IMPORTANT POINT
Merely becoming a licensee with the State Government cannot amount to either supplying goods to Government or engaging in execution of any work undertaken by the Government.

JUDGMENT

Dr. Anand, CJI.-This appeal calls in question the judgment and order of the High Court of Punjab & Haryana in Election Petition No. 7 of 1997 decided on 29th September, 1997. The appeal arises in the following circumstances.

2. The appellant contested the election to 54 Raikot Assembly Constituency in the general elections to the Punjab Legislative Assembly held on 7th February, 1997. The respondent, a candidate of the Indian National Congress, was declared elected, After the declaration of the result of the elections on 10th February, 1997, the appellant filed an election petition in the High Court alleging that the respondent was disqualified from contesting the election to the Punjab Legislative Assembly under Section 9-A of the Representation of People Act, 1951 (hereinafter referred to as "the Act") as on the date of the filing of the nomination paper as well as on the date of the scrutiny of the nomination paper, the respondent had a subsisting contract, for the sale of liquor, with the Punjab Government, which he had obtained in partnership with others at the auction held for the year 1996-97. The petition was resisted by the respondent who in the written statement denied the allegations concerning his disqualification. A preliminary objection was raised that the election petition was not maintainable as the same did not disclose any factual basis to establish violation of Section 9-A of the Act. It was asserted that the election petition did not contain any allegation to the effect that the respondent had entered into a contract with the Government either for `the supply of goods or for the execution of the works undertaken by the Government and as such the respondent could not be said to have incurred any disqualification under Section 9-A of the Act. The respondent further pleaded that the contract for sale of liquor was not such a contract to which the provisions of Section 9-A of the Act could be attracted. Replication was filed and from the pleadings of the parties, the following issues were raised :

"1. Whether the respondent had subsisting contract for the sale of the liquor from the Punjab Government obtained in partnership for the year 1996-97 at the time of the filing of the nomination papers and on the date of the scrutiny of the nomination papers as alleged in Para No. 3 of the election petition, and if so, to what effect? OPP

2. Whether the election petition is not maintainable in view of the objections raised in Para Nos. 1 and 2 of the preliminary objections? OPR.

3. Whether the election of the respondent to the Punjab Assembly from 54-Raikot Assembly Constituency - is valid for the reasons stated in the petition? OPP.

4. Relief."

3. The parties led evidence and after hearing their arguments, the High Court dismissed the election petition.

4. Since, the challenge in the election petition to the election of the respondent, as canvassed before the High Court and before us, is based on Section 9-A of the Act, it would be desirable to first notice the provisions of that Section. Section 9-A reads :

"9-A. Disqualification for Government contractors, etc.

A person shall be disqualified if, and for so long as, there subsists a contract entered into by him in the course of his trade or business with the appropriate Government for the supply of goods to, or for the execution of any works undertaken by, that Government.

Explanation:---For the purposes of this section, where a contract has been fully performed by the person by whom it has been entered into with the appropriate Government, the contract shall be deemed not to subsist by reason only of the fact that the Government has not performed its parts of the contract either wholly or in part."

5. On its plain reading, Section 9-A of the Act requires (i) that there must be a subsisting contract which has been entered into by the person whose candidature is sought to be disqualified