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1976 Supreme(Ori) 29

High Court Of Orissa
R. N. Misra, J.
SUBARNA BARIK - Appellant
Versus
STATE OF ORISSA - Respondent
First Appeal 9  Of  1969
Decided On : 06/25/1976

Advocates Appeared:
R.MOHANTY

The plaintiff did not have a valid claim for a lease agreement with a specific clause protecting their monopoly right. The plaintiff also failed to prove deliberate and mala fide actions by the defendants causing their loss.

Headnote:

The judgment does not reference any specific acts or sections.

Fact of the Case:

The plaintiff won an auction for the exclusive right to operate a canteen within the premises of the Cuttack Collectorate. However, unauthorized vendors were allowed to open stalls within the premises, adversely affecting the plaintiff's business. The plaintiff filed a suit seeking a lease agreement with a specific clause protecting their monopoly right, damages, and injunction against the defendants. The trial court dismissed the suit, finding that there was no written contract and the plaintiff failed to prove any loss due to the defendants' actions. The plaintiff appealed against the dismissal.

Finding of the Court:

The court found that although there was no written contract, the conduct of the defendants indicated that it was their duty to stop unauthorized vending within the Collectorate building. However, the court did not accept that a monopoly right was conferred on the plaintiff, and even if it was, the defendants had no obligation to uphold it. The court also found that the plaintiff failed to prove deliberate and mala fide actions by the defendants causing their loss.

Ratio Decidendi: The court held that the plaintiff did not have a valid claim for a lease agreement with a specific clause protecting their monopoly right. The court also found that the plaintiff failed to prove deliberate and mala fide actions by the defendants causing their loss.

Result: The plaintiff's appeal was dismissed, and each party was directed to bear their respective costs.

R. N. MISRA, J.

( 1 ) ON 21-3-1965, the Tahsildar of Cuttack (defendant No. 4) published a notice inviting intending bidders for allotting of the Sairat, namely the sole and exclusive right to hold a canteen, betel shop and cold drinks stall within the premises of the Cuttack Collectorate for the year 1965-66, i. e. 1st April, 1965 to 31st of March, 1966. The auction was held on 31-3-1965 and there were many bidders including the plaintiff. The bid given by the plaintiff at Rs. 16,200/- was the highest and was accepted. The plaintiff deposited a sum of rs. 6,050/- out of the bid money and was put into possession of the canteen located within the Collectorate. Plaintiff found that in violation of the monopoly right conferred under the auction sale, several unauthorised vendors were permitted to open stalls within the premises of the Collectorate which very much adversely affected the plaintiff's business. Plaintiff represented to the public authorities and demanded that the monopoly conferred on the plaintiff should be protected but adequate steps were not taken in that behalf. When plaintiff demanded execution of a formal contract specifically providing for the monopoly right of the plaintiff, defendants were not agreeable to incorporate the said clause. Plaintiff was called upon to pay the balance money. Therefore, on 21-1-1966, the suit was filed asking for a decree directing the defendants to enter into a covenant of lease with him with a specific clause providing for the monopoly right as aforesaid and for a decree for recovery of damages of rupees 12,550/-and for permanent injunction against the defendants restraining them from interfering with plaintiff's right till 31st of March, 1966, to carry on the business.

( 2 ) ALL the defendants filed a joint written statement. Defendants denied that any monopoly right was intended to be conferred on the plaintiff in the matter of selling confectionary articles within the area nor had they undertaken any obligation to protect such alleged right of the plaintiff. They denied that plaintiff suffered any loss as a fact. Plaintiff's claims were also otherwise refuted as not tenable in law.

( 3 ) THE learned Additional Subordinate Judge came to hold:-

(i) although there was no written contract, the conduct of the tahsildar (defendant No. 4) and the facts stated in other documents exhibited in the case indicated unquestionably that it was the duty of the defendants to stop vending within the Collectorate building by others; (ii) plaintiff had signally failed to prove that he had sustained any loss in the matter on account of mala fides of the defendants; and (iii) if plaintiff had succeeded in establishing the mala fides as alleged, he would have been entitled to damages of Rs. 3,600/- relating to the period between 1-4-1965 and 30-7-1965. The suit was ultimately dismissed. Plaintiff has carried this appeal against the aforesaid decrees.

( 4 ) ACCORDING to Mr. Mohanty for the appellant, once the learned trial Judge held that it was a part of the arrangement that the plaintiff would have monopoly right of vending within the Collectorate, the defendants should have been made liable on account of their default in ensuring the monopoly right. Admittedly there is no contract. Therefore, the monopoly right claimed by the plaintiff has to be gathered only from other materials. Plaintiff has placed reliance on a photostat copy of a letter written by the Tahasildar (defendant No. 4) to the additional District Magistrate Ext. 7. Therein, it has been stated:-

"the canteen within the Kuchery compound has been leased out to one Subarna Barik (plaintiff) for the year 1965-66 and he is to exercise sole monopoly over sale of tea, tiffin, pan, sarbat etc. Within the Kuchery premises. . . . . "

In that very letter, there is a statement that employees of the different sections of the Collectorate have been catering to the needs of their respective offices. Therefore, the Tahsildar drew the attention of












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