Bachawat J. This appeal raises the question of the legality of the cancellation of the sale to the appellant of the exclusive privilege of retail vend of toddy and arrack for the year 1968-69 in a group of 1168 shops in Raichur and Gulbarga districts under the Mysore Excise Act, 1965 and the Mysore Excise (Disposal of Privileges of Retail Vend of Liquors) Rules, 1967. On May 10, 1968 the excise commissioner of Mysore published a notice stating that the exclusive privilege would be sold by tender-cum-auction by the divisional commissioner, Gulbarga on May 28 and inviting tenders by May 27. On May 27, the appellant made a tender offering Rs. 9,99,999/- towards the monthly rental of the shops and deposited the requisite earnest money amounting to Rs. 1,85,168/- as required by r. 7(f). Respondent No. 4 K.V. Niranjan made a tender offering Rs. 9,69,999/towards the monthly rental. The appellant was the only bidder present at the auction on May 28. His offer being the highest was accepted by the divisional commissioner, Gulbarga, un,der r. 17(1). The appellant deposited another sum of Rs. 8,14,831/- which together with the earnest money made up one month's rent as required by r. 17(5). On June 4, the divisional commissioner, Gulbarga, confirmed the sale under r. 17 (I).
