IMPORTANT POINT
Contracts cannot be continued without finalizing of tender process and/or without issuing fresh tenders and/or without undertaking fresh tender process and by way of an interim arrangement only.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the High Court of Manipur at Imphal dated 04.11.2020 in Writ Appeal No. 28/2018, by which the Division Bench of the High Court has disposed of the said writ appeal with the following directions:

(a) The State Government and in particular, the Social Welfare Department shall take up immediate steps and issue fresh NIT for transportation of food grains and Micronutrients under the WBNP within a period of 10(ten) days from the date of receipt of a copy of this judgment and order.

(b) The whole tender process including the issuance of work order should be completed within 20(twenty) days from the date of issue of fresh NIT.

(c) Till the completion of the tender process and issuance of the work orders, the present arrangement for transportation of food grains under the WBNP pursuant to the interim order of this Court dated 19.2.2018 shall continue M/s B.K. Enterprises has preferred the present appeal.

2. We have heard Shri Siddhartha Dave, learned Senior Advocate appearing on behalf of the appellant and Shri Pukhrambam Ramesh Kumar, learned Advocate appearing for the respondents.

2.1 At the outset, it is required to be noted that this is a glaring example of lethargy on the part of the State Government in not inviting the fresh tenders for transporting Rice and other micronutrients under the Wheat Based Nutrition Programme (WBNP), from Food Corporation of India's depots in the State of Manipur, to the offices of Child Development Project Officers and to continue the contract without inviting fresh tenders on the basis of the Notice Inviting Tender (NIT) issued on 22.06.2017 causing huge loss to the State and the Public Exchequer.

3. That the State of Manipur through the Director of Social Welfare Department, Government of Manipur issued a NIT on 22.06.2017 for transporting Rice and other micronutrients under the Wheat Based Nutrition Programme (WBNP), from Food Corporation of India’s depots in the State of Manipur, to the offices of Child Development Project Officers. That the State’s Higher Tender Committee in its meeting dated 16.12.2017, recommended that the acceptable band of rate was Rs. 6,265 - Rs. 11,635 per MT per KM and further recommended that Route No. 8 be awarded to one RK and Co. and that fresh tender should be conducted for the other routes. That respondent no. 2 awarded contracts for all the routes to one RK and Co. by way of interim arrangement till the finalization of the re-tender process. That the appellant herein filed a writ petition before the High Court being Writ Petition (Civil) No. 63/2018 seeking award of tender with respect to route nos. 1, 3, 5 and 9 alleging inter-alia that being the lowest bidder as per Higher Tender Committee's band rate, it should be awarded the contract with respect to route nos. 1, 3, 5 and 9. During the pendency of the aforesaid writ petition, respondent no. 2-Director, Social Welfare Department vide order dated 30.04.2018 cancelled the Higher Tender Committee's proceedings and recommendations dated 16.12.2017.

3.1 That the High Court vide order dated 20.06.2018 disposed of the aforesaid writ petition with the directions to the respondents to constitute a High Power Committee to proceed with the tender process afresh from the stage where and after the technical and financial bids opened by the State/Director, Social Welfare Department and it should be completed on or before 21.07.2018.

3.2 The appellant herein filed Writ Appeal No. 28/2018 before the Division Bench of the High Court. Vide interim order dated 19.12.2018, the Division Bench of the High Court directed for equal distribution of the available WBNP rice amongst three contractors, namely, RK and Co. BLL Enterprises and BLL Agency as a temporary arrangement of all nine routes. The State entered into temporary distribution agreements with the aforementioned bidders. By the impugned judgment and order, the High Court has di