- (1.) THESE appeals by special leave filed by kisan Sahkari Chini Mills Limited, Sitarganj, gadarpur and Nadehi [civil Appeal No. 5543/ 2004], State of Uttaranchal [civil Appeal No. 5544/2004], and Doiwala Sugar Company limited and Kichha Sugar Company Limited [civil Appeal No. 5545/2004] are directed against the final judgment and order dated 28-7-2004 passed by the Division Bench of the high Court of Uttaranchal in Writ Petition No. 318/2004 filed by Vardan Linkers, a proprietary concern of B. B. Singh, first respondent in these appeals. By the impugned judgment, the High Court allowed the said writ petition and quashed the order dated 24. 4. 2004 of the secretary, Cane Development and Sugar industries, whereby the order dated 26. 03. 2004 of the Assistant Cane commissioner, Udham Singh Nagar, granting permission to the first respondent to lift 85,000 quintals of molasses from the five sugar mills at a price of Rs. 127/- per quintal was cancelled. Factual Background :
(2.) IT is stated that there are six State controlled sugar mills in the State of Uttaranchal, which produce molasses as a bye- product. Of them, two mills - Doiwala Sugar Company Limited and Kichha Sugar Mills Limited - are government Companies. The other four are in the co-operative sector, namely, Kisan sahkari Chini Mills Limited at Nadehi, gadarpur, Sitarganj and Bhajpur. Sale of molasses produced by these six sugar mills was controlled through the Molasses Sales committee constituted by the State government vide order dated 25. 3. 2003, with the following nine Members: (i) Commissioner, Kumaon Mandal, Nainital - Chairman (ii) District Magistrate, Udham Singh Nagar - Member (iii) Six General Managers of the four cooperative Sugar Mills and two Sugar Companies - Members (iv) Assistant Cane Commissioner, Udham singh Nagar - Secretary the said order made it clear that molasses of the six sugar mills shall be sold only through the said Committee. The State Government policy at the relevant time required molasses produced by these sugar factories to be disposed in the following manner: 70% to distilleries and chemical factories in the State; 10% to manufacturers of country liquor within the State; and 20% to bona fide consumers (distilleries and chemical industries ). No allottee who got allotment as a bona fide consumer could transfer the allotment to anyone else. The Kisan Sahkari Chini Mills Limited, gadarpur, issued a tender notice (published in Amar Ujala dated on 23. 2. 2004) inviting offers from bona fide consumers for purchase of 'b' grade molasses produced by five sugar mills at Gadarpur, Nadehi, Sitarganj, Doiwala and Kiccha. Tenderers were required to submit their tenders to the Assistant Cane commissioner, Udham Singh Nagar, specifying the name of the Sugar Mills from which he wanted to purchase molasses and the quantity. The tender had to be accompanied by an earnest money of rs. 1,00,000/- in respect of each sugar mill from which the tenderer wanted to buy molasses. In response to the tender notice, first respondent and others submitted their tenders, which were opened on 1. 3. 2004 at 3. 30 PM by the Assistant Cane commissioner, Udham Singh Nagar, in the presence of the General Manager, Gadarpur, the Purchase Clerk of Sitarganj Mills and molasses Clerk of Nadehi Mills. The first respondent's tender was for purchase of 15,000 quintals of molasses from Kisan sahakari Chini Mills Limited, Nadehi, at a price of Rs. 101/- per quintal. The said offer contained a note to the effect that "we will lift molasses in favour of distilleries of UP, Punjab and Haryana". The first respondent did not enclose any earnest money with the tender, but stated that a sum of Rs. 1,00,000/- was already deposited with the Nadehi Sugar Mill. The first respondent did not make any offer for purchasing molasses from the other four mills. As the prices offered by the tenderers were found to be very low, negotiations were held by the Assistant Cane Commissioner with the tenderers on the same day. This was followed by further negotiations on 3. 3. 2004. At the time of negotiations on 3. 3. 2004, only three members of the Molasses Sales committee were present - District Magistrate, udham Singh Nagar, General Manager, gadarpur Sugar Mills and the Assistant Cane commissioner, Udham Singh Nagar. The chairman of the Molasses Sales Committee and the General Managers of the five other sugar mills, were not present. The Chief accountant of Sitarganj Mills was present. During negotiations, the first respondent increased its offer to Rs. 119/- per quintal and again to Rs. 127/- per quintal.
(3.) THE three members of the Committee, who were present (along with the Chief Accountant of Sitarganj Mills), submitted a Note dated 03. 03. 2004 to the Chairman of the Molasses sales Committee, reporting that during negotiations, the first respondent had offered to purchase the entire stock of molasses of the five sugar mills at Gadarpur, Nadehi, sitarganj, Kichha and Doiwala at a price of rs. 127/- per quintal, though he had submitted the tender only for purchase of molasses of nadehi sugar mill. It was also reported that the first respondent had assured payment of earnest money in respect of each of the four other mills, within seven days if his offer was accepted. The report also stated that the price of Rs. 127/- per quintal offered by the first respondent was higher than the offer of the other tenderers - IGL (Rs. 117i-) and Rampur distillery (Rs. 126/- ). The Chairman was requested to make his recommendations for accepting the offer of first respondent. The chairman of Molasses Sales Committee made an endorsement 'seen' on the said note on 3. 3. 2004. The District Magistrate, Udham singh Nagar, made a note thereon to the effect, "necessary orders may be issued today itself. Firm may deposit earnest money". The first respondent deposited Rs. 4,00,000/- by bank drafts under cover of letter dated 10. 03. 2004, towards earnest money for purchase of molasses of the sugar mills at gadarpur, Sitarganj, Kichha and Doiwala. The Assistant Cane Commissioner, Udham singh Nagar, vide letter dated 15. 03. 2004 permitted the first respondent to lift 5,000 quintals of molasses from Kisan Sahkari sugar Mill Ltd. , Nadehi, at the rate of Rs. 127/-per quintal within one month.;