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2006(3) JLJ 203
Shantanu Kemkar, J.
Welcome Distillery (Pvt.) Ltd., Bilaspur v. State of M.P. and
another
Writ Petitions No. 258, 91, 186, 1369 and 995 of 2006;
Decided on 13.2.2006
The Excise Commissioner of M.P. invited tenders from the distillers for supply of country spirit through bonded warehouses to the retail sale contractors in sealed bottles, in various districts mentioned therein for the period 1.4.2006 to 31.3.2007. [Para 3
Accordingly to the petitioners, the conditions No.2, 3(ii) and (iii) are arbitrary, unreasonable and irrational. [Para 4
Held : On a closer scrutiny of the aforesaid conditions and the object sought to be achieved by putting these conditions, in my considered view, the said conditions are not unreasonable, unfair or arbitrary. The conditions no way create any monopoly in the hands of existing contractor. In the past there was irregular supply of liquor by the distillers, as per the experience of the respondents the earlier contractors were either not the producer themselves or their distilleries were not functional during the entire year causing substantial financial loss and irregular supply. To overcome this situation of irregular supply and financial loss, the respondents have put the conditions that the distiller should have been in production for at least 180 days in the calendar year 2005 and also put condition in respect of production capacity. The contention of the petitioners that these conditions have been laid down to exclude distillers other than who have been granted licence by the respondents for the year 2005-06 cannot be accepted in view of the provisions of the M.P. Country Spirit Rules, 1995 which provide that the distiller can manufacture and export country spirit obtaining a licence in form CS 1-A. Thus, even if the petitioners could not secure contract for the year 2005-06 or in the preceding years, there was no impediment in manufacturing and supplying the country spirit outside the State of M.P. Thus, for having been in production for at least 180 days during the calendar year 2005 or in the past it was not necessary that they should have been granted contract by the respondents in the year 2005 or in the past. In the circumstances, it cannot be said that the .condition is to create monopoly in favour of the existing contractors. The condition of assessing the past performance or conduct of the tenderer also cannot be said to be arbitrary or irrational as to ensure uninterrupted supply and to avoid financial loss laying down such condition is quite relevant. The condition of production capacity, of supplying the required quantity of country spirit taking into account the production capacity and the production in the last 4 years has also nexus with the object sought to be achieved. In order to assess that a tenderer would be able to meet out the demand and maintain regular supplies during the period of contract, putting of such condition cannot be said to be arbitrary or unreasonable. Insistence for producing of no dues and creditability certificate regarding past performance with respect to production and supply of alcohol in case of distillery located outside M.P. by the Excise Commissioner of that State and no one else has been put to avoid producing such certificate obtained from incompetent person. In this view of the matter, this condition is also not arbitrary or irrational warranting any interference. (1969) 1 SCC 414, AIR 1979 SC 1628, (2004)11 SCC 485, (2000)2 SCC 617 and (2004)4 SCC 19 distinguished. (2005) 1 SCC 679, AIR 1996 SC 11 and 1987 JLJ 53 (SC) followed. [Paras 10, 7 & 8
