IN THE GAUHATI HIGH COURT (HIGH COURT OFASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Farida Khanom D/o Ahmed Khan – Appellant
Versus
The State Of Assam And 4 Ors – Respondents
WP(C)/5601/2024, WP(C)/5993/2024, WP(C)/4313/2024, WP(C)/4311/2024
WP(C)/3663/2024, WP(C)/5859/2024, WP(C)/3632/2024, WP(C)/4076/2024
WP(C)/4481/2024, WP(C)/3613/2024, WP(C)/5858/2024, WP(C)/3649/2024, WP(C)/3615/2024, WP(C)/4824/2024, WP(C)/5745/2024, WP(C)/5724/2024
Decided on : 29-11-2024
(A) Assam Panchayat Act, 1994 - Sections 105 and 122 - Constitution of India - Articles 38, 243G and 243H - Cancellation of tender process for Haats, Ghats, Fisheries, Pounds etc. for the year 2024-25 - The Cabinet decision to incorporate a viable rate in tenders was upheld, while the extension to existing lessees was found contrary to the Act and Rules - The court emphasized the need for minimal interference by the State Government in the self-governance of Panchayats. (Paras 34, 35, 36)
(B) Writ Jurisdiction - The court reiterated that rights accrue only upon the execution of a formal lease, and mere acceptance of bids does not confer rights. (Paras 36)
JUDGMENT :
Heard Mr. PK Munir, Mr. AM Ahmed, Mr. FU Borbhuiya, Mr. MK Boro, Mr. R Ali, Mr. B Rahman, Mr. S Borthakur, Mr. DA Kaiyum, Mr. MK Hussain, the learned counsels appearing on behalf of the petitioners in the present batch of writ petitions. Also heard Mr. K Konwar, the learned Additional Advocate General, Assam, who is also the Standing Counsel of the P& RD Department, Government of Assam. In addition to that, on behalf of the P & RD Department, Mr. S Dutta appears. Mr. AK Ghose, Mr. A Sarma and Mr. MU Mahmud, the learned counsels appear on behalf of the private respondents in the batch of writ petitions.
2. The instant batch of writ petitions were filed challenging the Notification dated 29.06.2024 issued by the Principal Secretary to the Government of Assam, P & RD Department whereby the process of settlement of Haats, Ghats, Fisheries, Pounds etc. for the year 2024-25 for which various Notice Inviting Tenders were floated were cancelled on the basis of a decision of the Cabinet decision dated 27.06.2024. In addition to that, in some of the writ petitions, the Cabinet decision dated 27.06.2024 had also been assailed. The petitioners herein who have been intimated that they are the highest bidders have also sought for a writ in the nature of mandamus directing the respondent authorities to bring the tender process to a logical conclusion by allowing them to run the settlements.
3. For deciding the dispute(s) involved in the batch of writ petitions, this Court would like to deal with the facts which led to the filing of the batch of writ petitions.
4. The materials on record reveal that the various Anchalik Panchayats under the Assam Panchayat Act, 1994 (for short, the Act of 1994) had issued NITs for settlement of Haats, Ghats, Ferries, Fisheries etc. in the month of May, 2024. Pursuant to the NITs, the petitioners herein along with various other bidders participated in the said bid process and were informed respectively that their bids were accepted and thereby asking the petitioners to do the needful in terms with Rule 47(11) of the Assam Panchayat (Financial) Rules, 2002 ( for short, the Rules of 2002). While the said process was on going, a Notification was issued on 29.06.2024 by the Principal Secretary to the Government of Assam, P & RD Department informing all the concerned that pursuant to a Cabinet decision held on 27.06.2024, the Governor of Assam had cancelled the ongoing process for settlement of Haats, Ghats, Fisheries, Pounds etc., for the year 2024-25 for which the NITs were already floated. In the said Notification, it was also mentioned that until new tenders are floated and finalized, the existing lessees may be given extensions at the settlement value fixed for the year 2023- 24. The reasons for cancellation was also spelt out in the impugned Notification wherein it was mentioned that the decision was taken by the Cabinet on the basis of certain complaints being received at various levels that the small traders, vendors and other sellers in the Haats and Bazaars etc. were often exploited by the bidders who quote exorbitantly high bid prices to grab the lease, and, as such, the Governor of Assam was pleased to make provisions that no settlement shall be made with the bidders who quote more than 10% of the average settled value of the last 3(three) years of these Haats, Ghats, Fisheries, Pounds etc. It was also mentioned that the new NITs would be issued which will include these conditions and would be floated for settlement of the Haats, Ghats, Fisheries, Pounds etc., for the year 2024-25.
5. On the basis of the impugned Notification, various office orders were issued by the Zilla Parishads thereby cancelling the entire tender process. Being aggrieved, the instant batch of writ petitions have been filed seeking the relief as above mentioned.
6. The State of Assam had filed the affidavit-in-opposition justifying the impugned Notification, the details of which, this Court would refer while taking note of the
State of Maharashtra Vs. Reliance Industries Limited reported in (2017) 10 SCC 713
AI
The court upheld the cancellation of the tender process while rejecting extensions to existing lessees, emphasizing the need for adherence to statutory provisions governing Panchayat settlements.
Acceptance of a lesser bid may be permissible but in case of settlement of a market under the aegis of the Anchalik Panchayat and/or Zilla Parishad, the same is ordinarily required to be settled in f....
Process of settlement resulting into the order of settlement in favour of the respondent no. 6 is found to be vitiated one due to taking into account irrelevant factors in the decision making process....
Point of Law : Court should always keep the larger public interest in mind in order to decide whether its intervention is called for or not and it is only when it comes to a conclusion that overwhelm....
The discretionary nature of the approval for lease extension and the importance of maintaining transparency and fairness in distribution of State largesse.
The Panchayat Samiti has the authority to manage ferry ghats through e-auction, overriding claims based on the Land and Land Reforms Manual, ensuring transparency and preventing monopolistic practice....
Section 105 of Assam Panchayat Act, 1994 clearly provides that settlement of a market (hat) shall not exceed one Panchayat Financial Year and that settlement has to be made by inviting tenderers.
The notifications for municipal formation and alteration complied with constitutional mandates and statutory requirements, and the principles of natural justice were not violated.
Failure to challenge a clause in the tender notice during the selection process precludes a party from challenging it later.
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