HARIDWAR SINGH vs BAGUN SUMBRUI AND ORS.

The Supreme Court held that the acceptance of an auction bid by the Divisional Forest Officer, which was subject to government confirmation, did not result in a concluded contract until such confirmation was obtained. The Court emphasized that Rule 10(1) of the Rules of Executive Business, made under Article 166(3) of the Constitution, mandates prior consultation with the Finance Department, which was not adhered to in this case. Consequently, the settlement with the sixth respondent was deemed invalid, and the appeal was allowed.