STATE OF BIHAR Vs. P P SHARMA IAS

JUDGEMENT

(1.) The Bihar State Co-operative Marketing Union Limited (BISCOMAUN) (hereinafter called'BISCO) is an apex body operating in the State of Bihar. It is a federation of Co-operative Societies and its primary-function is to supply fertiliser to farmers through its depots and godowns numbering about 550, spread-over the State of Bihar.

(2.) Shri P. P. Sharma, IAS took over as Managing Director of BISCO on May 26, 1986 and continued to hold the said office till June 14, 1987. From December, 31, 1986 to June 14, 1987 he was also Secretary, Department of Co-operative, Government of Bihar and Registrar, Co-operative Societies, State of Bihar. G. D. Mishra was working as Advisor to BIS.CO during 1986-88. He resigned from the said post on August, 1988. It may be mentioned that one Tapeshwar Singh was the Chairman of BISCO during the above said period.

(3.) M/s. Rajasthan Multi Fertiliser Pvt. Ltd., Udaipur, Rajasthan (hereinafter called the 'firm') was holding a Certificate of Registration issued on August 8, 1985 by the Director of Agriculture, Bihar. It is alleged that a letter dated August 19, 1986 was addressed by the firm to the Managing Director of BISCO offering to supply fertiliser of specified grade and quality at Rs. 2,550/- per MT plus local taxes. It may be mentioned that the State of Bihar had issued a notification dated July 14, 1984 fixing the prices for different grades of fertilisers. The price of thd grade offered by the firm was fixed at Rs. 2,559/- per MT under the said notification. The firm sent another letter on October 5, 1986 repeating its offer contained in its. earlier letter. The offer of the firm was accepted and G. D. Mishra, on November 22, 1986, placed an order with the firm for the supply of 2,500 MT of fertiliser (NPK 15 : 15 : 71/2) at Rs. 2509.50 per MT. Thereafter G. D.Mishra placed further order with the firm on December, 19, 1986 for additional supply of 408 MT of fertiliser on the same terms. The firm supplied 2916 MT of fertiliser to BISCO. The total price to be paid to the firm was Rs.73,16,244/-. Rs.23.02 lac was paid on December 18, 1986. Thereafter Rs. 30.96 lac was paid on January 22, 1987. Thus a total sum of about Rs. 54/ - lac was paid to the firm.