This is a reference made by Honble Chief Justice under Chapter VIII, Rule 3 of the Rules of the Court in view of the difference of opinion on the reasonings and conclusions in the Division Bench comprising Honble Mr. Justice P. Basu and Honble Mr. Justice M. C. Agarwal in the aforesaid writ peti tion.

2. The short facts leading to this ref erence are as under:

(a) In pursuance of a Public Notice dated 16-1-1995 issued under Chapter VI of U. P. Minor Minerals (Concession) Rules, 1963, petitioner Ram Bishwash and others including respondent No. 3 applied for grant of mining permits in respect of sand/morum. They offered their bids. The bid of respondent No. 3 was found highest as such it was accepted and a mining permit was granted to him. It is this grant of permit in the name of respondent No. 3 that has been challenged by means of this petition on the ground that the respondent No. 3 being an employee of U. P. State Mineral Development Corporation (for short the corporation; was legally incapable of entering into any business contract during the course of his employment.

(b) The writ petition was listed before the aforesaid Division Bench of this Court. Having heard l