Back
2003 Supreme(All) 868
IN THE HIGH COURT OF ALLAHABAD
M. KATJU, R. S. TRIPATHI
UTTAR PRADESH BIRI EVAM PATTA UDYOG SAMITI - Appellant
Versus
U. P. FOREST CORPORATION - Respondents
C. M. W. P. 12634 Of 2003
Decided On : 04/22/2003
RAVI KANT CHADHA, SHAKIL AHMAD ALMI, V.K.SINGH
The autonomy of administrative authorities in making decisions and the discretion of administrative authorities in administrative matters.
Headnote:
Tendu Patta - Auction Conditions - U.P. Tendu Patta (Vyapar viniyaman) Act, 1972, Section 4, 5 - Rules U.P. Tendu Patta (Vyapar viniyaman) Niyamawali, 1972, Rule 3, 8, 9 - The court discussed the appointment of agents by the State Government for purchase and trade in tendu leaves, the conditions for sale and transportation of tendu leaves, and the conduct of the auction. The court emphasized the autonomy of the U.P. Forest Corporation in making decisions unless mala fide, and the discretion of administrative authorities in such matters.
Fact of the Case:
The petitioners challenged the auction conditions set by the U.P. Forest Corporation for the sale of tendu leaves, alleging that the conditions were arbitrary and designed to drive small traders out of trade.
Finding of the Court:
The court found that the auction was held in a transparent manner by a Higher Power Committee and that the action of the respondents was an administrative action with special reasons for resorting to a distress/clearance sale.
Issues: The issues revolved around the alleged arbitrary auction conditions and the conduct of the auction by the U.P. Forest Corporation.
Ratio Decidendi: The court emphasized the autonomy of the U.P. Forest Corporation in making decisions unless mala fide, and the discretion of administrative authorities in such matters.
Final Decision: The writ petition was dismissed.
( 2 ) HEARD learned counsel for the parties.
( 3 ) THE petitioner No. 1 is a society registered under the Societies Registration Act and the petitioner No. 2 is a trader who purchases tendu leaves and manufactures bidi in the name and style of Shiva Biri Works. The petitioner no. 3 is a small trader and he deals in tendu leaves. He collects tendu leaves and exports it to the manufacturers of bidi. Prior to enactment of U. P. Tendu Patta (Vyapar vlniyaman) Act, 1972 trade in tendu patta was uncontrolled and unregulated. For the first time, through the aforesaid enactment the State Government nationalized the trade in tendu leaves. Bidi is manufactured from tendu leaves. Section 4 of the Act pertains to appointment of agents by the State Government for purchase and trade in tendu leaves on its behalf in respect of different units. It also enables the State Government to appoint one agent for more than one unit. Under section 5 of the Act, no person shall sell tendu leaves to any person other than the state Government or an officer of the State government authorized by it in that behalf or an agent in respect of the unit in which the leaves are grown. No person other than such Government officer or agent shall purchase tendu leaves from any person other than such Government officer or agent, or collect tendu leaves except under certain conditions mentioned in para 12 of the petition. Under Section 5 (2), the State Government or an officer of the State Government authorized by it in than behalf may impose certain terms and conditions, for the sale and transportation of tendu leaves. As stated in para 15 of the petition, the State Govt. has nominated the U. P. Forest Corporation as its agent. The State Government has also framed rules known as U. P. Tendu Patta (Vyapar viniyaman) Niyamawali, 1972. Rule 3 of the rules provides for appointment of agent. Rule 8 prescribes the manner for disposal of tendu leaves. According to it, tendu leaves procured by the State Government can be sold otherwise by tender on such terms and conditions are specified in the tender notice issued by the State Government and the tender form. Rule 9 (2) directs that the tender notice shall be advertised in newspapers and all such other manner as the State Government may deem fit inviting sealed tenders from the persons registered under sub-section (2 ). Under rule 9 (4) state that there shall be separate tender for each unit. Rule 9 (5) requires that every tender shall be accompanied by a treasury challan showing cash deposit under the head "revenue Deposit" or a demand draft in favour of the Conservator of Forests/ divisional Forest Officer concerned of any branch of State Bank of India or nationalized bank, equal to an amount specified in the tender notice to be deposited as earnest money. Rule 9 (6) further empowers the State government to accept or reject all or any of the tenders so received without assigning any reason therefore. Rule 9 (7) provides that if the tenders received for a unit are not considered acceptable, the State Government may appoint as purchaser for such unit any person on such terms and conditions as may be mutually agreed. Under Rule 9 (9) the successful tenderer or successful bidders, as the case may be, shall be appointed as purchaser for the particular unit and the entire quantity of tendu leaves collected or likely to be collected from such unit or such lesser quantity as may be offered to him by the State government its officer or agent in such unit, shall be purchased by him.
( 4 ) IT is alleged in para 25 of the petition that there is
