STATE OF HARYANA & ORS. vs LAL CHAND & ORS.

The Supreme Court held that Article 299(1) of the Constitution of India does not apply when the State enters into a statutory contract, such as an excise contract under the Punjab Excise Act, 1914. The Court ruled that the State is entitled to recover the differential amount between the original auction bid and the re-auction bid under Section 60 of the Punjab Excise Act. The Court overturned the High Court's decision, affirming the State's authority to demand the difference due to the respondents' failure to comply with auction conditions.