( 1 ) ON a difference of opinion between my brothers Nigam and Katju in First Appeal No. 2 of 1955 the following question of law has been referred to me by them under Section 98 (2) of the code of Civil Procedure: "whether the terms of Section 175 (3) of the Government of India Act, 1935, require the execution of a formal document or whether the contract can be culled from the correspondence passing between the parties?"

( 2 ) THE facts giving rise to this reference are as follows: the State of Uttar Pradesh (hereinafter referred to as the respondent) owned and possessed two bungalows at Bahramghat, Tahsil Fatehpur, district Bara Banki, known as the Works Managers bungalow and the Works Superintendents bungalow. These bungalows stood on the land belonging to the Oudh-Tirhut Railway Administration (hereinafter referred to as the O. T. R. Administration) and not the Government of U. P. The respondent offered to sell these bungalows for Rs. 19,965-6-6, their book value, to Thakur Dan Singh Bisht (hereinafter referred to as the appellant) by means of a telegram dated 23-12-1948. The offer was accepted by the appellant by means of a telegram as also by a confirmatory le