KUSHAGRI TRADERS Vs. STATE OF U.P.
LAWS(ALL)-2020-6-100
HIGH COURT OF ALLAHABAD
Decided on June 09,2020

Kushagri Traders Appellant
VERSUS
STATE OF U.P. Respondents

JUDGEMENT

DINESH KUMAR SINGH,PANKAJ KUMAR JAISWAL, - (1.) Heard Sri Vijay Pratap Singh, learned Counsel for the petitioners and Sri Amitabh Rai, learned Additional Chief Standing Counsel for respondents-State.
(2.) With the consent of learned Counsel for the parties, the writ petition has been taken up today for disposal.
(3.) In the matter of Narayan Verma and another v. State of U.P . and 3 others, Writ-C No.8874 of 2020, a Co-ordinate Bench of this Court has held that Uttar Pradesh Kshettra Samitis and zila Parishads Works Rules, 1984 nowhere restricts the contractors registered with other government department from participating in tender process initiated for the works relating to district panchayats, and also not makes it necessary for the district panchayats to avail services of the contractors registered as per Rule 18 of 1984 Rules only. Relevant portion of the order dated 17.3.2020 passed in the aforesaid judgment reads as under:- "Heard learned counsels and examined the entire scheme of the Rules of 1984. Exercising powers under sub-section (I) of Section 237 of the Uttar Pradesh Kshettra Samitis and Zila Parishad's Act, 1961, the Governor of Uttar Pradesh enacted the Rules to prescribe a complete process to initiate, allocate and accomplish the works related to district panchayats. The Rule 2 of the Rules prescribes the definition of "Abhiyanta" and "Mukhya Adhikari". As per clause (iii) of Rule 2 other terms used but not defined in the Rules shall have the meaning assigned to them in Rule 2 of the Uttar Pradesh Zila Parishad's and Kshettra Samitis (Budget and General Accounts) Rules, 1965. Rule 18 of the Rules pertains to registration of approved contractors. For ready reference, Rule 18 is quoted below:- "18. Register of approved contractors. - A register of approved contractors shall be maintained in Form No.W-1 in the office of the Parishad or Kshettra Samiti. Contractors shall be approved by inviting applications through advertisement in the local newspapers and after verifying the anticidents of the applicants and obtaining the approval of the Sarvajanik Nirman Samiti or Karya Karini, as the case may be. Every contractor approved for execution of the works of a Parishad or a Kshettra Samiti shall be required to deposit a sum of Rs.100 as Registration fee before his name is brought on the register of approved contractors. Rule 19 of the Rules of 1984 provides a procedure for inviting tenders relating to execution of a work of district panchayat. The Rule 19 aforesaid reads as follows:- "19. Inviting of tenders. - No contract for the execution of a work estimated to cost more than Rs.5,000/- shall be given until sealed tenders for the tract, accompanied by earnest money to the amount fixed by proper authority, have been invited by public notice, which should be published by insertion in one or more local newspapers as the Mukhya Adhikari or Khand Vikas Adhikari, as the case may be, thinks fit and by pasting copies thereof at conspicuous places at the office of the Parishad or Kshettra Samiti, the Collector's Office, the court of the District Judge, or the court of every Additional District Judge, and Munsif whether the court of district is not situate, the headquarter of every tehsil, local offices of the Public Works Department (B and R), Irrigation Department and Local Self-Government Engineering Department. (Emphasis is given by us) Rule 21 of the Rules of 1984 pertains to public notice and procedure relating to tenders. For executing Rule 21, Form W-2 is provided in the Rules and recitals of that pertains to "contractors" and not to the "approved contractors". It would also be appropriate to state that in entire Rules no provision is made to disclose eligibilities or ineligibilities for contractors. In Ashok Kumar Singh and others (supra) a Division Bench of this Court by relying upon the language of Rule 18 arrived at the conclusion that the work pertaining to district panchayats is available only to the approved contractors and not to the contractors of other departments. On going through Rule 18 of the Rules of 1984, it is apparent that the same prescribes a procedure for registration of contractors. It no where mentions that only the contractors registered or are termed as approved contractors shall be entitled to have work contracts for district panchayats. True it is, as per Rule 18 approved contractor is require to deposit a definite sum for executing the work of district panchayat but that does not mean that the other contractors registered or approved by other departments shall not be eligible to participate in the process of tender. At the same time, Rule 19 of the Rules of 1984 while providing procedure for inviting tenders puts an embargo upon the authority inviting tenders to affix notice inviting tenders at several places including the local office of the Public Works Department (B and R), Irrigation Department, and Local Self-Government Engineering Department. The purpose of affixing notice inviting tenders at these places indicates that the contractors registered with the departments aforesaid may also be aware of the works available on contract and may participate therein. Otherwise there would have been no need to affix the notice at the local offices of other technical and Engineering departments. Rule 21 pertains to public notice and procedure relating to tenders and that no where restricts the grant of work contracts of panchayat department only to the approved contractors referred in Rule 18. At this stage, it would also be relevant to state that Rule 2 of the Rules no where defines the term "approved contractors" as referred in Rule 18 of the Rules of 1984. By force of clause (iii), the terms used but not defined in the Rules shall have the meaning assigned to them in Rule 2 of the Rules of 1965. On going through the Rules aforesaid we noticed that the term approved contractor is not defined therein too. In absence of the definition of the term aforesaid, the amplitude of it cannot be extended to cause discrimination among the contractors placed on registered roll of government departments and further to restrict the choice of Panchayat Raj institutions to limited sphere. It is always desirable to have a broad and better choice with a view to achieve and attain better quality of work. A statute is required to be interpreted in the fashion that allows it to be workable at its optimum and also in consonance to the thrust of the complete enactment. The position would have been different, if any restriction would have been given in the Rules of 1984 or by specific assertion the "approved contractor" would have been defined in such a manner to create monopoly in grant of work on contract. In entirety, we have to interpret Rule 18 and the term "Approved Contractor" to satisfy thrust of the Rules. As such, a conjoint reading of Rules 18 and 19 of the Rules of 1984 and by taking care of other provisions we have to see the intention of the Rule framing authority. For the reasons already given, we are having no doubt that the Rule framing authority was not intending to confine the work contracts of the district panchayats only to the approved contractors or registered contractors under Rule 18. ;


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