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High Court Of Madhya Pradesh
P. V. Dixit, C. J. and S. P. Bhargava, J.
CHHOTABHAI JETHABHAI PATEL AND CO.A FIRM - Appellant
Versus
STATE OF MADHYA PRADESH - Respondents
Misc. Petn. 153 Of 1965
Decided On : 04/27/1965
The first sub-section of section 19 lays down that the State Government may, subject to the condition of previous publication make rules to carry out all or any of the provisions of the Act. The other sub section provides that 'in particular and without prejudice to the generality of the foregoing powers such rules may provide for all or any of the matters' enumerated in that sub-section. It is true that in sub-section (2) the sale or disposal of Tendu leaves is not one of the matters enumerated. But the absence of such enumeration does not take away the power of the State Government under subsection (1) to make rules with regard to the sale and disposal of Tendu leaves. AIR 1945 PC 156 relied on.
[Para 13]
(2) Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964 (M. P.) - Ss. 19 & 12 - power of the State Government in respect of sale or disposal of Tendu Patta-instead of issuing directions may make rules.
Under section 12 of the Act the State Government may direct the manner in which Tendu leaves may be sold or disposed of. But it does not prohibit the State Government from making rules for this purpose under section 19. [Para 13]
But after the making of the rules under section 19, the Government lost the power to grant a tender 'in violation of the Rules in exercise of its power under section 12, 1920 AC 508 relied on. [Para 20]
(3) Tendu Patta (Vyapar Viniyaman) Niyamaval 1965 (M.P.) - R.7 - manner prescribed for making tenders-is mandatory-tenders not made according rules-are illegal.
(4) Interpretation of Statutes - rules made for protection of public interests - should strictly be complied with-are mandatory.
It is a well settled rule of construction of statutes that statutory provisions which regulate the manner in which the Government or public officials shall exercise the power vested in them and which are intended for the protection of public interests and private rights are to be construed as being mandatory rather than directory. [Para 14]
Where by the rules made under a statute a power given by the statute is to be exercised in a cartain manner, that power should be exercised in that manner and in no other manner. Those rules are to be treated for all purposes of construction or obligation exactly as if they were in the Act AIR 1954 SC 592 & AIR 1961 SC 751 relied on. [Para 19]
When the discretion of the Government in the matter of grant of licences and privileges forming lucrative source of revenue is strictly controlled by statutes and rules, then it is not open to the Government to dispose of the liceces or privileges arbitrarily and in a manner contrary to the rules. [Para 19]
Any enders made and accepted contrary to and not in conformity with the manner laid down in Rule 7 are invalid and illegal. The Government could not accept such tenders under the powers given by section 12. [Paras 19 & 20]
(5) Constitution of India - Art. 226 - locus standi to move a petition-tender illegally accepted- person desirous to get the licence may challenge the illegal acceptance of tender.
When the tender submitted by the respondent firm has been accepted by the Government and the petitioner desires to obtain the licence granted by such acceptance, he has the locus standi to challenge the validity of the acceptance of the tender. [Para 22]
( 1 ) THIS order will also govern the disposal of Misc. Petitions Nos. 154, 156 and 156, all of 1965.
( 2 ) BY these four applications under Article 226 of the Constitution Messrs. Chhotabhai Jethabhai Patel and Company, a partnership firm engaged in the business of manufacture and sale of bidies, questions the validity of tenders submitted by the respondent Messrs. Vrajlal Muljibhai and Company, Bilaspur, for the purchase of tendu leaves collected by Government or by its officers or agents in four units of certain ranges of North Bilaspur Forest Division, and seeks a direction restraining the respondents from acting in any manner on those tenders. The petitioner also prays for the issue of a direction commanding the opponents to entertain and consider the lenders it had submitted for the purchase of tendu leaves from the same units for which the aforesaid respondent had given its tenders.
( 3 ) THE matter arises thus. In 1964, the Madhya Pradesh Tendu Patta (Vyapar viniyaman) Adhiniyam, 1964, (hereinafter referred to as the Act) was enacted, "for regulating in the public interest the trade of Tendu Leaves by creation of State monopoly in such trade" Section 5 of the Act provides that on the issue of a notification under Sub-section (3) of Section 1 bringing the Act into force in any area, no person other than the State Government, or an officer of the Slate government authorized in writing in that behalf, or an agent in respect of the unit in which the tendu leaves have grown, shall purchase or transport tendu leaves. Section 3 enables the State Government to divide the area in which the Act has been brought into force into such number of units as it may deem fit. Section 4, inter alia, lays down that the State Government may for the purpose of purchase of, and trade in, tendu leaves on its behalf, appoint agents in respect of the different units. Under Sections 6 and 7 the tendu leaves are purchased from the growers by the Government or its authorized agents at a price fixed by it in consultation with an Advisory Committee constituted under Section 6. Section 12 then prescribes: "tendu leaves purchased by the State Government or by its officer or agent, under this Act shall be sold or otherwise disposed of in such manner as the State Government may direct. " section 19, which is also material here, gives to the State Government the power to make rules. Sub-section (1) of that section says that : "the State Government may, subject to the condition of previous publication, make rules to carry out all or any of the provisions of this act. " sub-section (2) of section 19 then provides that-"in particular and without prejudice to generality of the foregoing powers such rules may provide for all or any of the following matters, namely * * * * * in the category of matters enumerated in Sub-section (2) the disposal of tendu leaves by the State Government or by its officers or agents is not included
( 4 ) THE Rules framed by the Government in the exercise of its power under Section 19 of the Act bear the title "the Madhya Pradesh Tendu Patta (Vyapar Viniyaman)Niyamavali, 1965 (hereinafter referred to as the Rules ). Bute 7 deals with disposal of tendu leaves. That rule, so far as it is material here, is as follows : "7. Disposal of Tendu leaves (i) Tendu leaves purchased or likely to be purchased from persons mentioned in items (b) and (c) of Sub-clause (ii) of Clause (d) of Section 2 and collected or likely to be collected from government land by Government or by its officer or agent shall ordinarily be sold or otherwise disposed of by tender on such terms and conditions as are specified in the Tender Notice issued by the government and in the Form of Tender. 2. The Tender Notice shall be published in the official gazette and advertised in newspapers and in such other manner as the Government may deem fit, inviting sealed tenders from persons or parties desirous of purchasing Tendu leaves collected or likely to be collec
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