GAUHATI HIGH COURT
B.P.Katakey, J.
Enjil Choudhury -Appellant
Versus
Assam Fisheries Development Corporation & Ors. -Resopndent
WP(C) No. 5184 of 2010
Decided On : 01-09-2011
Constitution of India, 1950 - Article 226 - Money deposit in form demand draft - Terms and conditions supplied by Corporation - Assam Fishery Development Corporation Ltd - Petitioner made earnest money deposit form of demand draft - Respondent deposited earnest money form of call deposit - Though tender papers submitted by petitioner and respondent were found be in order in all other respect except deposit earnest money form of demand draft by petitioner settlement fishery for period (seven) years was made in favour of respondent with effect from the financial vide order rejecting offer of petitioner on ground that tender paper was found to be defective for making earnest money deposit in form demand draft - Hence present petition –Held, Now well settled that scope of judicial review would also apply to exercise of contractual powers by Government bodies in order prevent arbitrariness or favor items however with inherent limitations in exercise of such power judicial review - While State or instrumentality of the State is guardian of its finance it is expected to protect financial interest of State or instrumentality - Petitioner filed writ petition challenging the settlement made in favor respondent no doubt true that Court would refused to exercise its discretion and would not grant relief writ petitioner even entitled same writ petition suffers from vices of undue delay or latches - Apex Court keeping in view involved in that case refused to grant relief though it was found that action respondent authority was arbitrarr - principle laid down Apex Court in said decision however not applicable in and circumstances case - Petition allowed
The process for settlement of Berbhangi Chora Fishery, amongst others, was initiated by the Manging Director of Assam Fishery Develoment Corporation Ltd. (in short the Corporation) by issuing the Notice Inviting Tender (in short NIT) dated 06.04.2010 fixing 22.4.2010 as the last date of submission of tender with certain conditions stipulated in the tender notice, amongst others, requiring the tenderers to deposit 15% of the minimum value fixed by the Corporation for the first year as earnest money and also submission of tenders in the prescribed form, to be obtained from the Corporation's office, wherein certain information including the information relating to the name of the bank, call deposit number and date of the call deposit submitted towards the earnest money deposit were required to be furnished. The petitioner, the respondent No.3 and 6 (six) others submitted their tenders quoting different amount. While the petitioner offered Rs. 1,71,7777-per year, the respondent No. 3 offered Rs. 1,65,000/- per year. The other tenderers offered the amount, which are less than the offers of the petitioner and the respondent No.3. The petitioner made the earnest money deposit in the form of demand draft. The respondent No.3 deposited the earnest money in the form of call deposit. Though the tender papers submitted by the petitioner and the respondent No.3 were found to be in order in all other respect except the deposit of the earnest money in the form of demand draft by the petitioner, the settlement of the fishery for a period of 7 (seven) years was made in favour of the respondent No.3 with effect from the financial year 2010-11 vide order dated 7.6.2010, rejecting the offer of the petitioner on the ground that Ms tender paper was found to be defective for making earnest money deposit in the form of demand draft. Hence the present petition.
2. I have heard Mr. A. K. Sarma, learned counsel for the petitioner, Dr. B. Ahmed, learned standing counsel appearing for the respondent Nos. 1 and 2 and Mr. D. K. Sarma, learned counsel appearing for the respondent No.3.
3. Referring to the conditions in the NIT and also the prescribed form in which the tender paper is to be submitted by a tenderer, it has been submitted by the learned counsel for the petitioner that the tender paper submitted by a tenderer can be rejected as defective only if there is violation of the conditions of the NIT or the detailed terms and conditions supplied by the Corporation and not otherwise, hi the case in hand, according to the learned counsel, there was neither any stipulation in the NIT nor in the detailed terms and conditions supplied by the Corporation requiring deposit of earnest money in any form like the call deposit, demand draft, bankers cheque, etc., and hence the petitioner's tender papers cannot be rejected on the ground that the earnest money was deposited in the form of demand draft issued by a bank, by taking advantage of a stipulation in the prescribed form supplied by the Corporation where the name of the bank issuing the call deposit as well as the call deposit number and date are required to be mentioned. The learned counsel submits that such stipulation in the form cannot be treated as a condition for submission of tender papers having not been specifically mentioned in the terms and conditions of the tender, more so, when there is no indication relating to cancellation of the tender papers submitted by any tenderer, if such earnest money is not deposited in the form of call deposit. The learned counsel further submits that even assuming that there is requirement for making the earnest money deposit in the form of call deposit, such requirement being not essential condition of eligibility but merely ancillary or subsidiary with the main object to be achieved by the condition, the tender papers submitted by the petitioner cannot be rejected on the ground of making deposit of earnest money in the form of dema
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