DWARKA PRASAD, J.— The petitioner is a contractor and used to purchase scrap materials sold at railway auctions. The Controller of Stores, Northern Railway, New Delhi, published a public notice on January 18, 1967 notifying the sale by public auction of scrap steel rails at Bilara in Jodhpur Division of the Northern Railway. The highest bidder was required to deposit 25% of the sale price on the fall of hummer and to pay the remaining amount to the Chief Cashier and pay Master, Northern Railway or Divisional Cashier and Pay Master concerned, within seven days from the date of final acceptance of the bid The petitioner was the highest bidder in respect of one lot of scrap steel rails sold by auction held at Bilara on January 31, 1967, sold for Rs. 60, 680/- and he deposited 25% earnest money then and there, on the closure of the auction and also deposited the balance 75% of the sale price within the prescribed period.

2. However, on April 1, 1967 the Divisional Superintendent, Northern Railway, Jodhpur Division, informed the petitioner and other auction purchasers that the highest bids given by them for the sale of scrap steel rails were not accepted by the Controller of Stores, Nort

Click Here to Read the rest of this document