JUDGEMENT
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(1.) The second petitioner is the Secretary of the first petitioner, a company
incorporated under the provisions of the Companies Act, 1956. It has been
formed to represent the interest of several jute mills in the country.
(2.) In this writ petition, the petitioners seek the following relief:
"(a) Declaration that the amendment to clause 19 of the general conditions of
contract being DGS&D 68 (Revised) dated May 31, 2013 is not applicable to
the members of the petitioner No. 1 relating to supply of jute bags under the
Jute and Jute Textiles Control Order, 2000;
(b) A Writ of and/or in the nature of Mandamus do issue commanding the
respondent Nos. 1 to 4 and each of them to issue Supply Orders with payment
terms in accordance with the special conditions of contract dated November
29, 1985;
(c) A Writ of and/or in the nature of Certiorari do issue calling upon the
respondent nos. 1 to 4 and each of them to forthwith certify and transmit to
this Hon'ble Court the records of the case culminating in the impugned
decision to unilaterally change the payment terms in the Supply Orders on the
basis of amendment to clause 19 of general conditions of contract being
DGS&D-68(Revised), so that upon consideration thereof the same are quashed
and conscionable justice is rendered to the members of the petitioner No.1;
(d) A Writ of and/or in the nature of Prohibition do issue prohibiting the
respondent nos. 1 to 4 and each of them from changing the "payment terms"
in the Supply Orders on the basis of the amendment to clause 19 of general
conditions of contract being DGS&D-68(Revised) dated May 31, 2013 or from
withholding 10% or any amount from the pending bills of the members of the
petitioner No. 1 on the basis thereof, in any manner whatsoever;"
(3.) Shorn of unnecessary details, the jute mills represented by the first
petitioner are under an obligation to comply with orders passed by the Jute
Commissioner called "Production Control Orders" (hereafter the PCOs) in
exercise of power conferred by paragraph 4 of the Jute Textiles Control
Order, 2000 (hereafter the Control Order). The procedure that is followed for
production, requisition and supply of jute bags by a jute mill/manufacturer
under the Jute Packaging Materials (Compulsory Use in Packaging
Commodities) Act, 1987 read with the Control Order is pleaded in paragraph
15 of the writ petition, which reads as under:
"15. The procedure followed for production, requisition and supply of jute
bags by a jute mill/manufacturer under the said Packaging Act read with
the said Control Order, is as under:-
a) The Jute Commissioner in exercise of powers conferred under clause 4 of the
said Control Order issues PCOs directing any jute mill/manufacturer to
produce such quantities of and classes of jute textiles, as he may specify in
his order for the implementation of the Packaging Act and any directive of the
Central Government. In the PCOs, the Jute Commissioner also directs the
manufacturer to sell the bags to the persons nominated by Director of Supplies
and Disposals (hereafter referred to as "DS&D").
b) The said production of jute bags are requisitioned by the DS&D by an order
under para 10 of the said Control Order read with notification dated August
31, 2000, called "Requisition Order".
c) Thereafter, a "Supply Order" is issued by the DS&D on the basis of PCO and
the Requisition Order, providing the terms and conditions of supply.
d) The Director, Quality Assurance, the Inspection Wing of DS&D, is the
statutory authority empowered under para 10 of the said Control Order read
with the said notification dated August 31, 2000 to inspect the quality of jute
bags, prior to dispatch to the consignee, nominated by DS&D. After
inspection, the jute bags are dispatched to the consignee.
e) If on receipt of the jute bags, the consignee complains about quality of the
same, a joint inspection is held in presence of representatives of the concerned
jute mill, consignee, DS&D, Bureau of Indian Standards. If on joint inspection
the jute bags are found to be defective, the jute mill replaces the same.
f) DS&D deducts amounts from the pending bills of the jute mills in case of
complaint about quality of the jute bags.";
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