( 1 ) THIS judgment will also govern the disposal of First Appeal No. 88 of 1965 (Firm gopichand Sarju Prasad v. The State of Madhya Pradesh) heard along with this appeal.

( 2 ) THESE appeals arise out of a suit for damages wherein the plaintiffs claimed Rs. 21,975/- as damages for breach of a contract. The trial Judge has given a decree in favour of the plaintiffs to the extent of Rs. 4,800/- and dismissed the rest of the claim of the plaintiffs. The State of Madhya Pradesh has preferred this appeal against the decree granted to the plaintiffs who have filed First Appeal No. 88 of 1965 with regard to the claim which was disallowed by the trial Judge.

( 3 ) THE facts shortly stated are as follows. On 26th June 1959, the Divisional Forest officer, Rewa issued an advertisement in the Madhya Pradesh Rajpatra stating that 4301. 71 cft. of timber lying at the forest depot at Jhiria would be sold by auction on 2nd July 1959. The auction on that day was, however, postponed to 9th july 1959 as the bids offered were too low. On 9th July 1959, the Divisional Forest officer increased the up-set price to Rs. 27,000/- and announced to the bidders the sale conditions, inter alia, t