RAMZAN ALI Vs. STATE OF ASSAM

JUDGEMENT

(1.) In this application under Article 226 of the Constitution, the petitioner has prayed for quashing the order dated 7.11.97 of the Secretary to the Govt. of Assam, Panchayat & Rural Development Department setting aside the order of the SDO (S), Morigaon and President of the Kapili Anchalik Panchayat settling the Jaluguti weekly market in favour of Shri Kushal Chandra Nath and settling the said market in favour of Shri suren Dueri, Respondent No. 4.

(2.) The facts briefly are that by a tender notice dated 15.5.96, the Additional Deputy Commissioner, Morigaon, who was the incharge President of the Kapili Anchalik Panchayat invited tenders for settling of Jaluguti weekly Bazar for the 1997-98 fixing minimum of bazar at Rs. 35,000/- in the tender notice. Pursuant to said tender notice, eighteen (18) tenders including the petitioner and the respondent No.4 submitted tenders. The bid of the petitioner was at Rs. 92,209/- while the bid of the respondent No. 4 was at Rs. 65,039/-. The settlement, however, was made in favour of Shri Kushal Chandra Nath at Rs. 50,551/-. Aggrieved by the said order of settlement, the petitioner, respondent No. 4 as well as others filed appeals before the State Government of Assam in the Panchayat & Rural Development (A) Department. The Secretary of the said department in his appellate order dated 7.11.97 after hearing the parties set aside the order of settlement in favour of Shri Kushal Chandra Nath on the ground that under the provisions of Second proviso to sub-rule 7 of Rule -58 of the Assam Panchayati Raj (Financial) Rules, 1990, the tender of the highest bidder was to be accepted and the acceptance of tender other than the highest bid required the State Government's. previous and formal approval, but in the instant case, the tender of Shri Kushal Chandra Nath was at the amount of Rs. 50,551.00 which was not the highest bid but the settling authority accepted the same with our previous and formal approval of the State Government. By the said appellate order dated 7.11.97, the Secretary to the Govt. of Assam, Panchayat & Rural Development Department further held that of the bids quoted by different bidders, the bid amount of Rs. 65,039/- per month of Shri Suren Dueri, respondent No. 4- was the most reasonable bid and that in the public interest as well as in the interest of Anchalik Panchayat, the market should be settled in favour of the respondent No. 4.

(3.) At the hearing, Mr. H.R.A. Choudhury, learned counsel for the petitioner, vehemently contended that there were eighteen (18) bidders for the bazar and the highest bidder was Noor Mahammad Sheikh at the rate of Rs. 1,17,000/- and the second highest bider was the petitioner at Rs. 90, 209/- The bid of the respondent No. 4 as low as at Rs. 65,039/-. Thus the appellate authority acted contrary to the public interest in settling the bazar in favour of the respondent No. 4 at a bid of Rs 65,039/- Mr. Choudhury further submitted relying on the decision of the Apex Court in the case of Dutta Associates Pvt. Ltd. Vs Indo Merchantiles Pvt. Ltd. and others, 1997 (II) GLT (SC) 1, that whatever procedure the Government proposes to follow in accepting the tender must be clearly stated in the tender notice and in case the Government or the settling authority intends to settle the bazar not at the highest rate, tendered by the Parties, but at a reasonable rate, in the tender notice itself a stipulation should be made that the bazar would be settled at a reasonable rate on the basis of the rates quoted by the parties. Mr. Choudhury further submitted relying on the second provision to sub-rule 7 of Rule 58 of the Assam Panchayati Raj (Financial) Rules, 1990, that the tender of highest bidder is to be accepted.