Kalyan Limesworkers Ltd. V. State Of Bihar And Anrs. Facts: State of Bihar is the owner of a particular piece of land.

It gave this land on lease to Kuchwar Co for 20 years.. The lease agreement contained a clause which prohibited Kuchwar Co. in assigning its lease holding rights to anyone without the permission from State of Bihar. Kuchwar Co. went into voluntary liquidation and assigned the leasehold interest of the company to Subodh Gopal Bose. The other party took control of the property and was stopped by the Government as it was a breach of contract. The Board of revenue refused to sanction the proposed transfer. In 1934, Kalyanpur Co. (Appellant) applied for the lease for this land. The Board of Revenue (Government) accepted the lease. The appellants took control of this piece of land and cancelled the lease in favour of Kuchwar Co. Kuchwar Co. went to court for , it was dismissed in the lower court. But in the High Court, an injunction was issued and the appellant were ordered to vacate the land and Kuchwar Co. took control of the land. The Privy Council reaffirmed this decision. The argument put by the Lime Co. was that both the Lime Co. and Government proceeded on the assumption that the latter was fully competent to lease the land, the appellant did not succeed in restitution. In 1948, after the lease period with Kuchwar Co. ended. The Govt. entered into a contract with Dalmia Co. for new lease agreement. The appellant sued both the Govt. and Dalmia Co. for specific performance. In the trial Court the judgement was in favour of the appellants. The High Court reversed the judgement of the trial court. In the Supreme court ,it was held that the Govt. could not certainly plead that the contract was void on the ground of mistake and refuse to perform that part of the agreement which it was possible for it to perform. The Appellants were given compensation from the period of 1948 to 1954(date of expiration of lease agreement signed in 1934).