Summarize the following court judgment. Appeal No. 1807 of 1971. Appeal by special leave from the judgment and order dated May 6	 1971 of the	 Patna High Court in C.W.J.C. No. 41 of 197 1. L. M. Singhvi	 section C. Dingra and U. P. Singh	 for the appellant. section V. Gupte and B. P. Singh	 for respondents Nos. 1 to 5. section N. Prasad and D. N. Mishra	 for respondent No. 6. The Judgment of the Court was delivered by Mathew	 J. The appellant filed a writ petition before the High Court of Patna_praying for quashing an order passed by the Minister of Forest	 Government of Bihar	 on December 13	 1970	 and for issue of a writ in the nature of mandamus directing the respondents 1 to 5 to give effect to the previous order of the Minister of Forest dated November 27	 1970. The writ petition was heard by a Division Bench of the Court and the petition was dismissed. This appeal	 by special leave	 is from that judgment. There is a bamboo coup know as "Bantha Bamboo coup in Chatra North Division of Hazaribagh district. On July 22	 1970	 the Forest Department of the Government of Bihar advertised for settlement of the right to exploit the COUP by Public auction ' The auction was held in the Office	 of the Divisional Forest Officer on August 7	 1970. Five persons including the appellant participated in the auction. Though the reserve price fixed in the tender notice was Rs. 95	000/ 	 the appellant 's bid of Rs. 92	001/ 	 being the highest	 was accepted by the Divisional Forest Officer. The petitioner thereafter deposited the security amount of Rs. 23	800/ and executed an agreement. The Divisional Forest officer reported about the auction We servator of Forests	 Hazaribagh Circle	 by his letter dated August 25	 1970. As the price for which the coup was provisionally	 632 settled exceeded Rs. 50	0001 	 the Conservator of Forests forwarded the papers regarding the auction sale to the Deputy Secretary to Government of Bihar	 Forest Department	 for coation of the acceptance by the Government. Since the provisional settlement was made for an amount less than the reserve price	 the matter was also referred to the Finance Department. The Finance Department invited comments from the Divisional Forest Officer as to why the settlement was made for a lesser amount. The Divisional Forest Officer	 by his letter dated October 30	 1 970. submitted his explanation for the provisional settlement at an amount below the reserve price. When the matter was pending before the Government	 the appellant expressed his willingness to take the settlement at the reserve price of Rs. 95	000 by his communication dated October 26	 1970. The appellant thereafter filed an application on November 3	 1970	 praying for settlement of the coup on the basis of the highest bid. The Minister of Forest	 by his proceedings dated November 27	 1970	 directed that the coup may be settled with the highest bidder. namely the appellant	 at the reserve. price. A telegram was sent by the Government to the Conservator of Forests	 Hazaribagh Circle on November 28	 1970	 with a copy of the same to the Conservator of Forest	 Bihar	 confirming the auction sale to the appellant at the reserve price of Rs. 95	000/ . As no intimation was received by the Divisional Forest Officer	 he did not cormmunicate the proceedings of the Minister to the appellant. One Md. Yakub	 Respondent No. 6	 filed a petition on December 4. 1970	 before the Government of Bihar	 Respondent No. 1. offering to take the settlement of the coup in question for Rs. 1	01	125/ . A telegram was sent by the Government on December 5	 1970	 to the Divisional Forest Officer	 directing him not to take any action on the basis of the telegram dated November 28	 1970	 sent to him in pursuance of the proceedings of the Government dated November 27	 1970. That telegram was received by the Divisional Forest Officer on December 10	 1970. and the Divisional Forest Officer	 by his letter dated December 10. 1970	 informed the Government that the previous telegram dated November 28	 1970	 was not received by him and so it content was not communicated to the appellant. The whole matter was there after placed before the Minister of Forest and the Minister	 by his proceedings dated December 13	 1970	 cancelled the settlement of the coup with appellant and settled the same with Respondent No. 6 for. 1	01	125/ . The Government thereafter sent telegrams on December 21	 1970	 /to the Conservator of Forests and the Divisional Forest Officer informing them that the coup had been settled with Respondent No. 6. The Divisional Forest Officer. by his letter dated December 23	 1970	 directed Respondent No. 6 to deposit the security amount and to pay the first instalment. Respondent No. 6 deposited the same and executed an agreement. 