(2) Tender -- M.P. Country Spirit Rules, 1995 -- M.P. Distillery Rules, 1995 - condition 5(ii) -- contract for supply of spirit in M.P. -- production of no dues and credibility certificate of Excise Commissioner of M.P. -- Commissioner out of State -- Deputy Commissioner‘s certificate who is performing function of Commissioner, is valid. [Para 11
(3) Constitution of India -- Arts. 14 and 19 -- contract for public work or supply of material -- Government cannot choose contractor at its Will and pleasure -- it has to act fairly -- no person can claim fundamental right of business. (2004)11 SCC 485 and (2005) 1 SCC 679 followed. [Para 9
(4) Constitution of India -- Art. 226 -- award of contract by Government -- is essentially a commercial transaction n State can fix its own terms of invitation -- it is not open to judicial scrutiny. (2000)2 SCC 617 and (2004)4 SCC 19 followed. [Para 9
¼1½ fufonk && e-iz- ns‘kh fLifjV fu;e] 1995 && e-iz- vklouh fu;e] 1995 && ‘krZ 2] 3¼nks½] 3¼rhu½ rFkk 5¼nks½ && e/; izns‘k esa ns‘kh fLifjV ds iznk; ds fy, fufonk && mi;qZDr ‘krsZa u v;qfDr;qDr Fkha] u v_tq ;k euekuh gh && og mn~ns‘; dh izkfIr ds fy, vkSj fu;fer iznk; lqfuf‘pr djus ds fy, vf/kjksfir dh xbZ gSa && muls orZeku Bsdsnkjksa ds i{k esa ,dkf/kdkj l`ftr ugha gksrkA e/; izns‘k ds vkcdkjh vk;qDr us 1-4-2006 ls 31-3-2007 dh vof/k ds fy, fufonk esa mfYyf[kr fofHkUu ftyksa esa caf/kr HkkaMkxkjksa ds ek/;e ls eqgjcan cksryksa esa [kqnjk foØ; Bsdsnkjksa dks ns‘kh fLifjV ds iznk; ds fy, vklodksa ls fufonk,¡ vkeaf=r dhaA ¼iSjk 3 ;kphx.k ds vuqlkj] ‘krZ Ø- 2] 3¼nks½ vkSj ¼rhu½ euekuh] v;qfDr;qDr vkSj v;qfDrlaxr gSaA ¼iSjk 4 vfHkfu/kkZfjr % iwoksZDr ‘krksZa dh vkSj ;g ‘krsZa vf/kjksfir dj izkIr fd, tkus okys vHkh"V mn~ns‘; dh lw{e laoh{kk djus ij] esjh lqfopkfjr jk; esa mDr ‘krsZa v;qfDr;qDr] v_tq ;k euekuh ugha gSaA bu ‘krksZa ls orZeku Bsdsnkjksa ds i{k esa ,dkf/kdkj fdlh Hkh izdkj l`ftr ugha gksrkA foxr le; esa vklodksa }kjk e| ds iznk; esa vfu;ferrk Fkh] izR;FkhZx.k ds vuqHko ds vuqlkj iwoZorhZ Bsdsnkj ;k rks Lo;a mRiknd ugha Fks ;k fQj mudh vklofu;k¡ laiw.kZ o"kZ ds nkSjku fØ;k‘khy ugha Fkha ftlls lkjoku~ foÙkh; gkfu vkSj vfu;fer iznk; dkfjr gq,A vfu;fer iznk; vkSj foÙkh; gkfu dh bl fLFkfr ls ikj gksus ds fy, izR;FkhZx.k us ‘krsZa j[kha fd dSysaMj o"kZ 2005 esa de&ls&de 180 fnu mRiknu fd;k gks rFkk mRiknu {kerk ds ckjs esa Hkh ‘krZ j[khA ;kphx.k dk ;g ladFku fd ;g ‘krsZa muds vfrfjDr ftUgsa izR;FkhZx.k }kjk o"kZ 2005&06 ds fy, vuqKfIr iznku dh xbZ gS] vU; vklodksa dks vioftZr djus ds fy, vf/kdfFkr dh xbZ gSa] e-iz- ns‘kh fLifjV fu;e] 1995 ds mica/kksa dh n`f"V ls Lohdkj ugha fd;k tk ldrk ftuesa micaf/kr gS fd vklod iz:i lh,l 1&, esa vuqKfIr vfHkizkIr dj ns‘kh fLifjV dk fuekZ.k vkSj fu;kZr