JUDGMENT

CHINNAPPA REDDY, J. :— The Uttar Pradesh legislature enacted the Uttar Pradesh Forest Corporation Act, 1974 to provide for the establishment of a Corporation for the better preservation, supervision and development of forest and the better exploitation of forest produce within the State of Uttar Pradesh. The Chairman and all other members of the Corporation were to be appointed by the State Government. The State Government was to make subversions and to advance loans to the Corporation from time to time. The Corporation was required to perform the functions prescribed by the Act subject to any general or special directions that might be given by the State Government. One of the functions of the Corporation, expressly stipulated by the Act, was "to undertake removal and disposal of trees and exploitation of forest resources entrusted to it by the State Government." Another function was to manage, maintain and develop such forests as are transferred or entrusted to it by the State Government. Obviously, the contract system, that is, the system of selling by public auction the right to fell trees and exploit forest produce in specified forest areas (described in their parlance on forest lots was to go. It was to be substituted by the scheme of allotting the forest lots to the Uttar Pradesh Forest Corporation and required the Corporation to fell the trees and exploit forest produce. However, despite the enactment of the Uttar Pradesh Forest Corporation Act, the contract system appeared to persist. For the year 1980-81 auction of forest lots of East Bahraich Division was, as in previous years, advertised and it was to be held on 22nd, 23rd, 24th and 25th September, 1980. But soon after publishing the advertisement, the Government took a decision that the forest lots should be allotted to the Uttar Pradesh Forest Corporation for felling of trees. This decision appears to have led forest contractors to move fast in the matter by getting some members of the Legislature to intervene almost immediately. Notwithstanding. that the Legislature itself had laid down the policy to be pursued in the matter of exploitation of forest, produce, which was to be through the offices of the Forest Corporation, some legislators, acting quite contrary to legislative policy, recommended to the Forest Minister of the Government of Uttar Pradesh that the forest lots of Bahraich Forest Division should not be allotted to the Forest Corporation. There was a meeting in the room of the Minister. After some discussion, the Minister issued oral instructions to the effect that the Forest Corporation should work only Khair lots in both the Forest Divisions of Bahraich during the year. 1980-81 and that the allotment of lots of sal and other trees to the Forest Corporation was to be cancelled. The Minister also issued oral instructions that the work of the Forest Divisions of Bahraich was to be entrusted to the Forest Corporation next year. Pursuant to the oral instructions of the Minister, the Uttar Pradesh Forest Corporation, by its letter dated September 6, 1980, informed the Chief Conservator of Forests, Uttar Pradesh that they would take up work of Khair lots only during the year 1980-81. The Chief Conservator of Forests in his turn conveyed the information to the Conservator of Forests. Gorakhpur and the Division Forest Officer, East Bahraich Forest Division,. Thereafter, forest lots of East Bahraich Division other than Khair, were advertised for public auction on 1st, 3rd, 4th and 5th of November. It was one of the conditions of the auction that any bid that might be accepted at the time of auction was only provisionally accepted and that it was subject to ratification by the competent authority, namely, the State Government. On 1st, 3rd and 4th November the auction went off smoothly and bids for several lots were provisionally accepted by the Forest Officers. On November 5, 1980 there was trouble. There was an explosion at the place of auction. It s