IN THE HIGH COURT OF JUDICATURE AT PATNA
K. VINOD CHANDRAN, CJ. and RAJIV ROY, J.
CWJC No.13358 of 2015
(25.1.2024)
Nabin Bharos Choudhary ... Petitioner
vs.
State of Bihar & Ors. ... Respondents
Government Contract – Tender – Appointment of Transporting-cum-Handling Agents – Unilateral modification of rate by Corporation – Managing Director of Corporation' passed an illegal order by unilaterally taking decision and directing petitioner to work on lower rate as quoted by another tenderer which also prompted respondents to demand the amount on the basis of rates so found – As such same will not be binding on him – Corporation has no right to demand the amount – Managing Director abused power conferred upon him in passing order with ulterior motive – Impugned order quashed – Writ petition allowed with cost of Rs. 50,000/-, imposed upon Bihar State Food and Civil Supply Corporation which will be payable to petitioner. (Paras 29 to 32)
Rajiv Roy, J. – Heard the parties.
2. The present petition has been preferred for the grant of following reliefs: –
(i) for issuance of a writ in the nature of writ of Certiorari or any other appropriate writ, order or direction, quashing that part of the reasoned order bearing memo no. 9848 dated 10.08.2015 issued under the signature of Managing Director, Bihar State Food and Civil supplies Corporation Ltd (henceforth for short, ‘the Corporation’) whereby the rate approved for payment for specified distances have been modified unilaterally by the respondent corporation in contravention with the terms of the written agreement with the petitioner;
(ii) for issuance of a writ in the nature of writ of Certiorari or any other appropriate writ, order or direction, quashing the letter no 1403 dated 10.08.2015 issued under the signature of District Manager, State Food Corporation, Samastipur whereby the new rates applicable subsequently selected Transporting to cum Handling Agent namely Deepak Kumar has been made applicable to the petitioner also, detrimental to the interest of the petitioner and without any notice or hearing to him.
3. The facts in narrow compass is/are as follows:
4. ‘The respondent Corporation’ published an advertisement inviting tenders for appointment of Transporting-cum-Handling agents in the district of Samastipur. Pursuant thereto, three persons including the petitioner herein submitted their respective tenders. Thereafter the offers were opened and out of the three persons, the tenders of two persons namely, Rajendra Prasad Gupta and Deepak Kumar were rejected for cogent reasons by the District Transport Committee (henceforth for short, ‘the Committee’) in its meeting held on 11.11.2013 under the Chairmanship of the District Magistrate, Samastipur.
5. Thereafter, the tender process proceeded to its conclusion and the petitioner was selected for being appointed as the Transporting cum Handling agent by ‘the respondent Corporation’ which was approved in the meeting of District Transport committee held on 14.11.2013 under the Chairmanship of the District Magistrate, Samastipur.
6. The aforesaid decision was accepted and implemented by ‘the respondent Corporation’. Accordingly, the Chief Receiver (i.e. Pramukh Adhiprapti) at the headquarter of ‘the respondent Corporation’ vide letter bearing no. 11150 dated 14.12.2013 instructed the District Manager, State Food Corporation, Samastipur to appoint the petitioner as the Transporting-cum-Handling agent and to enter into an agreement with him.
7. In pursuance of the direction issued by the Headquarters of ‘the respondent Corporation’, an agreement was entered into with the petitioner on 16.12.2013 specifying the different terms and conditions of the agreement.
8. It is relevant to mention here that the agreement specifically provided the approved rate for different slabs of distance for the purpose of transportation. The agreement mentioned that any revision of rates by ‘the respondent Corporation’ would be binding on the petitioner, if he agrees to it by its express consent or by implied action.
9. As stated, the tender of Deepak Kumar was rejected in the year 2013 itself on certain counts including on the ground of black listing. It appears that ‘the Corporation’ in the year 2015 reviewed his case and passed an order contained in memo no. 9848 dated 10.08.2015 issued under the signature of its Managing Director by which it was decided that the case of the Deepak Kumar was wrongly rejected and thus direction was issued for his appointment side by side with the petitioner as Transporting cum Handling agent. The order further recorded that the rates of Deepak Kumar being lesser than the petitioner, the said rates shall be applicable on the petitioner too.
10. In the light of the aforesaid order dated 10.08.2015, a consequential order was issued by the District Manager, Stat
The Managing Director of the Corporation acted within his authority under the Articles of Association to impose salary recovery, and the petitioner was afforded due process.
Government must exercise discretion in contract awarding fairly and rationally, without arbitrary discrimination against bidders.
Retrospective recovery of amounts by public authorities must adhere to established tender conditions and principles of natural justice.
Retrospective recovery of amounts under an executive order is impermissible without following due process and the principles of natural justice.
Adopting a different view in matter in facts and circumstances of case would not be permissible in eye of law.
The court emphasized that the award of contracts should be in public interest and not interfered with unless there is evidence of malafide or irrationality.
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