dj ldrk gSA vr% ;kphx.k o"kZ 2005&06 ds fy, ;k iwoZorhZ o‘kksZa esa Bsdk izkIr ugha dj lds gksa rc Hkh ns‘kh fLifjV fufeZr djus vkSj e-iz- jkT; ls ckgj fu;kZr djus esa dksbZ Hkh O;o/kku ugha FkkA vr% dSysaMj o"kZ 2005&06 ds nkSjku ;k foxr le; esa de&ls&de 180 fnu mRiknu djus ds fy, vko‘;d ugha fd izR;FkhZx.k }kjk o‘kz 2005 esa ;k foxe le; esa mUgsa Bsdk iznku fd;k x;k gksA bu ifjfLFkfr;ksa esa ;g ugha dgk tk ldrk fd ‘krZ orZeku Bsdsnkjksa ds i{k esa ,dkf/kdkj l`ftr djus ds fy, gSA fufonkdrkZ dk xr fu"iknu ;k vkpj.k fu/kkZfjr djus dh ‘krZ Hkh euekuh ;k v;qfDrlaxr ugha dgh tk ldrh D;ksafd fujarj iznk; lqfuf‘pr djus vkSj foÙkh; gkfu ls cpus ds fy, ,slh ‘krZ vf/kdfFkr djuk furkar lqlaxr gSA mRiknu {kerk vkSj fiNys 4 o‘kksZa esa fd;k x;k mRiknu fglkc esa ysrs gq, ns‘kh fLifjV dh visf{kr ek=k iznk; djus dh mRiknu {kerk dh ‘krZ Hkh vHkh"V mn~ns‘; ls lacaf/kr gSA ;g fu/kkZfjr djus ds fy, fd fufonkdrkZ Bsds dh vof/k ds nkSjku ek¡x dh iwfrZ dj ldsxk vkSj fu;fer iznk; pkyw j[k ldsxk] ,slh ‘krZ dk j[kk tkuk euekuk ;k v;qfDr;qDr ugha dgk tk ldrkA e/; izns‘k ds ckgj fLFkr vklouh ds ekeys esa e|lkj ds mRiknu vkSj iznk; ds laca/k esa dsoy ml jkT; ds vkcdkjh vk;qDr }kjk] fdlh vU; O;fDr }kjk ugha] ‘kks/; ckdh ugha gksus vkSj fo‘oluh;rk dk izek.ki= is‘k fd, tkus dk vkxzg v{ke O;fDr ls vfHkizkIr izek.ki= is‘k fd, tkus ls cpus ds fy, fd;k x;k gSA bl n`f"V ls ;g ‘krZ Hkh euekuh ;k v;qfDrlaxr ugha gS ftlls gLr{ksi okaNuh; gksA ¼1969½1 ,l lh lh 414] , vkb vkj 1979 ,l lh 1628] ¼2004½11 ,l lh lh 485] ¼2002½2 ,l lh lh 617 rFkk ¼2004½4 ,l lh lh 19 izHksfnrA ¼2005½1 ,l lh lh 679] , vkb vkj 1996 ,l lh 11 rFkk 1987 ts ,y ts 53 ¼mPpre U;k-½ vuqlfjrA ¼iSjk 10] 7 ,oa 8 ¼2½ fufonk && e-iz- ns‘kh fLifjV fu;e] 1995 && e-iz- vklouh fu;e] 1995 && ‘krZ 5¼nks½ && e/; izns‘k esa fLifjV ds iznk; ds fy, lafonk@Bsdk && e/; izns‘k ds vkcdkjh vk;qDr ds ‘kks/; ckdh ugha gksus vkSj fo‘oluh;rk dk izek.ki= dk is‘k fd;k tkuk && vk;qDr jkT; ds ckgj && mik;qDr dk] tks vk;qDr ds d`R; dj jgk gS] izek.ki= fof/kekU; gSA ¼iSjk 11 ¼3½ Hkkjr dk lafo/kku && vuq- 14 rFkk 19 && lkoZtfud dk;Z ;k lkexzh ds iznk; ds fy, lafonk@Bsdk && ljdkj viuh bPNk vkSj izlknkuqlkj Bsdsnkj ugha pqu ldrh && mls _tqrk ls dk;Z djuk gksrk gS && dksbZ Hkh O;fDr dkjckj ds ewykf/kdkj dk nkok ugha dj ldrkA 2004¼11½ ,l lh lh 485 rFkk ¼2005½1 ,l lh lh 679 vuqlfjrA ¼iSjk 9 ¼4½ Hkkjr dk lafo/kku && vuq- 226 && ljdkj }kjk Bsdk fn;k tkuk && lkjr% okf.kfT;d laO;ogkj gS && jkT; vkea=.k ds vius fuca/ku fu;r dj ldrk gS && U;kf;d laoh{kk ugha dh tk ldrhA ¼2000½2 ,l lh lh 617 rFkk ¼2004½4 ,l lh lh 19 vuqlfjrA ¼iSjk 9
1. Petitioners are distillers engaged in the business of manufacturing and supply of country spirit in the sealed bottles. They have challenged the conditions of tender notice dated 21.12.2005 issued by the second respondent Excise Commissioner of Madhya Pradesh by which tenders were invited from the distillers for grant of licence(s) under provisions of the M.P. Country Spirit Rules, 1995 to supply country spirit through bonded warehouses to the retail sale contractors in the sealed bottles in the area of 24 districts of the State of Madhya Pradesh for the period commencing 1st April 2006 and ending with 31st March 2007.
