The State Government has the right to dispose of tendu leaves in a manner it deems fit under S. 12 of the Adhiniyam, and the new conditions imposed in tender notices are valid and reasonable to ensure fair competition.

( 1 ) BY this order M. P. No. 3912/86 P. M. Patel v. M. P. Rajya Laghu Van Upaj (Vyapar Avam Vikas) Sahakari Sangh Maryadit and another is also disposed of M. P. No. 417/86 M. A. Waheed v. M. P. Rajya Laghu Van Upaj (Vyapar and Vikas) Sahakari Sangh Maryadit and another was also heard along with these two petitions but the petition was withdrawn at the stage of hearing. This petition is being mentioned as there may be reference to certain documents which have been filed in that petition and not in these two petitions. In the first petition the petitioner is challenging the tender notice issued by State of M. P. on 8-12-86 inviting tenders for appointment of agents under S. 4 (1) of M. P. Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964 (hereinafter referred to as Adhiniyam), and also the tender notice issued by M. P. Rajya Laghu Van Upaj (Vyapar Avam Vikas) Sahakari Sangh Maryadit (hereafter referred to as Sangh) dated 2-12-1986 inviting tenders for purchase and disposal of Tendu Patta in different units. In the second petition the petitioner is challenging the policy decision of the State Government not to renew the agreement executed in the previous year and for enforcement of renewal Cl. 29 of the petitioner's agreement.

( 2 ) TENDU tree is a wild growth and found in abundance in the State of M. P. Tendu leaves are forest produce which are mainly used for manufacture of bidis after curing them. Tendu Pattas are mostly available in Government forest but they are also available in private land though in much lesser quantity. With a view to regulate in the public interest the trade of Tendu Leaves by creation of State monopoly in such trade M. P. Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964, was enacted. Under S. 3 of the Adhiniyam, the State Government may divide every specified area into such number of units as it may deem fit. Under S. 4 the State Government may, for the purpose of, and trade in, tendu leaves on its behalf, appoint, agents in respect of different units and any such agent may be appointed in respect of more than one unit. The terms, conditions and the procedure for appointment of agent shall be such as may be prescribed. S. 5 restricts purchase or transport of tendu leaves except by the State Government or its officer or agent. Under S. 7 the State Government has to fix price at which tendu leaves shall be purchased by it or its agent from the growers of tendu leaves other than the State Government. The State Government has to set up depots in each unit for purchase of tendu leaves offered by the growers and under S. 9 the State Govt. or its agent has to purchase the tendu leaves offered to them. Every grower of tendu leaves other than the State Government shall get himself registered if the quantity of leaves grown by him during a year is likely to exceed the prescribed quantity. Every manufacturer of bidis and every exporter of tendu leaves have to get themselves registered under S. 11. Tendu leaves purchased by the State Government or its officer or agent shall be sold or otherwise disposed of in such manner as the State Government may direct under S. 12. The State Government has been empowered under S. 19 to make rules to carry out all or any of the provisions of the Act Accordingly, M. P. Tendu Patta (Vyapar Viniyaman) Niyamavali, 1965, (hereafter referred to as the Rules) have been framed. Agents have to be appointed under R. 3 by inviting , applications. The application shall be in Form-A and a person or party appointed as an agent shall furnish declaration in Form-B.

( 3 ) THE season for the collection of tendu leaves commences each year by the end of April till the break of monsoon in middle of June. Tendu tree's have to be pruned in February/march in order to get better leaves. Under R. 7 of the M. P. Tendu Patta (Vyapar Viniyaman) Nivamawali, 1965. Government used to invite tenders for the purchase of tendu leaves on the basis of standard bag price, subject to the terms and condition