JUDGMENT

KULDIP SINGH, J.:— The Bihar State Co-operative Marketing Union Limited (BISCOMAUN) (hereinafter calledBISCO) is an apex body operating in the State of Bihar. It is a federation of Co-operative Societies and its primary-function is to supply fertiliser to farmers through its depots and godowns numbering about 550, spread-over the State of Bihar.

2. Shri P. P. Sharma, IAS took over as Managing Director of BISCO on May 26, 1986 and continued to hold the said office till June 14, 1987. From December, 31, 1986 to June 14, 1987 he was also Secretary, Department of Co-operative, Government of Bihar and Registrar, Co-operative Societies, State of Bihar. G. D. Mishra was working as Advisor to BIS.CO during 1986-88. He resigned from the said post on August, 1988. It may be mentioned that one Tapeshwar Singh was the Chairman of BISCO during the above said period.

3. M/s. Rajasthan Multi Fertiliser Pvt. Ltd., Udaipur, Rajasthan (hereinafter called the firm) was holding a Certificate of Registration issued on August 8, 1985 by the Director of Agriculture, Bihar. It is alleged that a letter dated August 19, 1986 was addressed by the firm to the Managing Director of BISCO offering to supp