633 The contention of the appellant in the writ petition was that there was a concluded contract when the bid of the appellant was accepted by the Divisional Forest Officer though that was subject to confirmation by the Government and that	 when the Government confirmed the acceptance by its proceedings	 dated November 27	 1970	 it was no longer within the power of Government to make the settlement of the coup upon the 6th Respondent by its proceedings dated December 13	 1970. It was also contended in the alternative that the settlement of the coup in favour of. the 6th Respondent was in violation of statutory rules and	 therefore	 in any event	 that settlement was invalid. As already indicated	 the High Court negatived these conten tions and upheld the validity of the settlement in favour of the 6th Respondent. The special conditions in the tender notice makes it clear that the Divisional Forest Officer has the right to	 accept a bid of less than Rs. 5	0001 	 that acceptance of a bid of more than Rs. 5	0001 by him is subject to confirmation by the Chief Conservator of Forests and the Forest Department of the Bihar Goverment	 that an auction sale for an amount of more than Rs. 5	0001 would not be recognised until it is confirmed by the competent authority	 and that a bid made in auction and which has been provisionally accepted by the Divisional Forest Officer shall be binding on the bidder for two months from the date of auction or till the date of rejection by the competent authority	 whichever is earlier. Counsel for the appellant contended that there was a condi tional acceptance of the offer of the appellant by the Divisional Forest Officer	 that on confirmation by the Government	 that acceptance became unconditional and	 therefore	 there was a concluded contract when the Government confirmed the acceptance	 even though the confirmation was not communicated to the appellant. In support of this	 he relied on The Rajanagaram Village Cooperative Society vs Veerasami Mudaly(1). There it was held that in the case of a conditional acceptance in the presence of a bidder	 the condition being that it is subject to approval or confirmation by some other person	 the acceptance	 though conditional	 has to be communicated and when that is communicated	 there is no further need to communicate the approval or confirmation which is the fulfillment of the condition. It was further held that a conditional acceptance has the effect of binding the highest bidder to the contract if there is subsequent approval or confirmation by the person indicated	 that he cannot resile from the contract or withdraw the offer	 and if there is approval. or confirma (1) [1950] 11 M.L.J.486. 634 tion	 the contract becomes concluded and enforceable. This decision was considered in Somasudaram Pillai vs provincial Government of Madras(1) where Chief Justice Leach	 speaking for the Court said that	 to have an enforceable contract	 there must be an offer and an unconditional acceptance and that a person who makes an offer has the right to withdraw it before acceptance	 in the absence of a condition to the contrary supported by consideration. He further said the fact that there has been a provisional or conditional acceptance would not make any difference as a provisional or conditional acceptance cannot in itself make a binding contract. The question whether by an acceptance which is conditional upon the occurrence of a future 'event a contract will become concluded was considered by Williston and this is what he says : ( ) " A nice distinction may be taken here between (1) a so called acceptance by which the acceptor agrees to become immediately bound on a condition not named in the offer	 and (2) an acceptance which adopts unequivocally the terms of the offer but states that it will not be effective until a certain contingency happens or fails to happen. In the first case there is a counteroffer and rejection of the original offer; in the second case there is no counter officer	 since there is no assent to enter into an immediate bargain. There is	 so to speak	 an acceptance in escrow	 which is not to take effect until the future. In the meantime	 of course	 neither party is bound and either may withdraw ' More over	 if the time at which the acceptance was to become effectual is unreasonably remote	 the offer may lapse before the acceptance becomes effective. But if neither party withdraws and the	 delay is not unreasonable a contract will arise when the contingency happens or sti pulated event occurs" In this case	 it is not the want of communication of the confirmation by the Government to the appellant that really stands in the way of there being a concluded contract	 but rather the want of confirmation by the Government of the conditional acceptance by the Divisional Forest Officer. The appellant 's bid was for Rs. 92	001/ . The	 acceptance of the bid by the Divisional Forest Officer was	 therefore	 subject to confirmation by Goverment. The proceedings. of the Minister dated November 27	 1970	 would show that he did not confirm the acceptance of the (1) A.I.R. 1947	34 Madras	 366. (2) Williston On Contracts	 Vol. I	 3rd Ed. Section 77A	 635 offer by the Divisional Forest Officer. What the Minister did was not to confirm the acceptance made by the Divisional Forest Officer	 but to accept the offer made by the appellant in his communication dated October 26	 1970	 that he would take the coup for the reserved price of Rs. 95	000/ . There was	 therefore	 no confirmation of the acceptance of the bid to take the coup in settlement for the amount of Rs. 92	001/ . If the offer that was accepted was the offer contained in the communication of the appellant dated October 26	 1970	 we do not think that there was any communication of the acceptance of