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2009 Supreme(Gau) 588

GAUHATI HIGH COURT
B.D.Agarwal, J.
Pani Ram Kalita -Appellant
Versus
State of Assam and Ors. -Resopndent
WP(C) No(s). 2161, 2162 and 2182 of 2009
Decided On : 20-08-2009

Advocates Appeared:
A.K.Bhuyan, Aslam, B.Gogoi, D.Saikia, D.Senapati, M.Bhuyan, P.Bora, P.Hazarika, R.Dubey, U.Raj Saikia

The main legal principle established in the judgment is the importance of transparency, fairness, and non-discrimination in the tender process, emphasizing the need for wide publicity of tender notices to ensure a competitive and transparent bidding process.

Headnote:

Tenders - Nimati Kamalabari Ferry Service - Control and Management of Ferries Rules, 1968 - Rule 4, Rule 16 - The court discussed the legality of withdrawing the 1st NIT and issuing the 2nd NIT for the ferry service. It highlighted the absence of statutory requirement for publishing NITs in newspapers, the need for wide publicity of tender notices, and the implications of re-tendering after opening of tenders. The court emphasized the importance of transparency, fairness, and non-discrimination in the tender process and declared the 2nd NIT as unsustainable in law.

Fact of the Case:

The case involved the challenge to the withdrawal of the 1st Notice Inviting Tenders (NIT) for Nimati Kamalabari Ferry Service and the issuance of the 2nd NIT. The petitioners contended that the 2nd NIT was arbitrary and illegal, while the respondents argued that it was necessary for revenue augmentation.

Finding of the Court:

The court found that there was no statutory requirement for publishing NITs in newspapers, but emphasized the need for wide publicity of tender notices to ensure transparency and fairness. It noted the implications of re-tendering after opening of tenders and highlighted the importance of considering the publicized rates/offers. The court concluded that the 2nd NIT was unsustainable in law and directed the settlement of the ferry service on the basis of the 1st NIT.

Issues: The key issues included the legality of withdrawing the 1st NIT, the necessity of wide publicity of tender notices, the implications of re-tendering after opening of tenders, and the fairness and transparency in the tender process.

Ratio Decidendi: The court's decision was based on the absence of statutory requirement for publishing NITs in newspapers, the need for wide publicity of tender notices, and the implications of re-tendering after opening of tenders. It emphasized the importance of transparency, fairness, and non-discrimination in the tender process.

Final Decision: The court declared the 2nd NIT as unsustainable in law and directed the respondents to proceed to settle the Nimati Kamalabari Ferry Service on the basis of the 1st NIT.

1. A common question, i.e., whether the Notice Inviting Tenders dated 27.5.2009 for Nimati Kamalabari Ferry Service for the year 2009-2010 can be set aside on the ground of non-publication of 1st NIT dated 19.1.2009 in the newspapers has been raised in all the writ petitions. Hence, all the three writ petitions were heard analogously and being disposed of by this common judgment.

2. Heard argument of Shri M. Bhuyan, Shri B. Gogoi and Shri. P. Bora, learned counsel for the writ petitioners respectively. Argument on behalf of respondents were advanced by Shri A.K. Bhuyan, learned counsel. I have also perused the pleadings of the parties as well as relevant files produced by learned counsel for the respondents.

3. Facts necessary for disposing of writ petitions are that as usual the Executive Engineer, Inland Water Transport Department, Dibrugarh issued NIT dated 19.1.2009 under memo No. ESF-17/2008-09/2667 for as many as 8(eight) Ferry services (This NIT is hereinafter referred to as the 1st NIT'). In pursuance of the aforesaid 1st NIT as many as 9, (nine) tenders were submitted and the tenders were opened on 4.2.2009. In the previous year the Nimati Kamalabari Ferry Service (briefly N-K Ferry Service) fetched highest bid of Rs. 41 lacs. As per the 1st NIT the highest bid has been quoted at Rs. 74 lacs; followed by 65 lacs, 60 lacs and so on. However before the settlement of the N-K Ferry Service the sitting lessee Shri Gautam Kalita challenged the 1st NIT dated 19.1.2009 on the ground that the concerned authorities illegally refused to extend his lease for another three years. The said writ petition was registered as WP(C) No. 387 of 2009 and dismissed on 9.2.2009. Soon thereafter 5 persons lodged a common complaint before the Commissioner, IWT on 12.2.2009 alleging that N-K Ferry Service was being settled without any publicity. After this formal complaint the news was also reported in local dailies and another group of 10 persons also prayed for cancellation of 1st NIT, submitting a representation to the Principal Secretary, IWT Department on 7.2.2009. On the basis of these complaints, representations the Government issued another tender notice for the said N-K Ferry Service on 18.5.2009 under memo No. ESF-18/2008-09/375, superseding the 1st NIT. The aforesaid NIT dated 18.5.2009 was published in local newspapers on 27.5.2009. Petitioners are challenging this 2nd NIT being arbitrary, discriminatory, illegal and without jurisdiction.

4. Learned counsel for the petitioners contended that once tenders are opened and become public the Government is restrained and estopped from inviting fresh tenders, as it would be contrary to the concept of 'confidential bidding'. Learned counsel for the petitioner also submitted that if there was material irregularity in issuing 1st NIT the respondents ought to have recalled the entire NIT dated 19.1.2009, but instead of doing that the respondents have picked up only N-K Ferry Service for resale. In this way, as contended by the learned counsel for the petitioners it is an act of approbate and reprobate by the State that cannot be permitted. According to the learned counsel appearing in WHO No. 2182 of 2009 and WHO No. 2162 of 2009 the 2nd NIT has been issued at the instance of sitting lessee and/or with pre-conceived mind to settle the ferry service with a particular person of its choice. It may be mentioned here that the learned counsel appearing in WP(C) No. 2161 of 2009 do not subscribe to this view since he is the father of the sitting lessee. However, all the learned counsel for the writ petitioners were of identical views that publishing tender notice in newspapers is not a sine qua non under the relevant rules and more particularly there was no reason for withdrawing the 1st NIT since as many as 9 tenders were submitted and the highest being the offer of Rs. 74 lakhs in comparison to previous bidding of Rs. 41 lakhs. Learned counsel for the petitioners also submitted that legality of the 1s


























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