State has the power to lease out rights.

These petitions relate to the Chank fishery in the territorial waters along the Sivaganga coast in Ramanathapuram district. These waters extend from Sundarapandianpatnam to Karungadu. The Director of Fisheries who is the first respondent called for tenders for the lease of chank fishery for a period of three years from 1st June, 1962, and by GO. Ms. No. 2359, Food and Agriculture dated 11th July, 1962 ; the State Government directed the grant of lease to the second respondent, his bid of Rs. 64,646 as the annual rent being the highest. His tender was accordingly accepted by the first respondent by letter dated 12th July, 1962. Under the terms of the tender, the successful tenderer will be at liberty to collect chanks caught in nets and by means of diving as well within the limits specified. In the process of such collection of shells, no chanks of less than 21 inches in diameter should be fished and taken to the shore. Any chank under the limit of 2¼ inches in diameter, if brought inadvertently to the shore, all such undersized shells should be returned at once alive to the chank-beds at sea. All undersized shells in possession of the lessee are liable for forfeiture. Should there by any change in the size of full sized and undersized chanks classification during the course of the lease, it shall be binding on the contractor. The lessee has no right over the Valampuri shell fished and it should be promptly handed over to the Assistant Director of Fisheries, Sivaganga. The fishing operation of the successful tenderer shall be subject to the supervision by the departmental staff without let or hindrance and the tenderer should afford all facilities to the departmental staff for the supervision of fishing operations, inspection of the places of storage of chanks and to check the accounts at all times with a view to ascertain the number of chanks actually fished and accounted for and to enforce the conditions of the lease. The successful tenderer shall also be subject to any stipulation regarding the wages to be paid to the divers that the State Government may deem fit to impose if necessary and shall also prepare accounts regarding the chanks fished, and amount paid to the divers in such forms as may be prescribed and send them to the Director of Fisheries and Assistant Director of Fisheries, Sivaganga, every month. Failure to comply with the conditions of the lease will entail forfeiture of earnest money, security deposit, cancellation of contract and re-sale of the lease at the defaulter’s risk. The successful tenderer is required to engross these conditions of agreement on stamped paper and to get it registered within fifteen days from the date of intimation of acceptance of tender. The second respondent got up such a deed of agreement ready by 25th July, 1962, but before its execution these petitions were filed on 26th July, 1962 and on the same day, the petitioners obtained an ad interim injunction restraining the first respondent from leasing the fishery rights. After the respondents had entered appearance, as it was represented that the fishing season for the year would be over by the end of September and in view of the undertaking given by the second respondent to pay the petitioners such damages as the Court might fix at the time of the final hearing of the Writ Petition in the event of their claims being upheld, the ad interim injunction was vacated on 31st July, 1962. The petitions under Article 226 of the Constitution are for the issue of a writ in the nature of mandamus or any other appropriate writ or order directing the first respondent to forbear from taking further steps in respect of leasing out of fishery rights in Sivaganga waters pursuant to the tender notice dated 17th March, 1962. ‘The petitioners say that they are the residents of Karungadu village, are fishermen by occupation and have no other occupation in life except fishing for chanks in the coast of Sivaganga and in the chank fishery extend