that offer to the appel lant. The telegram sent to the Conservator of Forest	 Hazaribagh	 by the Government on November 28	 1970	 cannot be considered as a communication of the acceptance of that offer to the appellant. The acceptance of the offer was not even put in the course of transmission to the appellant; and so even assuming that an acceptance need not come to the knowledge of the offeror the appellant cannot contend that there was a concluded contract on the basis of his offer contained in his communication dated October 26	 1970	 as the acceptance of that offer was not put in the course of transmission. Quite apart from that	 the appellant himself revoked the offer made by him on October 26	 1970	 by his letter dated November 3	 1970	 in which he stated that the coup may be settled upon him at the highest bid made by him in the auction. We are	 therefore	 of the opinion that there was no concluded contract between the appellant and the Government. This takes us to the question whether the settlement in favour of the 6th Respondent was in violation of any statutory rule. The appellant 's contention was that the settlement in favour of the 6th Respondent by a private treaty was in violation of the	 rules of executive business made under Article 166(3). Rule 10 of the Rules provides : "10(1) No department shall	 without previous consultation with the Finance Department	 authorise any orders (other than orders pursuant to any general or special delegation made by the Finance Department) which (a) either immediately or by their repercussion	 will affect the finances of the State	 or which	 in particular	 (i) involve any grant of land or assignment of revenue or concession	 grant	 lease or licence of mineral or forests	 rights or a right to water power of any easement or privilege in respect of such concession. ** *** ** *** 636 (2)	 Where on a proposal under this rule	 prior consultation with the Finance Department is required	 but on which the Finance Department might not have agreed	 no further action shall be taken on any such proposal until the cabinet takes a decision to this effect. " A copy of the letter from the Deputy Secretary to the Government of the Accountant General	 Bihar	 dated November 22	 1967 would show that some relaxation of Rule 10(1) of the rules of executive business was made by the Finance Department relating	 to lease of forest Coups or forest produce of the value of more than Rs. 50	0001 . That letter reads as under : "Subject : Revision of procedure in issuing any order involving any grant of lease	 sale or licence of minerals of forest rights if such order is issued by the Administrative Department at the	 Secretariat level. "Sir	 I am directed to say that in relaxation of rule 10 of the Rules of Executive Business	 Government have been pleased to decide that the Forest Department shall authorise orders sanctioning leases of Forest coups or produce of the value of more than Rs. 50	0001 (rupees fifty thousand) each	 subject to the following conditions that (1) Reserve price of the coup has been fixed before auction. (2) Highest bid should be accepted. (3) Highest bid should not be less than the reserve price. (4) Any relaxation to the above conditions may not ordinarily be allowed except with the prior concurrence of the Finance Department. " Before the High Court the contentions of the 6th Respondent were	 firstly	 that the rule 10(1) is not a statutory rule and	 secondly	 that it did not concern lease of forest land. The High Court	 without deciding the question whether the rule is a statutory rule	 held that the rule has nothing to do with the lease of forest coups and said that there was nothing which prevented the Government from giving the coup on lease by private treaty. The High Court	 therefore	 held that there was no bar statutory or otherwise	 to the settlement of the coup in favour of Respondent 637 No. 6 by private negotiation and as such the settlement in his favour was valid. 	 Counsel for the appellant argued that the High Court went wrong in its conclusion that rule 10(1) as relaxed	 did not apply to the grant of the lease of the coup in question and that it really prohibited a lease of forest land except by public auction. 	 We are not satisfied that the construction contended for is correct. Neither rule 10(1) nor the rule as relaxed says that forest land can be leased only by public auction. Rule 10(1) in so far as it is relevant to the present case only says that no department shall	 without prior consultation with the Finance Department	 authorise by any order	 the lease or licence of mineral or forests. The relaxation made to rule 10(1) as evidenced by the letter from the Deputy Secretary to the Government is to the effect that in the case of lease of forest land of the value of more than Rs. 50	000/ 	 if made by public auction	 it can only be made subject to the conditions mentioned there. In other words	 rule 10(1) as relaxed does not prohibit the grant of a lease by private treaty. The rule read in the context of its relaxation as mentioned in the letter of the Deputy Secretary would only show that consultation with the Finance Department is not necessary for a lease	 if the lease is of of the value of more than Rs. 50	000/ and is granted in pursuance