SHRI JAGANNATH SUPPLY COMPANY Vs. STATE OF CHHATTISGARH

JUDGEMENT

(1.) In this petition, the petitioner has initially challenged issuance of tender notification dated 16-01-2020 (Annexure P-1) by the Respondent No. 3. During the pendency of the writ petition, the petitioner amended the writ petition and also challenged the order dated 12-02-2020 (Annexure P-10) which is an order of cancellation of sale order/ letter issued in favour of the petitioner.

(2.) Facts of the case in nutshell are that the Respondent No. 3 issued a Notice Inviting Tender notification for sale of 6000 Metric Ton (M.T.) of molasses, last date for submission of bid by the interested tenderers was 15-10-2019 till 01:00 P.M. The petitioner is a proprietorship firm having its principle place of business at Talkhed Chhak, Ogalpada, Janla, Khurda (Orissa) deals with sale and purchase of molasses. Petitioner participated in tender proceedings initiated by Respondent No. 2 and 3 for sale of molasses along with others. The tender form submitted by the tenderers was opened on 15-10-2019 in which the highest rate quoted was of Rs. 4045 per M.T. Respondent No. 3 issued sale order/ letter in favour of the petitioner along with other selected tenderers. Sale order/ letter was issued on 01-11-2019 (Annexure P-5) allotting total 5000 M.T. of molasses for sale in favour of the petitioner. The sale order/ letter bears conditions from clauses 1 to 16 for sale of molasses. One of the clauses mentioned in the sale letter is that the total quantity of molasses is to be lifted by the petitioner on or before 31-03-2020. During the currency period of the sale order/ letter issued in favour of the petitioner, Respondent No. 3 has floated another tender notification on 16-01-2020 for Sugar S-30 and molasses. This tender notification was challenged by the petitioner by way of filing the writ petition on the grounds that the period mentioned in the sale order/ letter for uplifting the allotted quantity of 5000 M.T. of molasses is not yet completed, there is no violation of terms of purchase or sale of molasses as mentioned in the sale order/ letter dated 01-11-2019, the entire sale amount for total quantity of 5000 M.T. is deposited and the petitioner is having balance quantity of 3390.19 M.T. of molasses with Respondent No. 2 and 3 for lifting. The currency period of sale order/ letter issued in favour of the petitioner was up to 31-01-2019 but Respondent No. 3 again issued another short tender notification.

(3.) Respondent No. 2 and 3 submitted reply to the writ petition mentioning that the Respondent is a Co-operative Society engaged in manufacturing and sale of sugar and its by-products. Manufacturing of sugar is a seasonal work which starts from the month of November and concludes in the month of May, cane crushing capacity of sugar factory is about 25000 M.T. per day which generates approximately 5% to 6% of molasses of the total quantity of cane crushed. The tender notification upon which the sale order/ letter dated 01-11-2019 has been issued in favour of the petitioner was processed in the month of September 2019 and from that proceedings the bid submitted by the interested tenderers was opened on 15-10-2019. The production of molasses continues till the month of May and therefore another tender notification was issued well in advance on 16-01-2020 for further sale of molasses for the month of April and May. Apprehension of the petitioner that due to issuance of another tender notification, the rights of the petitioner under the sale order/ letter dated 01-11-2019 will be curtailed is not correct. The storage capacity of molasses is much less i.e. 5000 M.T. only and if the molasses is not lifted within the prescribed time then it will cause great hardship for Respondent No. 2 and 3 to continue the manufacturing process. In pursuance to the tender notification Annexure P-1, the tenderers have submitted their bids and the H-1 price quoted and finalized was Rs. 10,200/- per M.T. and the sale orders (Annexure R-2/1) were also issued in favour of the selected candidates. The petitioner has not complied with the conditions mentioned in the sale order/ letter of depositing the entire sale amount for 5000 M.T. of molasses within the period of 30 days as stipulated in condition No. 2 of the sale order/ letter. The minimum fix quantity to be lifted per month i.e. 25% of the total quantity allotted was also not complied with and the petitioner has lifted only 891.68 M.T. of molasses in the month of December 2019 and 887.22 M.T. in the month of January 2020 out of 1250 M.T. per month (i.e. 25% of total quantity). In reply submitted by Respondent No. 2 and 3, it is also mentioned that the sale order/ letter issued in favour of the petitioner was cancelled vide order dated 12-02-2020 (Annexure P-10).