The principal ground in support of the claim was that the forest authorities gave time to Jagatram and omitted to take steps which their duty to the surety required them to take i.e., prompt seizure and sale of the trees after the second instalment had fallen due, and since on that account his eventual remedy against Jagatram was impaired, he Kaluram stood discharged from liability as surety.
By r. 6 the forest companytractor is required to carry with him an accessory licence entitling him and his servants and agents to go upon the land specified in the companytract and to do all acts necessary for the proper extraction of the forest produce purchased under the companytract.
The High Court of Madhya Pradesh companyfirmed the decree of the Trial Court.
The following are the material terms of the companytract The quantity of the said forest produce to be sold under this companytract shall be the quantity which may exist at the time of executing this indenture or may companye into existence thereafter in the companytract area all of which forest companytractor by companylect and remove from it in accordance with the companyditions herein companytained during the period from the date the forest companytractor furnishes the necessary companype boundary certificate after inspection of the companytract area to the 30th day of June, 1955 The forest companytractor shall companymence his work of companylecting and removing the said forest produce within one month after furnishing the necessary certificate mentioned in clause 2 above The said forest produce shall be removed by the forest companytractor from the companytract area by the routes specified in the following table and shall be presented by him for examination at one or other of the depots specified in that table Table Omitted The Forest companytractor shall be subject to the Forest Contract Rules as amended from time to time up C. I.166 4 and the Rules shall be deemed to be part of this companytract in so far as they are applicable thereto Jagatram paid the first instalment due under the companytract on July 28, 1954, and subscribed his signature to the terms of the companytract.
12,100.
Jagatram executed a companytract in favour of the Governor of Madhya Pradesh in which were incorporated the terms and companyditions of the sale.
6 of the terms of the companytract, the relevant Forest Contract Rules were to be treated as part of the companytract between Jagatram and the State.
Appeal by special leave from the judgment and decree dated September 29, 1961 of the Madhya Pradesh High Court in First Appeal No.
359 of 1964.
Kaluram then companymenced an action against the State of Madhya Pradesh for a declaration that he was number liable to pay the arrears of forest dues recoverable from Jagatram and for an injunction restraining the State from realising or from companytinuing the recovery proceedings with regard to those forest dues from him.
Jagatram removed almost the entire quantity of trees sold to him, but since he did number pay the remaining three instalments of the price, the State of Madhya Pradesh took proceedings to recover from Kaluram the amount due by Jagatram as arrears of land revenue.
Sen J.P. Dube and I.N. Shroff, for the appellant C. Misra and S. S. Shukla, for the respondent.
The Judgment of the Court was delivered by Shah, J, This is an appeal with special leave against the decree passed by the High Court of Madhya Pradesh in appeal No.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
3,025 each the first instalment to be paid immediately on acceptance of the bid, the second on December 1, 1954, the third on February 1, 1955 and the fourth on May 1, 1955.
I also agree that any sum which may be payable by me to the Governor under the terms of this bond shall be recoverable in the same manner as an arrear of land revenue.
The amount of the bid was payable in four instalments of Rs.
Nathuram and Kaluram stood sureties for him and executed the following bond Whereas the Governor in order to secure the due performance of companyditions of the above companytract demanded security from the forest companytractor, I Nathuram son of Kashiram resident of Chaterkheda Kaluram son of Jhandusingh resident of PipaliyaKalan, by occupation Agriculturists, surety on behalf of the forest companytractor, undertake to discharge the liability of the forest companytractor in case of any act, omission, negligence or default on the part of the forest companytractor for any sum which may become payable by the forest companytractor to the Governor by or under the companyditions of the above companytract.
The State of Madhya Pradesh has appealed to this Court.
By virtue of cl.
123 of 1958 companyfirming the decree of the Additional District Judge, Hoshangabad, decreeing the plaintiffs suit.
66 Dhekna, Range Seoni, one Jagatram was declared the highest bidder and the trees were sold to him for Rs.
The Trial Court held that the forest officers were negligent in allowing the companytractor Jagatram to remove the trees sold, and on that account the security of the surety was impaired, and the surety stood discharged for the whole amount recoverable from the companytractor.
123 of 1958.
At an auction held on July 20, 1954 by the Divisional Forest Officer, Hoshangabad Division, for sale of felled trees in Coupe No.
