IN THE HIGH COURT OF GAUHATI AT ITANAGAR BENCH
MANASH RANJAN PATIIAK, J.
M.L. ENTERPRISES P.O & P.S - Appellant
Versus
STATE OF ARUNACHAL PRADESH - Respondent
WP(C) No. 145 (AP) of 2015 With IA OM 81 (AP) 2015
Decided on : 21-04-2017
Contract Act - Section 2.1 – Violation – Assistance – Evidence - As roads in vicinity of Alamo Township including road from Village were in very deplorable state, a concept paper was forwarded by Executive Engineer Public Works Division to Department of Planning, Government of Arunachal Pradesh for necessary sanction from Government – Held, Award of government contracts through public auction/public tender is to ensure transparency in public procurement, to maximize economy and efficiency in government procurement to promote healthy competition amongst renderers to provide for fair and equitable treatment of all renderers and to eliminate irregularities interference and corrupt practices by authorities concerned - This is required by Article of Constitution and any violation of this process any government contract awarded by statutory bodies and instrumentalities of State are liable to be set aside and quashed – Petition allowed
MANASH RANJAN PATIIAK, J.
1. Heard Mr. Dicky Panging, learned counsel, appearing for the petitioner. Also heard Mr. Kardak Ete, learned Additional Advocate General, assisted by Ms. Laxmi Hage, learned Government Advocate for the State respondent Nos. 1 to 6 and Mr. Tony Pertin, learned counsel for the private respondent No. 9.
2. The petitioner herein is a registered farm and listed as Class-I Contractor with the Arunachal Pradesh Public Works Department (APPWD, in short), having its registered office at Aalo, West Siang District, Arunachal Pradesh and is represented by its constituted attorney Shri Nykar Rike, resident of Kombo Papak Village, Aalo, who is also represented the petitioner firm in the case in hand.
3. In the present case, the petitioner had challenged the illegal and arbitrary action of the respondent authorities in allowing the execution of the work "improvement and construction of the road from Pakam-Tinali to Jirdan Tri-Junction and Pakam-II PM6SY (Prime Minister's Gramya Sadak Yojana) Road to Tyemro area at Aalo"by the private respondent Nos. 8 and 9, without floating any tender, hereby denying other eligible farms to participate in the tender process, without any technical specifications as well as without obtaining any administrative approval and expenditure sanction, in order to misappropriate public money.
4. As the roads in the vicinity of Aalo Township including the road from Pakam-Tinali to Kombo Village were in very deplorable state, a concept paper was forwarded by the Executive Engineer, Aalo, Public Works Division to the Department of Planning, Government of Arunachal Pradesh for necessary sanction from the Government. Accordingly, the State Government incorporated the said work of "improvement and construction of the road from Pakam-Tinali to Jirdan Tri-Junction and Pakam-II PM6SY Road to Tyemro area at. Aalo" in the Annual Operating Plan : 2014-15, under the Special Plan Assistance Schemes (SPA, in short).
5. It is stated that the Government of India is providing Special Plan Assistance for the special projects to the special category States of the Country that includes the seven North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand as these States have low resource base and unable to mobilise resources for their developmental needs and as per the said Scheme of Assistance, i.e. the SPA, the Central Government treats 90% of the amount borrowed by those States as grants and 10/0 as loans.
6. It is also stated that the Adviser (NE), Planning Commission on 11.10.2010, had issued necessary guidelines with regard to such SPA, that were duly received by the Secretary (Planning), Government of Arunachal Pradesh on 25.10.2010, wherein it was specifically provided that there shall be mandatory tendering for all SPA projects for transparency and competitive bidding.
7. The petitioner stated that from the information, which is operative in the official website of the Department of Planning, Government of Arunachal Pradesh that an amount of Rs. 425.70 Crores was released by the Ministry of Finance, Government of India as 90% Central share of SPA against 126 nos. of projects under SPA as submitted by the State Government during the year 2014- 15 and that the State Government, in the Department of Planning, vide order dated 30.03.2015 released an amount of Rs. 473.00 Crores (including 90% Central share of Rs. 425.70 Crores and 10% mandatory State share of Rs. 47.30 Crores) for those 126 nos. of projects of the respective departments clarifying that tendering for all SPA projects sanctioned for the year 2014-15 is mandatory for transparency and competitive bidding as per the guidelines of the Government of India. It is stated that amongst those 126 projects, an amount of Rs. 4 Crores was released for the said work of "improvement and construction of the road from Pakam-Tinali to Jirdan Tri-Junction and Pakam-II FMCS)/ Road to Tyemro area at Aalo",
8. As the Notice Inviting Tender (N
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