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2021 Supreme(Ker) 950

IN THE HIGH COURT OF KERALA AT ERNAKULAM
SHAJI P. CHALY, J.
Malathi Prabhakaran, President, Kilimanoor Grama Panchayat – Petitioner
Versus
Ombudsman for Local Self Government Institutions – Respondent
W.P. (C) No. 18871 of 2010
Decided On : 25-11-2021

Advocates:
Advocate Appeared:
For the Petitioners: Sri. Nagaraj Narayanan, Sri. Benoj C. Augustin, Sri. G.R. Panicker, Sri. Rajan Velloth, Sri. Saijo Hassan, Sri. A.S. Sabu, Sri. Prathap Pillai.
For the Respondents: Sri. V.G. Arun, Sri. P. Benny Thomas, Sri. P. Gopinath, Sri. T.R. Harikumar, Sri. A.K. Jayasankar Nambiar, Sri. Jaiby Paul, Sri. A. Muhammed Raffi, Sri. E.K. Nandakumar, Sri. Prasad Chandran, Sri. K.K. Rajeev, Sri. Siby Mathew, Sri. Siju Kamalasanan, Sri. B. Premnath E.

Point of law: Master of the tender is the tender inviting authority and it is for the said authority to decide whom to be chosen to carry out the contract.

Headnote:

Code of Civil Procedure, 1908 - Kerala Panchayat Raj (Contract) Rules, 1996 -Rule 4 and 6 - Kerala Panchayat Raj Act, 1994 - Section 271F and 254 - Rule 3 - Respondent has got himself impleaded in complaint allegedly on ground of public interest - President and members of have filed writ petition challenging order passed by Ombudsman for Local Self Government Institutions in Complaint where by Ombudsman directed to recover loss suffered on account of contract awarded to Electricals during from petitioners - Whether any manner of interference is required to order passed by Ombudsman.

Finding of the Court:

Panchayat is also vested with certain constitutional obligations as empowered under Section 243G of the Constitution of India, to protect the interest and welfare of the people within its territorial limits, and the power envisioned thereunder was conferred by the State Government through the Act, 1994 to function itself as a self governing institution and to discharge the duties, responsibilities and obligations in terms of the constitutional guarantees. Apart from the same, Schedule 11 of the Constitution of India empowers the Panchayat to carry out the activities prescribed thereunder, which includes the development of roads, rural electrification etc. and therefore, the Panchayat was duty bound to ensure the quality of the products supplied to it.

- None of contentions put forth by Panchayat as well as Secretary were taken into account by Ombudsman before arriving at conclusions - it is clear that order passed by Ombudsman is violative of principles of natural justice and without understanding true implications of law in regard to award of contract - It is a well settled position in law that master of tender is tender inviting authority and it is for said authority to decide whom to be chosen to carry out contract - Merely because one of bidders have quoted lowest price that would not in any manner compel Panchayat to accept said tender – Court is more so since there are clear rules contained under Rules 1996 in matter of awarding of contract - There is no case for anyone or Ombudsman that Panchayat committee has violated Rules, 1996 or any of provisions of Act, 1994 in awarding contract to Electricals.

Result: Writ petition allowed

JUDGMENT :

SHAJI P. CHALY, J.

1. Petitioners, who are the President and the members of the Kilimanoor Grama Panchayat, have filed this writ petition, challenging Ext. P18 order dated 06.03.2010 passed by the Ombudsman for the Local Self Government Institutions in Complaint No. 950 of 2010, whereby the Ombudsman directed the Kilimanoor Grama Panchayat to recover the loss suffered on account of the contract awarded to M/s. Sivaram Electricals during the year 2008 from the petitioners.

2. Brief material facts for the disposal of the writ petition are as follows:

    Petitioners were respondents 4 to 17 in complaint No. 950 of 2010 filed by the third respondent Ravi Varma K. Manager, Kerala State Industrial Enterprises Limited, Thiruvananthapuram, which was originally filed against the Secretary of the Kilimanoor Grama Panchayat second respondent, the President of the Panchayat and the Chairman of the Standing Committee for the welfare of the Panchayat. Subsequently, the petitioners were implemented in their personal capacity. The 4th respondent, namely one S. Krishnan Kutty Nair, Kilimanoor, Thiruvananthapuram, has got himself impleaded in the complaint allegedly on the ground of public interest.

3. The subject matter leading to the complaint are as follows:

    The Kilimanoor Grama Panchayat has invited tenders for the supply of the single tube set 1 x 40 w with aluminum body, choke, starter, power factor, improvement, capacitor with tube, mode BJSAL 2400 or equivalent with bend pipe, clamp, nuts, bolt, 3 meter wire as per Ext. P1 notification dated 28.07.2008 published in the newspapers. Three persons responded to the tender notification and submitted their quotation, true copies of which are produced as Exts.P2 to P4. However, the Panchayat found that the above quoted rates for single tube were highly excessive and therefore, the Panchayat in its meeting adopted a resolution, as per Decision No. I(1) dated 16.08.2008 not to accept the quotations, as they were exorbitant in nature and accordingly, it was decided to call for fresh tenders, evident from Ext. P5 minutes. Consequently, Ext. P6 notification dated 16.08.2008 was published in the newspaper, pursuant to which 5 persons responded and their bids were as follows:

 

Single Tube Set

Bend Pipe

Alfa Electronic

980/825

158

KSIE

1200/840/767

148

Rajeev Charitable Society

864

125

Sivaram Electricals

635/685/735

525

Thampy's Electricals

1090

230

    True copies of the bids are produced as Exts.P7 to P11.

4. The Panchayat, thereafter, directed the bidders to submit their samples for personal verification, inspection and for satisfaction of their quality. Out of five persons, only 3 persons namely Rajeev Charitable Society, Sivaram Electricals and Thampy's Electricals submitted their samples for inspection. The samples were inspected by the members of the Panchayat committee as well as the concerned Assistant Engineer. On the basis of such inspection, it was found that the samples supplied by M/s. Sivaram Electricals was of the best quality and accordingly, the Panchayat committee has taken Ext. P12 resolution at its meeting held on 25.08.2008 and, accepted the tender submitted by M/s Sivaram Electricals. The lowest rate quoted for the tube was that of Sivaram Electricals. Therefore, according to the petitioners, the Panchayat committee was fully satisfied that the bend pipe sample supplied by Sivaram Electricals was of better quality and the sample model provided by them was of different nature and quality from the other two samples.

5. Further, the price quoted by M/s. Sivaram Electricals was for a length of 1½ meters bend pipe, while the earlier price quoted by them was for 1 meter bend pipe. The petitioners also contended that the very low price quoted by the other bidders were unrealistic and therefore, the same wo

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