of a public auction held in conformity with the conditions mentioned in the letter of the Deputy Secretary. Now the question is whether the coup in question was settled in favour of the	 6th Respondent in accordance with Rule 10(1). It is clear from the records relating to the proceedings for the grant of the lease in favour of the 6th Respondent that the Finance Department was not consulted before the Minister passed the order on December 13	 1970	 to grant the lease. But counsel for the Government of Bihar and 6th Respondent contended that rule 10(1)	 in so far as it requires prior consultation with the Finance Department	 is only directory in character and therefore	 even if there was no prior consultation	 the settlement was valid. So	 the question arises whether rule 10(1) which requires prior consultation with the Finance Department is mandatory or not. Several tests have been propounded in decided cases for determining the question whether a provision in a statute	 or a rule is mandatory or directory. No universal rule	 can be laid down on this matter. In each case one must look to the subject matter and consider the importance of the provision disregarded and the relation of that provision to the general object intended to be secured. Prohibitive or negative words can rarely be directory and are indicative of the intent that the provision is to be mandatory (see Earl T. Crawford. The Construction of Statues	 pp. 523 4). 638 Where a prescription relates to performance of a public duty and to invalidate acts done in neglect of them would work serious general inconvenience or injustice to persons who have no control over those entrusted with the duty	 such prescription is generally understood as mere instruction for the guidance of those upon whom the	 duty is imposed (see Dattatreya Moreshwar Pangerkar vs The State of Bombay and others(1)]. Where	 however	 a power or authority is conferred with a direction that certain regulation or formality shall be complied with	 it seems neither unjust nor incorrect to exact a rigorous observance of it as essential to acquisition of the right or authority (see Maxwell	 Interpretation of Statutes	 6th edition	 pp. 649650). in this case	 we think that a power has been given to the Minister in charge of the Forest Department to do an act which concerns the revenue of the State and also the rights of individuals. The negative or prohibitive language of rule 10(1) is a strong indication of the intent to make the rule mandatory. Further	 rule 10(2) makes it clear that where prior consultation with the Finance Department is required for a proposal	 and the department on consultation does not agree to the proposal	 the department originating the proposal can take no further action on the proposal. The cabinet alone would be competent to take a decision. When we see that the disagreement of the Finance Department with a proposal on consultation	 deprives the department originating the proposal of the power to take further action on it	 the only conclusion possible is that prior consultation is an essential pre requisite to the exercise of the power. We	 therefore	 think that the order passed by the Minister of Forest	 Government of Bihar on December 13	 1970	 settling the coup in favour of the 6th Respondent was bad and we quash the order. We allow the appeal to the extent indicated but make no order as to costs. G.C. Appeal allowed. (1) ; at p. 624.

The right to exploit a bamboo coup in the Hazaribagh district of Bihar was auctioned in August 1970. The reserve price was Rs. 95	000/but the appellant 's bid of Rs. 92	001/ being the highest was accepted by the Divisional Forest Officer. The petitioner deposited the security required and executed an agreement. The Divisional Forest Officer about the auction sale to the Conservator of Forests	 Hazaribagh Circle . As the price for which the coup was provisionally settled exceeded Rs. 50	0001 the Conservator of Forests forwarded the papers regarding the auction sale to the Deputy Secretary to the Government of Bihar	 Forest Department for confirmation of the acceptance	 by the Go Since provisional settlement was made for an amount less than the reserve price the matter was also referred to the Finance Department. When the matter was pending the appellant expressed his willingness to take the settlement at the reserve price of Rs.	 95	000/ by his communication dated October 26	 1970. The appellant thereafter filed an application on November 3	 1970 praying for settlement of the coup on the basis of the highest bid. The Minister of Forest by his proceedings dated November 27	 1970 directed that the coup may be settled with the highest bidder viz. the appellant at the reserve price. A telegram was sent by the Government to the Conservator of Forests	 Hazaribagh Circle on November 28	 1970 with copy of the same to the Conservator of Forest	 Bihar co the auction sale at the reserve price of Rs	 95	000/. As no intimation was received by the Divisional Forest Officer he did not communicate the proceedings of the Minister to the appellant. On December 24	 respondent No. 6 filed a petition to the Government offering to take the settlement of the coup in question for Rs. 101125/ . The Minister	 by his proceedings dated December 13	 1970 cancelled the settlement of the coup with the appellant and settled the same with respondent No. 6 for Rs. 101125/ . 