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2004 Supreme(Online)(Chh) 21

CHATTISGARH HIGH COURT
Fakhruddin, J.
Manju Agro Pvt. Ltd. (M/s.) v. State of Chhattisgarh and Others
W. P. No. 1709 of 2003



Government procurement processes must ensure fairness and adherence to legal norms, avoiding arbitrary exclusions.

Headnote:(A) Constitution of India - Article 226/227 - Writ Petition - Mandamus sought to restrain respondents from issuing work orders and to command implementation of earnest money exemption for Small Scale Industrial Units as per Chhattisgarh Store Purchase Rules, 2002. The petitioner’s tender not considered due to lack of earnest money deposit. The court found procedural impropriety in decision-making and emphasized fairness in tender processes. (Paras 4, 14-19)

(B) Judicial Review - Rights of individuals towards government largess and necessity for fair administration in tender processes are highlighted. (Paras 85-95)

Facts of the case:
The petitioner, a registered small-scale unit, was denied participation in tenders due to the non-deposit of the security amount despite claiming entitlement to an exemption, which the State did not grant.

Findings of Court:
The previous denial was an error, the court allowed the opening of the petitioner’s tenders to assess their viability against others.

Issues: Whether the rules allowing exemption were appropriately applied to the petitioner.

Ratio Decidendi: The Court ruled that the decision-making process was flawed due to procedural impropriety and a failure to recognize the petitioner's rights.

Result: Petition allowed.

Table of Content
1. writ petition for mandamus on tender issue. (Para 1 , 2)
2. government rules and exemptions for tenders. (Para 3 , 4 , 6 , 9 , 10)
3. procedural impropriety and fairness. (Para 12 , 14 , 16)
4. ruling on tender opening and procedural compliance. (Para 17 , 19)

1. By this writ petition filed under Art. 226/227 of the Constitution of India , petitioner, prays for issuance of a writ in the nature of mandamus or any other appropriate form of direction / order restraining the respondents Nos. 1 to 17 from issuing work / purchase orders to respondents No. 32 to 35. Further prayer of the petitioner is to the effect that respondents No. 1 to 31 be commanded to implement the clause of earnest money exemption to Small Scale Industrial Unit of Chhattisgarh State as per the Clause 4.7 of Chhattisgarh State Store Purchase Rules, 2002. Petitioner has also further prayed that tender of the petitioner be opened as the same has not been opened.

2. The petitioner is a manufacturer of Daliya and ready - to - eat food. It is a Small Scale Industrial Unit duly registered. Copy of the certificate of the registration has been filed vide Annexures P - 29 and P - 30. As such, it has been established and is working at Raipur. It is submitted that respondent No.2 published an advertisement on 4-4-2003 (Annexure P - 1) in Hindi daily Navbharat inviting tenders for 2003-2004 for supply of ready - to - eat food in various Anganwadi Centers mentioning therein that the tenderers should deposit Rs.300/- for purchase of tender form. It is also stated that the petitioner deposited the said amount for purchase and obtained the tender from vide Annexure P - 2. It is also submitted that after fulfilling the formalities, he submitted the tender form duly filled to respondent No.3 on 7-5-2003 at Raipur. It is also submitted that similar advertisements were issued inviting tenders for supply of ready - to - eat food to various districts. In response to the advertisement published in Nav Bharat for the districts of Mahasamund, Durg, Rajanandgaon, Kanker, Jagadalpur, Dantewara, Bilaspur and Raipur, petitioner obtained tender forms and those were submitted before the respective authorities between 8-5-2003 to 31-5-2003. Copies of those advertisements have been filed vide Annexure P - 1 to P - 35. It is submitted that these tenders were made opened in 2003 and the petitioner was informed vide letter dated 28-5-2003 (Pg. No. 144) that the petitioner's tender was not considered for non - deposit of security amount. The contents of the Letter dated 28-5-2003 is quoted below :
(Editors Note: - Vernacular matter omitted.)

3. Counsel for the petitioner submitted that the tender form was in folder form. The Chhattisgarh Store Purchase Rules, 2002 have been framed by the State in its Executive Powers and they were notified in the official gazette on 15-1-2003 (Annexure P - 38), which have been made applicable w.e.f. 1-12-2002. The petitioner submits that he had approached the Industries Department and had written a letter on 5-5-2003 to the General Manager, DIC, Raipur, for issuance of a competency certificate. The said letter has been received by the DIC Raipur on the same day. The contents of the said letter are quoted below :
"To
The General Manager
D. I. C., Raipur
Sub : - Application for issue of competency Certificate
Dear Sir,
We hereby applying for issue of Competency Certificate for participating tender floated by the Department of Women and child Development, Chhattisgarh, and, competency certificate is required for getting exemption from deposit of earnest money while participating tender as per para 4.7 of Chhattisgarh Government's Bhandar Kray Niyam 2002.
You are requested to please issue the same and oblige.
Your favourable action will be highly appreciated.
Thanking you,
 For Manju Agro Pvt. Ltd.,
 Sd/-
 (Authorised signatory)."











4. On this letter reproduced above, the General Manager, DIC, informed the petitioner that the provision to issue the desired certifi













































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