IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
Kalyan Rai Surana, J.
Nagaon District Federation of Fishermen Coop. Socoety Ltd. Rep. by Its Secretary – Petitioner
Versus
The State of Assam, Rep. by the Commissioner and Secretary to the Govt. of Assam, Fishery Department, and Ors. – Respondents
WP(C)/5561 & 6152 of 2017
Decided On : 18-01-2022
Constitution of India, 1950 - Article 12 and 226 - Evidence Act - Section 114 III.(g) – Tender - Rejection of bid - Bidding process - Writ petitions arise from same order, at the instance of the learned counsel for the appearing parties, the matter had been analogously heard. In both the writ petition settlement of fishery to the private respondent, namely, Pub-Jaluguti Cooperative Fishery Society Ltd., has been challenged and petitioners are seeking a direction upon the respondent authorities to settle the fishery in reference to the petitioners - whether or not they would want to recover the said cost from the concerned officials by following due process of law.
Finding of the court :
It is not possible to presume that the said highly placed officers had not examined NIT conditions or Bid Submission Form, but it appears that said authorities had utterly disregarded paramount public interest of getting higher revenue for State - Petitioner in W.P.(C) had quoted bid value of Rs.7,00,000/-, but the respondent authorities had settled fishery with private respondent at Rs.4,24,242/-, thereby causing the State exchequer a loss of Rs.2,75,758/- per year and during 5 years this writ petition is pending, cumulative loss to State exchequer comes to Rs.13,78,790/- original records of the bidding process of fishery in reference produced by the Deputy Commissioner, Nagaon has been examined - A faint attempt was made to project that bid of petitioners was excessively higher than government value, which is not acceptable for two reasons, firstly, because bid was not rejected on the said count and secondly, said petitioner was immediate previous settlement and he is presumed to have taken a wise business decision - Therefore, for illegally ousting petitioners from competition by arbitrary exercise of power by illegally interpreting para/row no. ‘7 (unga)’ of bid application form as per their whims and fancies, Fishery Department, Government of Assam shall pay a cost of Rs.25,000/- (Rupees Twenty five thousand only) each to petitioner in both writ petitions, which shall be paid within a period of one month from date of service of certified copy of this order at Office of Secretary to Government of Assam, Fishery Department [respondent no.2 in W.P.(C)]. It is, however, left open to wisdom of State to take a decision whether they would want to recover said cost from concerned officials by following due process of law.
Result : Writ petitions allowed
JUDGMENT :
Heard Mr. M. Choudhury, learned counsel for the petitioner in W.P.(C) 5561/2017 and Mr. K. Singha, learned counsel for the petitioner in W.P. (C) 6152/2017. Also heard Mr. R. Talukdar, learned Government Advocate, representing State respondent and Mr. A. Sarma, learned counsel for the settlement holder of the fishery in question, namely, Pub-Jaluguti Cooperative Fishery Society Ltd., arrayed as respondent nos. 4 in W.P.(C) 5561/2017 and respondent no. 5 in W.P.(C) 6152/2017. None appears on call for respondent no. 5 in W.P.(C) 5561/2017.
2. As both writ petitions arise from same order, at the instance of the learned counsel for the appearing parties, the matter had been analogously heard. In both the writ petition settlement of fishery to the private respondent, namely, Pub-Jaluguti Cooperative Fishery Society Ltd., has been challenged and the petitioners are seeking a direction upon the respondent authorities to settle the fishery in reference to the petitioners.
