SHYAM BIRI WORKS PVT LTD Vs. U P FOREST CORPORATION
LAWS(ALL)-1990-3-21
HIGH COURT OF ALLAHABAD
Decided on March 20,1990

SHYAM BIRI WORKS PVT. LTD. Appellant
VERSUS
U.P.FOREST CORPORATION Respondents

JUDGEMENT

RAVI S.DHAVAN, J. - (1.) This writ petition, amongst many others, before the Court, raises a question whether the Court may have the power of absolution in making a new contract or in the alternative whether it could spell out new conditions of a contract. The facts which raise these questions arise out of a situation when a State agency invited tenders for the purchase of tendu leaves.
(2.) Trading in tendu leaves was curtailed and settled on a state corporation, in effect, to create a State monopoly in the purchase and distribution of tendu leaves. This was done when the State of Uttar Pradesh enacted a legislation known as Uttar Pradesh Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1972, hence forth referred to as the Act. In pursuance of the Act were framed the Uttar Pradesh Tendu Patta (Vyapar Viniyaman) Niyamawali, 1972, henceforth referred to as the Rules.
(3.) Tendu leaves are used in the manufacture of Bidis, in Uttar Pradesh amongst many other states. Bidi manufacturing, right from the stage of growing leaves, its sale and its consumption into a finished produce is a multi million rupees business in the country. The right to trade in tendu leaves has been intentionally created into a State monopoly. This is clear from the object of the Act, aforesaid. The objects recite: "An Act to provide in the public interest for the creation of State monopoly in the purchase and distribution of Tendu leaves and for the matters connected there with." The monopoly is handled in the State through an agency. In reference to the context it is the Uttar Pradesh Forest Corporation.;


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