K. S. PUTTASWAMY, J.

( 1 ) A Co-operative Society called Vanivilasa Co operative Sugar Factory, Ltd. , hiriyur-respondent No. 3, established and functioning under the provisions of the Karnataka Co operative Societies Act, 1959, (Karnataka Act No. 11 of 1959) (hereinafter referred to as the Act) engaged in the manufacture of sugar, some time in 1979 established a distillery for manufacture of rectified spirit. On 1-3-1980, the board of Directors of the Society, inter alia, decided that the distillery should be given on lease to avoid further losses, in pursuance of which a brief advertisement was issued on 12-3-1980, inviting tenders to lease the distillery.

( 2 ) IN response to the above said advertisement, the petitioner, respondent No. 4 and seven others, with whom we are not now concerned, filed their tenders to operate the distillery at the rates or amounts specified in their respective tenders. In their tenders, the petitioner and respondent no. 4 offered to pay a rent of Rs. 7,02,000 and Rs. 6,20,000 respectively.

( 3 ) BEFORE the tenders were opened on 28-7-1980 at 12 noon, that being the appointed date and time for opening tenders, the Executive Committee of the Society, co

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