2000 Supreme(HP) 134
High Court Of Himachal Pradesh
KAMLESH SHARMA,K.C.SOOD
SUDESH ENTERPRISES - Appellant
Versus
STATE OF H.P. - Respondent
CW No. 81 of 2000
Decided On : 06/06/2000
Mr. Tarlok Chauhan, Advocate, for the Petitioner(s); Mr. Sanjay Karol, Advocate General with Mr. M.L. Chauhan, Deputy Advocate General, for the Respondent(s).
Headnote:CONSTITUTION OF INDIA - Article 14 - Natural Justice - Arbitrariness - Petitioner firm has suffered. liabilities by having accepted the supply order from respondent NO.2 - Therefore, the said supply order could not be cancelled arbitrarily without affording an opportunity to petitioner firm of being heard - Thus the action of respondents being unfair, unreasonable and arbitrary- Is violative of Article 14 of the Constitution
BUREAU OF INDIAN STANDARDS - Standard 7 - Sample of Bitumen Emulsion- Has to be drawn within 24 hours after its delivery and tested within seven clays from the date of drawing, unless otherwise specified- Sample was sent for analysis has to be analyzed within seven days from date of its drawing- Not analyzed - Sample for all reasons may have become unfit for analysis after such a long period- Therefore, with-holding the payment for material already supplied- Is unreasonable, unfair and arbitrary.
Kuldip Chand Sood, J.—The petitioner, by this writ petition, pray for quashing of the orders Annexures P 12/A to PW 12/K and such similar orders whereby lifting .of the material from the petitioner by the Government functionaries has been stayed indefinitely. Directions are also sought to the respondents to release the payment of the material which has already been supplied by the petitioner to the respondent No, 2 and for lifting of the remaining material in respect of the orders which were placed by the respondent No. 2 with the petitioner.
2. The undisputed facts of the case are: Petitioner is a manufacturer of Bitumen Emulsion, (commonly known as Cold Tarcoal). The unit of the petitioner is located at Solan in the State of Himachal Pradesh and is registered with the Directorate of Industries. This unit is also registered with the National Small Industries Corporation Ltd., w.e.f. May 31, 1999. The Government of Himachal Pradesh (Rl) through Controller of Stores, H.P. (R3) invited various Units to enter into rate-contract for the supply of Bitumen Emulsion in an open tender competition. The petitioner firm was awarded the rate contract for the supply of Bitumen Emulsion (Cationic type) for roads, vide order dated October 24, 1998 (Ann. P3), after completion of the formalities. The contract was to remain valid till v September 30, 1999. The period of contract was further extended for another three months vide orders dated October 21, 1991 (Ann. P3/1). The quality of Bitumen Emulsion produced by the firm was tested by the Regional Testing Centre, Ministry of Industries, Okhla, New Delhi (Ann. P4) and was found to be in accordance with the standard laid down.
3. The petitioner firm, in terms of the rate contract, supplied Bitumen Emulsion to the various consignee(s) of the respondent Nos. 1 and 2 pursuant to the bulk orders placed with the firm by the respondent No. 2. The petitioner firm applied for the grant of BIS licence to the Bureau of Indian Standard. The petitioner firm was granted ISI licence on July 6, 1999 in respect of Bitumen Emulsion produced by it after it had been tested by the Central Road Research Institute and found to conform to the Bureau of Indian Standard (BIS).
4. Respondent No. 2 issued various supply orders for the supply of 950 metric tonnes of bitumen emulsion under the rate-contract. The supply was to be made to the various consignees of the respondent Nos. 1 and 2 at different destinations. Out of the total quantity of 950 metric tonnes, under various supply orders, 370 metric tonnes of bitumen emulsion was supplied by the petitioner firm and accepted by the respondents No. 1 and 2.
5. Condition No. 7 of the Terms and Conditions of the rate-contract stipulated that 90% payment shall be released on production of Railway receipt or goods receipt and the balance 10% to be paid within 30 days of the receipt of bitumen emulsion by the consignee at the destination. In terms of clauses 2 and 3 of the rate-contract, supply of the material is to be made by the petitioner firm within 30 days of the supply order subject to the condition that the material is inspected by an authorised person of the consignee(s).
6. The case of the petitioner firm is: (a) The payment in respect of the Bitumen Emulsion supplied by the firm and accepted by the various consignees has not been made to the petitioner firm for no reason at all; (b) The petitioner firm was willing and able to supply the remaining material subject matter of the various supply orders of respondent No. 2 but the material could not be despatched for want of inspection of the material by the authorised person, the petitioner though was ready and willing to get the material inspected by the authorised officers of the consignee(s). The petitioner addressed various communications to the respondents for the lifting of the material order of which was placed by the petitioner, such communication(s) evoked no response from the respondents; (c) On December 23