3. The Deputy Commissioner, Nagaon had issued a “Notice Inviting Tender” (NIT for short) dated 13.02.2017 for settlement of No. 4 Sonai Nadi Part-II Min Mahal of Nagaon, fixing the minimum revenue of Rs.3,52,118/-. The said fishery is falls partly in Morigaon District and partly in Nagaon District from where it originates. It is projected that the said 60% category fishery (Min Mahal) is settled under the Rule 12 of the Fishery Rules. It is projected that 6 (six) bidders had participated in the tender process. The bid of the respondent no. 5 in W.P.(C) 5561/2017 was the highest at Rs.7,51,105/-, and that the bid of the petitioner in W.P.(C) 6152/2017 was second highest at Rs.7,00,000/-, but both the highest and second highest bids were rejected on the ground that the tender/bid was not accompanied with the call deposit receipt for a sum of 15% of the bid amount. The petitioner in W.P.(C) 5561/2017 had quoted the fourth highest bid of Rs.5,52,991/-, but his bid was rejected on the ground that the neighbourhood certificate was not issued by competent authority, i.e. Revenue Circle. Nonetheless, vide order dated 24.08.2017, impugned herein, the respondent authorities had settled the said fishery with Pub-Jaluguti Cooperative Fishery Society Ltd., although its bid was 5th highest for a sum of Rs.4,24,242/-. Therefore, the petitioners in both the writ petitions have approached this Court by filing this writ petition under Article 226 of the Constitution of India with a prayer to set aside and quash the settlement order dated 24.08.2017 and for a further direction upon the respondent authorities to settle the said fishery with the petitioners.
4. The Assistant Commissioner, Nagaon had filed his affidavit-in-opposition on behalf of the Deputy Commissioner, Nagaon (respondent no. 3) and claimed that the petitioner in W.P.(C) 5561/2017 ought to have deposited call deposit for Rs.82,949/-, being 15% of his bid value. In W.P.(C) 6152/2017, the Joint Secretary to the Government of Assam, Fisheries Department had filed an affidavit-in-opposition on behalf of respondent no. 2, i.e. the Additional Secretary to the Government of Assam, Fisheries Department, stating, inter alia, that the third, sixth and seventh highest bidder did not submit the call deposit for required amount and that the first and fourth highest bidders had nor deposited any call deposit for which their respective bids were held to be invalid. It was further stated that the second highest bidder i.e. the petitioner in W.P.(C) 6152/2017 did not submit the neighbour certificate from the competent authority, viz., the Revenue Circle. Therefore, the fishery was settled with the 5th highest bidder. In their affidavit-in-reply, the petitioner in W.P.(C) 6152/2017 had taken a stand that the petitioner had submitted neighbourhood certificate issued by the Assistant Registrar of Cooperative Societies, Morigaon (Annexure-4) and it was also stated that in the tender clause no such requirement was mentioned.
Brahmaputra Part II Mach Mahal Samabai Samity Ltd. v. State of Assam
Khoraghat Gulihara Fishery Co-operative Society Ltd. v. State of Assam & Ors.
M/s. Kachudola Fishery Co-operative Society Ltd. v. The State of Assam & Ors.
Manash Padmabari Jiniram Fishery Cooperative Society Ltd. V. State of Assam & Ors.
Point of Law : A certificate issued by such an authority carries with it a presumption under Section 114 III.(e) – “That judicial and official acts have been regularly performed.
The court established that in matters of public revenue settlements, the highest financial bid must be prioritized unless there are valid and justifiable grounds for rejection that comply with the ap....
Rule 12 of Assam Fishery Rules, 1953 has prescribed that a 60% category fishery is to be settled with special category of Cooperative Societies, Non-Government Organisations and Self Help Groups cons....
Order of settlement - Tender Process - The only other valid bidder, Society did not challenge order of settlement - In view of such position, assailment made on aspect of neighbourhood by two petitio....
The rejection of bids based on conditions not stipulated in the Notice Inviting Tender or the Assam Fishery Rules, 1953 was held to be based on irrelevant considerations. The bids of the Petitioners ....
The main legal point established in the judgment is that the settlement process for a fishery must adhere to the requirements specified in the relevant rules and tender notice. The court emphasized t....
It is settled position of law that power of judicial review of administrative action is intended to prevent arbitrariness, irrationality or unreasonableness or bias or mala fide.
Under the powers which can be traced to Regulation 16 and Regulation 155 of the Assam Land and Revenue Regulation, 1886 read with Section 6 of the Indian Fisheries Act, 1897 that enables a Deputy Com....
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