'The appellant filed a writ petition in the high Court contending that there was a concluded contract when the bid of the appellant was accepted by the Divisional Forest Officer though that was subject to the confirmation by the Government and when the Government confirmed acceptance by its proceedings dated number 27	 1970 it was no longer within the Dower of the Government to make the settl ement of the coup upon the 6th respondent. It was also contended that the settlement of the coup in favour of the 6th respondent was invalid because (a) rule 10(1) of the Rules of Executive Business made under article 166(3) of the Constitution as relaxed by the letter of. the Deputy Secretary to the Government dated November 27	 1967 pro hibited the grant of lease by private treaty and (b) the requirement of 12 L1031SupCI/72 630 prior consultation in r. 10(1) with the Finance Department was mandatory and had not been complied with. The High Court rejected the appellant 's contentions. In appeal to this Court by special leave. HELD : (1) The acceptance of the appellant 's offer was subject to confirmation by the Government and in the absence of such confirmation them could be no concluded contract. The appellant 's bid was for Rs;. 92001/ . The acceptance of the bid by the Divisional Forest Officer was therefore	 subject to confirmation by the Government. The proceeding of the Minister dated November 27	 1970 would show that he did not confirm acceptance of the offer by the Divisional Forest Officer. What the Minister did was not to confirm the acceptance made by the Division 31 Forest Officer but to accept the offer made by the appellant in his communication dated October 26	 1970 that he would take the coup for the reserved price of Rs. 95	000/. There was	 there for	 no confirmation of the acceptance of the bid to take the coup in the settlement for the amount of Rs. 92	001/ . [634 G 635B] If the offer that was accepted was the offer contained in the communication of the appellant dated October 26	 1970 it could not be said that there was any communication of the acceptance of that offer to the appellant. The telegram sent to the Conservator of Forest	 Hazaribagh by the Government on November 28	 1970 could not be considered as a communication of the acceptance of that offer to the appellant. The acceptance 	 of the offer was not even put in course of transmission to the appellant; and so even assuming that acceptance need not come to the knowledge of the offer or	 the appellant could not contend that there was a concluded contract on the basis of his offer contained in his communication dated October 26	 1970	 as the acceptance of that offer was not put in the course of transmission. Apart from that the appellant himself revoked the offer made by him on October 26	 1970 by his letter dated November 3	 1970 in which he stated. that the coup may be settled upon him at the highest bid made by him in	 the auction. There was	 thus no concluded contract between the appellant and the government. [635B D] The Rajanagaram Village Cooperative Society	 vs Veeraswami Mudaly	 	 distinguished. Somasundaram Pillai vs Provincial Government of Madras	 A.I.R. 1947 Madras	 366	 applied. (ii)Rule 10(1) in so far as it was relevant to the present case only says that no department shall without prior consultation with the Finance Department authorise by any order the lease of license of mineral or forests. The rule read in the context of its relaxation as mentioned in the letter of the Deputy Secretary would only show that consultation with the Finance Department is not necessary for a lease if lease is of land of the value of more than Rs. 50	0001 and 'is granted in pursuance of public auction held in conformity with the conditions mentioned in the letter of the Deputy Secretary. The rule where before or after relaxation did not prohibit the grant of leave by private treaty. [637C] (iii)It was clear from records relating to the proceedings for the grant of the lease in favour of the 6th respondent that the Finance Department was not consulted before the Minister passed the order on December 13	 1970. to grant lease. It could not be said that rule 10(1) in so far Is it requires prior consultation with the Finance Department is only drirectory and therefore even if there was no	 prior consultation the settlement 631 was valid. The negative or prohibitive language of rule 10(1) is a strong indication of the intent to make the rule mandatory. Further rule 10(2) makes it clear that where prior consultation with the Finance Department is required for a proposal and the department on consultation	 does not agree to the proposal	 the department originating the proposal can take no further action on the proposal. The Cabinet alone would be competent to take a decision. Prick consultation is	 therefore	 an essential prerequisite to the exercise of power. The	 order passed by the Minister of Forest	 Government of Bihar on December 13	 1970 settling the coup in favour of the 6th respondent was	 therefore bad and the order must be quashed. [637EF; 638D F] Dattatreya Moreshwar Pangerkar vs The State of Bombay and Others. applied.