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2023 Supreme(AP) 1583

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Subba Reddy Satti, J.
Durai Enterprises – Petitioner
Versus
The State of Andhra Pradesh and Others – Respondents
Writ Petition No. 13623 of 2023
Decided On : 08-08-2023

Advocates:
Advocate Appeared:
For the Petitioner: Atchuthanda Dondeti
For the Respondents: T. Balaji, K. Venugopal Reddy

Headnote:(A) Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 - Sections 6(a)(ii) and 43 - Fundamental Rights - Articles 14 and 19 of the Constitution of India - Public auction for licensing human hair collection - Inclusion of solvency certificate clause challenged as arbitrary and illegal - Petitioner failed to submit required documentation for participation in auction - Legality of auction process affirmed by Court. (Paras 1-4, 8-27)

(B) Public Participation in Auctions - Requirement for bidders to comply with stipulated conditions is essential for fairness - Courts must respect the authority's understanding of tender requirements unless proven arbitrary. (Paras 24-28)

Facts of the case:
The petitioner sought to quash an auction held for human hair collection by claiming the inclusion of a solvency clause was illegal. The petitioner attempted participation but failed to meet the tender requirements as outlined.

Findings of Court:
The court found no merit in the writ petition due to the petitioner's non-compliance with the bidding conditions.

Issues: The main issues included the legality of the newly included solvency clause and the sufficiency of public notice for the auction.

Ratio Decidendi: The court held that the exclusion from bidding was justified due to failure to meet conditions, emphasizing the importance of plea adherence and documentation in tender processes.

Result: Writ petition dismissed.

ORDER :

1. The above writ petition is filed seeking the following relief, which is amended as per order dated 10.07.2023 passed in I.A. No. 2 of 2023:

    “...to issue Writ, order or other direction more particularly in the nature of Writ of Mandamus declaring the action of 3rd respondent in including new clause about solvency in the notification is dated 10.05.2023 in R.C. No. C1/451038/2023, on 24.05.2023, for license to procure of Human Hair from 3rd respondent Temple for a period of Two years, as illegal, arbitrary, violative of principles of natural justice and violative of Articles 14 & 19 of the Constitution of India and consequently direct 3rd respondent to cancel the Tender-cum-public auction held on 24.05.2023 and conduct Tender-cum-re-auction by deleting the said clause and further direct to permit the petitioner to participate in the said Tender-cum-re -auction and pass such other further orders...”

2. In the affidavit, it was contended, inter alia, that petitioner is doing business in the name of ‘Durai Enterprises’ in human hair collection and selling the same. On 10.05.2023, E-Procurement/Tender-cum- Public Auction notification in R.C. No. C1/451038/2023 was issued by respondent No. 3 for collection of human hair from respondent No. 3 Temple, for a period of two years. Public auction was scheduled to be held on 24.05.2023 at respondent No. 3-Temple. As per terms and conditions of the notification, to participate in public auction, one has to pay a challan for Rs.1,180/- and Rs. 15,00,000/- as primary deposit. After finalizing the bid, one has to deposit the amount of one year contract within stipulated time and shall execute necessary documents giving affidavit as stipulated in the regulations. With a view to participate in the public auction, petitioner paid Rs.1,180/- to the credit of respondent No. 3 on 23.05.2023 and got demand draft of Indian Bank, Karaikudi EAB Branch, Tamil Nadu for Rs.15,00,000/- in favour of respondent No. 3. Petitioner took tender schedule form from respondent No. 3 by submitting challan. Petitioner attended the public auction along with demand draft for Rs.15,00,000/- and expressed intention to participate in the public auction.

3. Respondent Nos.4 and 5 also attended public auction. Respondent Nos.4 and 5 quoted bid for Rs.1,35,00,000/-and Rs.1,34,50,000/- respectively and petitioner quoted the bid for Rs.1,50,00,000/-. Respondent No. 3 and his sub-ordinates, in collusion with respondent Nos.4 and 5, did not receive demand draft for Rs.15,00,000/- from the petitioner and necked out him from the Temple and later claimed completion of auction. Impugning the action of respondent No. 3 in not allowing petitioner to participate in public auction, this writ petition is filed.

4. Respondent No. 3 filed counter affidavit. It was contended, inter alia, that petitioner without availing remedy under Section 92 of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 (for short ‘the Act’), approached this Court and on that ground alone, writ petition is liable to be dismissed. Respondent No. 3 is a public religious Temple published under Section 6(a)(ii) and registered under Section 43 of the Act. All leases and licenses relating to the religious and charitable institutions other than agricultural lands are governed by the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and other Rights (other than agricultural lands) Leases and Licenses Rules, 2003 (G.O.Ms. No. 866 Revenue (Endowments-I) Department dated 08.08.2003) (hereinafter referred to the ‘Rules’). As per Rule 3(1) of the Rules, all licenses shall be made by way of Tender-cum-auction on annual advance rental basis. The executive authorities shall also call for tender or auction electronically if the value of the transaction exceeds Rs.10,00,000/-. As per Rule 4(2)(c), in case of licensing of collection of human hair, license period shall not exceed two years. The fee

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