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2026 Supreme(Gau) 1009

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Manish Choudhury, J.
M/s Pub Nasatra Fishery Co-operative Society Limited, A registered Co-Operative Society represented by its Secretary - Petitioner
Versus
The State of Assam, represented by the Additional Secretary to the Government of Assam - Respondent
Writ Petition (C) 10 of 2025, Writ Petition (C) 706 of 2025
Decided On : 26-03-2026

Advocates Appeared:
For the Petitioner:Mr. S. Kataki, Advocate
For the Respondent:Mr. P. Sharma, Standing Counsel, Mr. S.R. Baruah, Junior Government Advocate, Ms. P. Chakraborty, Advocate.

Tender disqualification must adhere strictly to statutory rules, excluding arbitrary criteria. A co-operative society's corporate identity shields it from the personal liabilities of its members. Additionally, revenue demands for leased public land are unjust where the state fails in its duty to ensure encroachment-free possession.

Headnote:(A) Rules and Regulations - Settlement of natural water bodies - Tender processes - Validity of requirements - Executive instructions that supplement statutory rules cannot introduce arbitrary disqualification criteria - Statutory provisions govern eligibility - (Paras 29, 31)

(B) Corporate Identity - Legal personality - A registered society as a body corporate is a distinct legal entity separate from its members - Personal liabilities of an office-bearer cannot be imputed to the society to disqualify its bid - (Para 33)

(C) Administrative Liability - Revenue collection - The state entity responsible for leasing land is under a statutory obligation to deliver possession of the leasehold free from encroachment - Demanding revenue arrears for periods where the lessee was prevented from accessing the land due to state-acknowledged encroachment is arbitrary and unjust - (Paras 37, 38)

Facts of the case:
The litigation involved two separate grievances regarding the operation and settlement of public water bodies. In the first matter, a co-operative society challenged its exclusion from a competitive tendering process, which was based on the absence of a caste certificate for its office-bearer and an alleged financial default of said office-bearer in a private capacity. In the second matter, a lessee challenged administrative demands for revenue arrears, arguing that the leased premises were heavily encroached upon by third parties, preventing any profitable operation, despite the administration being fully aware of the illegal occupation.

Findings of Court:
The court held that administrative authorities cannot impose eligibility conditions not specified in the secondary legislation governing the sector. It further affirmed that a registered society's legal status as a corporate entity creates a veil between the entity and its members' personal actions. Regarding the revenue dispute, the court found that it is inequitable for the state to demand payment for the use of resources when it fails to discharge its duty to provide clear, usable possession of the asset.

Issues: The central questions were whether a tenderer can be disqualified based on criteria not established in the governing rules, whether the personal financial delinquency of an individual officer can invalidate a corporate bid, and whether the state can demand revenue from a lessee for periods during which the leased area remained encroached upon.

Ratio Decidendi: Administrative actions must remain within the four corners of the applicable rules; instructions cannot override statutory gaps with arbitrary requirements. The distinction between a corporate entity and its members must be maintained to prevent unfair prejudice. Furthermore, the state’s right to collect revenue presumes the fulfillment of its obligation to provide clear and peaceful possession of the leased entity.

Result: Petitions allowed; impugned orders and notices set aside.

Table of Content
1. procedural compliance in government fishery tender and settlement processes. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9)
2. state authority's obligation to provide encroachment-free land for leased fisheries. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18)
3. arbitrary rejection of tenders based on unstated criteria or incorrect interpretation. (Para 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34)
4. unjustified revenue demands when the state fails to deliver possession. (Para 36 , 37 , 38 , 39)

JUDGMENT :

MANISH CHOUDHURY, J.

1. The two writ petitions – W.P.[C] no. 10/2025 and W.P.[C] no. 706/2025, preferred under Article 226 of the Constitution – are in respect of two separate fisheries, which are located in Barpeta district of Assam. The fishery involved in the writ petition, W.P.[C] no. 10/2025 is No. 81 Mandiakur Fishery and the fishery involved in the other writ petition, W.P.[C] no. 706/2025 is No. 75, 76 and 77 Rowmari Group Fishery [hereinafter referred to as ‘Mandiakur Fishery’ and ‘Rowmari Group Fishery’ respectively, at places, for ease for reference].

2. As an issue involved in the writ petition, W.P.[C] no. 10/2025 is related to the subject-matter involved in the other writ petition, W.P.[C] no. 706/2025, both the writ petitions are taken up together for final consideration at the request of the learned counsel for the parties in both the writ petitions.

3. Mandiakur Fishery is a 60% category fishery and as per the provisions of Rule 12 of the Assam Fishery Rules, 1953, as amended [‘the Fishery Rules’, for short], the State Government in the Fishery Department is the settling authority for a 60% category fishery. On the other hand, the Rowmari Group Fishery is a 40% category fishery and as per Rule 8 of the Fishery Rules, 1953, the jurisdictional Deputy Commissioner or the Additional Deputy Commissioner in case of Sadar Sub-Divisions and the Sub-Divisional Officers in case of other Sub-Divisions, as the case may be, is the settling authority for 40% category fisheries. Therefore, for Mandiakur Fishery, the State Government in the Fishery Department is the settling authority and for Rowmari Group Fishery, the jurisdictional Deputy Commissioner [presently, District Commissioner], Barpeta is the settling authority.

4. Before dilating on the issues involved, the factual backgrounds leading to the institution of the two writ petitions are required to be exposited first.

W.P.[C] no. 10/2025

5. By a Tender Notice dated 02.02.2024, the District Commissioner, Barpeta as the Tender Inviting Authority invited tenders from eligible bidders for settlement of Mandiakur Fishery for a period of seven years. In the Tender Notice, the annual yearly revenue of Mandiakur Fishery was mentioned as Rs. 30,000/- for the first year by the Tender Inviting Authority. As per the Tender Notice, the last date for submission of bids was 22.02.2024. In response to the Tender Notice, seven bidders including the petitioner society and the respondent no. 3 society, submitted their tenders. As per the proviso to Rule 12 of the Fishery Rules, a 60% category fishery can be settled with special category of co-operative societies, non-governmental organizations [NGOs] and self-help groups [SHGs] consisting of 100% fishermen in the neighbourhood of the fishery concerned. Therefore, the tender process for Mandiakur Fishery was limited to such category of bidders. On receipt of the tenders, the Evaluation Committee constituted by the District Commissioner, Barpeta opened the tenders on 05.03.2024 and after scrutiny of the tenders and the documents submitted in support of the tenders, the Evaluation Committee prepared a Comparative Statement indicating about receipt or non-receipt of the essential documents, as indicated in the Tender Notice, along with the tendered value offered by the seven participant tenderers. As for the purpose of the settlement process involved in the writ petition, the details recorded in respect of all the seven participant tenderer

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