BIHAR EASTERN GANGETIC FISHERMEN COOPERATIVE SOCIETY LTD v. SIPAHI SINGH (1977)

 BIHAR EASTERN GANGETIC FISHERMEN COOPERATIVE SOCIETY LTD v. SIPAHI SINGH (1977) 4 SCC 145 


FACTS OF THE CASE: 

The fishery rights in the Gangapath Islampur Jalkar which was with the Fishermen Cooperative Society from 1974 to 1975 for Rs. 150000 was made in favour of the respondent Sipahi Singh for the period 1975 to 1976 as a result of the public auction at which he offered the highest bid of Rs. 165000. 

However, the respondent requested for a remission in the amount at which the settlement had been made in his favour, on the ground that he had suffered a heavy loss during the year 1975-76, due to the unlawful activities of the appellants and if this was not possible, then in the alternative give him a continuance of fishery rights for the years 1976-1977 and 1977-1978 so that he could recoup his losses. The Government agreed to extend the time for his fishery rights in consideration of a deposit of Rs 165000.

However, the government changed its mind later and settled the fishery rights with the appellant. Sipahi Singh (the respondent) challenged this order by filing a writ petition under Art 226 of the Constitution.


 JUDGEMENT: The SC said that there is no binding and enforceable contract between the State of Bihar and Sipahi Singh because the requirements for a government contract to be valid as provided in Art 299 of the Constitution were not complied with.

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