2. In Writ Petition No. 258/2006 Welcome Distillery Pvt. Ltd. v. State of M.P. the challenge is to clauses 2 and 3(ii) of the tender notice. In Writ Petition No. 91/2006 M/s. S.C. Distilleries v. State of M.P. and Writ Petition No. 186/2006 Cox India Ltd. v. State of M.P. the challenge is to clause 2 of the tender notice. In Writ Petition No. 1369/2006 Cox India Ltd. v. State of M.P. the challenge is to clause 3(iii) and also to the order dated 9.1.2006 passed by the respondents rejecting the petitioner's technical bid for non-fulfilment of requirement of condition enumerated in clause 3(iii) of the tender notice. In Writ Petition No. 995/2006 Narang Distilleries Ltd. v. State of M.P., the challenge is to clause 5(ii) of the tender notice and also to the order dated 9.1.2006 passed by the respondents by which the petitioner's tender document has been rejected for non-furnishing no dues and credibility certificate of Excise Commissioner of U.P.
3. Briefly stated, on 21.12.2005 the Excise Commissioner of M.P. invited tenders from the distillers for supply of country spirit through bonded warehouses to the retail sale contractors in sealed bottles, in various districts mentioned therein for the period 1.4.2006 to 31.3.2007. The conditions of the tender notice which are under challenge through these petitioners are extracted below for ready reference:
Clause 2 of the tender notice reads thus:
"2. The tenderer should be a distiller holding appropriate licence for distillery from the competent authority and distillery should be in production currently and should have been in production for at least 180 days during the Calendar Year 2005. Every intending distiller is free to tender for anyone or more supply areas indicated above.
Clause 3(ii) and (iii) read thus:
3. Tender(s) for supply area(s) will be considered on the basis of the following factors:
(i) .... .... ....
(ii) Performance or conduct if the tenderers held a similar licence in the past -- While assessing past performance and conduct, regularity of liquor supplies to the area/areas earlier allocated would be taken into consideration.
(iii) Production Capacity -- Whether the tenderer is capable of supplying the required quantity of country spirit in the area/areas (for which tender(s) have been submitted) taking into account the production capacity and the production in the past 4 years.
The decision to accept or reject a tender shall be taken on the basis of tender/tenders received in the light of the above and any other relevant factors. No negotiations will be held. It is also notified for the information of intending tenderers that tenders of a distiller in respect of only such number of supply area may be considered of which the total estimated quantity of issues of country spirit for the year 2006-07 [arrived at by increasing the estimated issues during 2005-06 (estimated issues will be based upon actual updated average issues) by 5%] does not exceed 80% of the average annual production in his distillery during the last 4 years, i.e., 2002-03, 2003-04, 2004-05 and projected 2005-06 (the projected production of 2005-06 will be based upon actual up-dated average production). The successful tenderers shall be allowed to export outside the State only after getting permission in this regard from the Excise Commissioner. The said permission shall be given only
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