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2021 Supreme(Pat) 1068

IN THE HIGH COURT OF JUDICATURE AT PATNA
CHAKRADHARI SHARAN SINGH and MADHURESH PRASAD, JJ.
(23.11.2021)
CWJC No. 18205 of 2021
Indradeo Singh Seva Sansthan : Petitioner
Vs.
State of Bihar & Ors. : Respondents

Advocates:
For the Petitioners: M/s Y.C. Verma, Sr. Adv., Ram Kumar Singh.
For the State : M/s Mujtabaul Haque, Manish Kumar.

Headnote:

Government Contract – Work Contract – Non-extension of contract by State – Communication in question does not cast any obligation on concerned authorities to extend period of contract, even if work is found to be satisfactory – Primal purpose of decision of State Government to permit competent authorities to extend period of outsourced work under public private partnership mode is optimal utilization of equipments installed by agencies, other infrastructure created and investments made, for execution of work awarded to them – Decision was taken manifestly on consideration that introduction of advanced technology and management is capital intensive – Petitioner has nowhere stated in writ petition as to what investment it had made and what kind of equipments it had installed for the purpose of execution of work awarded to it – Application dismissed. (Paras 10 to 15)

1990 (Supp) SCC 440 – Distinguished.

CHAKRADHARI SHARAN SINGH, J.:–It appears from the pleadings on record that the State of Bihar has, in policy, decided to outsource certain services for maintenance and functioning of the hospitals in the State e.g. sanitation cleaning, lighting and laundry. The petitioner asserts that it is a registered welfare society and the work for sanitation of hospitals, namely, Sadar Hospital, Bhabhua, Referral Hospital Mohania, Referral Hospital, Ramgarh, Referral Hospital, Aghaura, Primary Health Centres at Bhabhua, Chainpur, Chand, Kudra, Durgavati, Rampur, Bhagwanpur, Nuwao all in the District of Kaimur (Bhabhua) was outsourced to it after a notice inviting tender, pursuant to which it had participated amongst others and had become a success.

2. The work order was issued on 02.09.2020. The agreement was subsequently signed between the Society and the Civil Surgeon-cum-Secretary, District Health Society (DHS for short). Indisputably, the term of agreement was for one year. It was, however, provided in the agreement that in case of satisfactory performance of work, the District Magistrate-cum-Chairman, DHS could extend the period of contract for a maximum period of three years, on recommendation of the Secretary, DHS, Kaimur.

3. It is the petitioner’s case that its performance was found to be satisfactory, in support whereof certificates were issued by the concerned authorities from time to time. However, ignoring the clause in the agreement which required extension of the term of contract for a period of three years, respondents have come out with a notice dated 01.10.2021 uploaded on web portal of the DHS, Kaimur on 06.10.2021 for the work which the petitioner has satisfactorily executed in the hospitals, primary health centers, noted above.

4. In the aforesaid background, the petitioner has filed this writ application seeking quashing of the said notice inviting tender dated 01.10.2021 and a direction to the respondents to allow the petitioner to execute work by extending the period of contract as stipulated in the agreement.

5. A supplementary affidavit has been filed bringing on record a letter dated 27.05.2010, said to have been issued by the Health Department, Government of Bihar under the signature of its Principal Secretary, addressed to all the Civil Surgeons in the State of Bihar, which contains the decision of the State Government to the effect that if work of an Agency under publicprivate partnership mode is found to be satisfactory for a term of one year, the term of contract can be extended for a maximum period of three years so as to facilitate utilization of equipments and other infrastructure put in place by such agency.

6. Mr. Yogesh Chandra Verma, learned Senior Counsel appearing on behalf of the petitioner has submitted that the said decision communicated by the Health Department, Government of Bihar to all the Civil Surgeons is the apparent basis for inclusion of the clause in the agreement providing for extension of term of contract in case work of an outsource agency is found satisfactory. He has referred to certain certificates which have been brought on record to contend that the petitioner’s work has been certified to be satisfactory by the concerned Medical Officers/ Managers. He has drawn our attention to another communication dated 04.10.2012 issued by the Health Department, addressed to the Civil Surgeon, Motihari, wherein the earlier decision of the State Government, as contained in letter dated 27.05.2010, has been reiterated. He has argued that the said communication dated 27.05.2010 is in the nature of guidelines issued by the State Government in relation to extension of the term of contract of the works outsourced for sanitation, lighting and laundry in the hospitals.

7. He has relied on a Supreme Court’s decision in case of Narendra Kumar Maheshwari Vs. Union of India & Ors. reported in 1990 (Supp) SCC 440 to contend that even non-statutory and administrative guidelines issued by the State Government are

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