C K ACHUTAN Vs. STATE OF KERALA

JUDGEMENT

(1.) This is a petition under Art. 32 of the Constitution by one C.. K. Achuthan, who claims to have held a contract for the supply of milk and other articles of diet for the year 1958-1959 but whose contract for supply of milk is said to have been cancelled by the District Medical Officer (second respondent herein.) The contract for the supply of milk has now been given to the third respondent, the Cooperative Milk Supplies Society, Cannanore.

(2.) From the petition, it appears that the petitioner held contracts for the supply of milk to the Government Hospital at Cannanore (Kerala State) ever since 1946, and that previous to this, his brother in the same business held similar contracts from 1936.

(3.) In 1957, a "uniform procedure for fixing up contracts" was adopted, and by a notification, conditions for acceptance of tender were laid down. The petitioner as well as the third respondent submitted their respective tenders, which were to be opened by the Superintendent of the Hospital in the presence of interested parties. We need not refer to all the conditions under which tenders were to be accepted, except those which have a bearing upon this matter. It was stated in the conditions that no tender marked at "current market rates" would be accepted, and further that in the supply of milk, preference would be given to approved Co-operative Milk Supply Unions and Societies, if their tender was within a margin of 5 per cent over the market rate or the lowest tendered rate, whichever was less. All persons making tender for the contract had to produce a certificate of solvency and tax clearance certificates, and to make a deposit with the tender.