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Manipur High Court
T. N. R. TIRUMALPAD, J.
Nameirakpam Pishak Singh
Versus
Forest Officer, Manipur Forest, Department
Civil Writ Appln. No.3 of 1960
Decided On : 11-08-1961
TENDER NOTICE - ACCEPTANCE OF LOWEST TENDER - RIGHT OF CONTRACTOR - MANDAMUS - WRIT OF MANDAMUS - CONSTITUTIONALITY OF TENDER CLAUSE - DISCRIMINATION - MALA FIDE - PUBLIC BODY - GENERAL FINANCIAL RULES - CONTRACT RULES - INTERPRETATION - JUDICIAL REVIEW - CONTRACT LAW - INDIAN CONTRACT ACT - CENTRAL GOVERNMENT FINANCIAL RULES - UNION TERRITORY - FINANCIAL STATUS OF CONTRACTOR - ACCEPTANCE OF TENDER WITHOUT ASSIGNING REASONS - RECORDING OF REASONS - ARBITRARY ACTION - COUNTER OFFER - PRIVATE CONTRACT - MALICIOUS MOTIVE - DISMISSAL OF WRIT APPLICATION - NO COSTS.
Fact of the Case:
Petitioner submitted the lowest tender for the supply of timber to the Manipur Administration in response to a tender notice. However, the Administration canceled the tender notice and issued a fresh one due to errors in the tenderers' quotations and the need to include additional species of timber. The petitioner again submitted a tender, but his quotation was not accepted. He challenged the cancellation of the first tender notice, the validity of the new tender clause excluding firms and companies, and the acceptance of another tenderer's quotation for round logs only, alleging mala fide and discrimination.
Finding of the Court:
1. A tender notice is an invitation for offers, and the submission of quotations by contractors does not create any legal rights or obligations. 2. The Administration has the discretion to accept or reject any tender, even the lowest one, based on various factors such as the financial status and experience of the contractor. 3. The addition of a new clause in the second tender notice excluding firms and companies was not discriminatory as it did not affect the petitioner's individual tender. 4. The Administration's acceptance of the lowest tender for round logs only was not arbitrary or mala fide, as it was justified by the Public Works Department's requirement for round logs and the potential wastage involved in square logs. 5. The tender clause reserving the right to accept any tender without assigning reasons was not ultra vires the Constitution, as it did not prevent the Administration from recording reasons for not accepting the lowest tender, as required by the Central Government Financial Rules.
Issues: 1. Whether the cancellation of the first tender notice was valid. 2. Whether the new tender clause excluding firms and companies was discriminatory. 3. Whether the Administration's acceptance of the lowest tender for round logs only was arbitrary or mala fide. 4. Whether the tender clause reserving the right to accept any tender without assigning reasons was ultra vires the Constitution.
Ratio Decidendi: 1. A tender notice is merely an invitation for offers, and the submission of quotations does not create any legal rights or obligations. 2. The Administration has the discretion to accept or reject any tender, even the lowest one, based on various factors such as the financial status and experience of the contractor. 3. The addition of a new clause in the second tender notice excluding firms and companies was not discriminatory as it did not affect the petitioner's individual tender. 4. The Administration's acceptance of the lowest tender for round logs only was not arbitrary or mala fide, as it was justified by the Public Works Department's requirement for round logs and the potential wastage involved in square logs. 5. The tender clause reserving the right to accept any tender without assigning reasons was not ultra vires the Constitution, as it did not prevent the Administration from recording reasons for not accepting the lowest tender, as required by the Central Government Financial Rules.
Final Decision: The writ application was dismissed, but without costs.
The petitioner applies for a writ of mandamus or other appropriate writ against respondents 1 to 3.
2. On 16-1-1960, the Forest Officer of the Manipur Administration called for tenders from contractors, by his notice Annexure-I, for extraction and for supply of timber from Block MXVI of the Government forest to be submitted to the Chief Forest Officer on or before 23-1-1960. The selected contractor had to cut the trees marked by the Forest Department and then reduce them into round and square logs and to supply them to the Forest Department at certain fixed points between 9th and 19th milestones on the I.T. Road. The tenderers had to mention in the tender the number of buffaloes they had in their possession, their working experience, financial background etc. Clause 5 of the notice stated that the Administration reserved the right to accept any tender without assigning any reasons therefor. Clause 11 provided that the Administration may make insertion of fresh clauses in the tender notice from time to time which may not however be to the disadvantage to the contractor. We are not concerned with the other clauses in the notice. On 22-1-1960 an amendment was made to the notice mentioning the species of timbers to be supplied, vide - Annexure-A/2. Various persons including the petitioner submitted tenders. The petitioners tender for both round logs and square logs was the lowest, as will be seen from Annexure-A/3.
3. It is stated now by the second respondent the Chief Forest Officer, who has filed the counter statement on behalf of respondents 1 to 3 in paragraph 2 that it was ascertained that most of the tenderers did not quote the names of species of timbers correctly and that the items for which the tenderers quoted rates varied from one to another and were not comparable and so the Manipur Administration considered it necessary to issue a fresh tender notice. A comparison of Annexure-A/2 which mentions 5 kinds of timber with the list of tenders submitted as seen from Annexure-A/3 would show that this is statement of the first respondent is a fact. It will be seen from Annexure-A/3 that the petitioner himself quoted rates for Uningthou, 2nd logs Ucham and 3rd logs Ucham, but not for 4 other different kinds of timber - Leihao, Tolhao, Tal and Sham Kuhi.
The second respondent has further stated in the counter statement that the public Works Department required seven species of timber of which two species - Pareng and Tairen had been omitted to be included in the first tender and further that the P.W.D. wanted that a clause should be inserted in the tender notice to exclude firms, companies, and Co-operative Societies and persons in joint names making tenders. Hence, without accepting the tenders in respect of the first notice, the Administration directed the Chief Forest Officer to issue a fresh tender notice. Annexure-A/4 is the said letter of the Administration which however does not mention the reasons mentioned in the counter statement of the second respondent for issuing the fresh notice.
4. Any way, a fresh tender notice Annexure-A/5 was issued on 29-1-1960, incorporating the changes mentioned by the second respondent and calling for quotations for 7 species of timber in round logs and square logs. In the re-tender the petitioner as well as the 4th respondent and some others submitted tenders. It was seen that the average rate quoted by the 4th respondent was Rupee 1.46 nP. for round logs and Rupee 1.96 nP. for square logs, while the petitioners quotation was Rupee 1.50 nP. for round logs and Rupee 1.62 nP. for square logs. The tenders of the other tenderers quoted higher rates. The Manipur Administration directed the Chief Forest Officer to accept the lowest rates quoted by the 4th respondent for round logs on the ground that the Principal Engineering Officer, P.W.D. required only round logs and the remaining tenders were not accepted, vide Annexures-A/6 and A/7.
5. Now the petitioners contentions in this writ petition ar
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