Petitioner bid for immovable property lacked claim parity with a running concern's bid, disallowing installment payment.

1. The Indian Turpentine and Rosin Company Ltd., Clutterbuck Ganj, Bareilly was a Government undertaking that had been declared sick under the Sick Industrial Companies Act (SICA),1985 (hereinafter referred to as sick Government company). Proceedings for its revival were pending before the Board of Industrial and Financial Re - construction (BIFR). Secretary, Department of Industrial Development of Government of U.P. invited tenders vide memorandum of information (Annexure No.2 to the writ petition) for takeover / sale of the sick Government company. Offers were invited from interested parties for takeover of the sick Government company. Items included in the tender notice consisted of factories; distillery (alcohol) unit and ETP; other land and building consisting of (a) head office and (b) hospital compound.

2. The petitioner before this Court is a partnership firm, which submitted its bid in respect of land and building of (a) head office and (b) hospital compound. The head office land and building included an area of 19260 sq. mts. and its reserved price was fixed at Rs.116.443 lacs. The other item in respect of which the petitioner submitted its bid was the land and building included in the hospital compound ad - measuring 11362 Sq. mts. having reserved price of Rs.67.916 lacs.

3. The advertisement specified that tendering party had to submit bid along with earnest money of 2.5% of the reserve price by way of a bank draft in favour of U.P. Government. Clause (III) of the terms and condition of the advertisement specified general conditions. Clauses 4 and 5 of Clause (III) reads as under: -

"4. The Government reserves the right to reject all or any tender without assigning any reason thereof. The Government also reserves the right to sell all plants / blocks together or any plant / block separately.

5. Payment is to be made as follows: 20% of the amount within one month. There will be moratorium of one year. Remaining amount is to be paid in 3 equal yearly instalments with 14% interest on balance amount."

4. It is apparent that in addition to the bids invited for the head office and hospital compound for which petitioner had submitted its bid, the advertisement also invited bids for distillery (alcohol) unit and ETP for which the reserved price was fixed at Rs.1750.56 lacs.

5. The bids submitted by the petitioner pursuant to the above advertisement was considered by the State Government vide Government Order dated 21.12.2001. In so far as the offer submitted by the petitioner is concerned, the State Government noticed the bid amount for the two heads of property amounting to Rs.158.20 lacs and Rs.82.94 lacs and observed that upon deposit of the entire amount in one lump - sum, the bid of the petitioner be accepted. It is this order of the State Government of 21.12.2001 with which the petitioner company is primarily aggrieved on the ground that Clause 5 (III) providing for deposit of bid money in installment has been modified.

6. The basis of challenge to the decision of the State Government is the fact that in respect of distillery alcohol unit, the State Government permitted the deposit to be made by other bidder M/s Superior Industries of 20% bid amount initially and after one year moratorium deposit the balance amount in three installments. The installments were to be paid along with 14% interest. Clause - 2 of the Government Order dated 21.12.2001 in respect of distillery unit is also reproduced: -

(Editor's note - Vernacular matter omitted)

7. Attention of the Court has been invited to the fact that in res