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2022 Supreme(Ori) 211

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R. SARANGI, SAVITRI RATHO, JJ.
Dillip Kumar Sahoo - Petitioner
Versus
State of Odisha and others - Opp. Parties
W.P.(C) No. 7051 of 2022
Decided On : 09-05-2022

Advocates Appeared:
For the Petitioner: M/s. S.S. Rao, L. Raj K. and B.K. Mohanty.
For the Opp. Parties :Mr. P.P. Mohanty, Addl. Government Advocate, Mr. Sankar Prasad Pani.

The competent authority has the power to grant an extension of time to the highest bidder, and no right accrues to the next highest bidder unless intimated by the authority.

Headnote:

Tender - Sand Quarry - OMMC Rules, 2016 - Rule 27(9)

Fact of the Case:

The petitioner, 2nd highest bidder, seeks direction for the issuance of 'Intimation to Successful Bidder' in his favor as the highest bidder failed to deposit the security amount in due time. The highest bidder sought an extension, and the petitioner claimed that his bid should have been canceled.

Finding of the Court:

The court found that the highest bidder complied with the terms and conditions by depositing the security amount within the extended period, and no right accrued in favor of the petitioner. The court dismissed the writ petition.

Issues: The main issue was whether the highest bidder's failure to deposit the security amount within the specified time should result in the cancellation of the bid and the quarry settlement in favor of the petitioner.

Ratio Decidendi: The court held that the competent authority had the power to grant an extension of time to the highest bidder, and no irregularity was committed in doing so. The petitioner's claim could not sustain as no right accrued in his favor, and the highest bidder had already complied with the terms and conditions.

Final Decision: The writ petition was dismissed, and the interim order was vacated. No costs were awarded.

JUDGMENT :

B.R. Sarangi, J.

The petitioner, being the 2nd highest bidder, by means of this writ petition, seeks direction to opposite party no.3 to issue “Intimation to Successful Bidder” in his favour in terms of Rule 27(9) of the Odisha Minor Mineral Concession Rules, 2016, in respect of Pankapal-II Sand Quarry, as the highest bidder could not be able to deposit the security amount in due time.

2. The factual matrix of the case, in brief, is that a notice bearing no. 4029 was issued on 31.12.2021 by opposite party no.3 inviting applications from the intending bidders to participate in the auction of different Sand Quarries, including Pankapal-II Sand Quarry (Bramani River Sand Belt) of Mouza-Pankapal, Khata No.224, Plot No. 1089, Area Ac. 12.30 for a period of five years under the provisions of Odisha Minor Mineral Concession Rules, 2016 (for short “OMMC Rules, 2016”) and Odisha Minor Mineral Concession (Amendment) Rules, 2017. The details of the Sairat Sources, which were notified to put to auction are given hereunder:-

Sl. No.

Sairat Case/Year

Sairat Source Name

Mouza

Khata No.

Plot No.

1.

01/2021

Digambarpur Balighat

Digambarpur

68

407

2.

02/2021

Pankapal-I Balighat

Pankapal

224

1089

3.

03/2021

Pankapal-II Balighat

Pankapal

224

1075

2.1 Pursuant to the said notice, the petitioner made his application in Form-M, as prescribed under Rule 27 (4) of the OMMC Rules, 2016, for grant of quarry lease by submitting all the necessary supporting documents, besides depositing the requisite fees, and participated in the auction process.

2.2 There were all total eight applicants for Pankapal-II Sand Quarry. The details of the applicants, the rate quoted by them towards additional charges and their position in the tender are as follows:-

Sl. No.

Name

Amount

Position

1.

Jayanta Ku. Jena

612

7th

2.

Satya Sundar Pal

Cancelled due to deficiency in documents

3.

Dillip Kumar Sahoo

1855 (H2)

2nd

4.

Gyana Ranjan Mohapatra

729

5th

5.

Sribacha Mohapatra

638

6th

6.

Laxmidhar Jena

1215

3rd

7.

Daitari Dhal

2401 (H1)

1st

8.

Hemanda Sahoo

1009

4th

2.3 The tender was opened on 18.01.2022 for all the sand quarries. Opposite party no.4 was declared as the successful bidder considering his highest bidding amount of Rs.2401/-(H1) for Pankapal-II sand quarry (Bramani River Sand Belt) of Mouza-Pankapal, Khata No.224, Plot No. 1089, Area Ac. 12.30. As a consequence thereof, opposite party no.3 issued Intimation to Successful Bidder under Form-F bearing No. 255 dated 19.01.2022. The petitioner was found to be the 2nd highest bidder (H2) for Pankapal-II sand quarry with a bidding amount of Rs.1855/-, which is close to the successful bidder.

2.4 On receipt of “Intimation to Successful Bidder” opposite party no.4 was to deposit a sum of Rs.42,51,872/- towards security deposit as prescribed under Rule 27 (7) of the OMMC Rules, 2016 within a period of 15 days, i.e. before 03.02.2022. In the Intimation to Successful Bidder (ISB), it was specifically required that “proof of deposit of the aforesaid amount along with acceptance should reach the undersigned within fifteen days of the date of issuance of this letter failing which this intimation shall stand automatically revoked without any further notice and the earnest money shall stand forfeited”. Instead of depositing such amount within the time specified, opposite party no.4 sought extension of time. Accordingly, opposite party no.3 granted 10 days time to opposite party no.4, to comply with the terms and conditions of deposit. At this point of time, the present petitioner, being the 2nd highest bidder, approached this Court claiming that since the highest bidder, i.e. opposite party no.4 could not deposit the amount wi

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