STATE OF BIHAR Vs. HINDUSTAN AGENCIES
LAWS(SC)-1993-9-116
SUPREME COURT OF INDIA (FROM: PATNA)
Decided on September 15,1993

STATE OF BIHAR Appellant
VERSUS
Hindustan Agencies Respondents

JUDGEMENT

- (1.) The Superintending Engineer, Minor Irrigation, government of Bihar, patna placed an order for supply of 16,000. 00 HDPE pipes with the respondent- firm. Having found that the said order was placed in violation of the rules, the same was cancelled. The respondent challenged the cancellation order dated 13/7/1984 by way of a writ petition before the Patna High court. The writ petition was allowed and the High court by its judgment dated 31/7/1985 directed the State government to execute the contract and proceed to purchase the pipes from the respondent-firm. This appeal by way of special leave is against the judgment of the High court.
(2.) We have heard learned counsel for the State of Bihar. We are of the view that the High court fell into patent illegality in allowing the writ petition by the impugned judgment.
(3.) The High court by its order dated 19-3-1985 directed the State government to reconsider the question of cancelling the contract regarding the supply of pipes by the respondent to the government. secretary to the a government in the department concerned considered the matter afresh and came to the conclusion that the decision of the State government to cancel the supply order was justified. The representation of the respondent firm was thus rejected in the following terms: "It was found that the order for supply of HDPE pipes placed by the superintending Engineer, Minor Irrigation Circle, Patna vide his Supply order No. 2208 dated 30/12/1983 was totally irregular since the superintending Engineer was neither competent to place such an order nor was the order placed in conformity with the government instructions and rules and regulations. The Superintending Engineer, subsequently through his letter No. 1043 dated 13/7/1984 had cancelled the supply order. After careful examination of the matter and perusal of all the available papers, in obedience to the orders of the Hon'ble High court, the government has decided that the supply order placed by the Superintending Engineer, Minor irrigation Circle, Patna being totally irregular and in utter violation of the rules and regulations, there is no ground nor any justification for the government to take up on itself the responsibility for such an irregular and illegal supply order. The order has already been subsequently cancelled also by the Superintending Engineer concerned. Under these circumstances, after having examined the matter in depth, as directed by the Hon'ble High Court, it is found that there is no valid ground to accept your representation against the cancellation of the supply order by the Superintending Engineer, Minor Irrigation Circle, Patna communicated vide his letter No. 1043 dated 13/7/1984. "the contract for the supply of pipes was given to the respondent without inviting tenders. No advertisement in the newspaper was published to invite offers for the supply of pipes. The Vigilance Department also held an inquiry into the matter. The Technical Cell of the Vigilance Department by its report dated 26/6/1984 came to the conclusion that the Superintending Engineer had no authority to place the order, the rules and regulations were violated and even the price agreed to be paid was on the higher side.;


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