SOM DISTILLERY PRIVATE LIMITED Vs. LT GOVERNOR DELHI

JUDGEMENT

(1.) On 18th April 1992 Commissioner of Excise, Delhi, invited tenders for grant of two or more licences in Form L-9 from the licensed manufacturing units (Distilleries including their bottling plants) for supply of country liquor in Union Territory of Delhi during the year 1992-93 (1st May 1992 to 31st March 1993). The Petitioner and Respondent No.5 were amongst the tenderers. Some of the other tenderers were Central Distillery and Breweries Ltd, Bazpur Distillery, Sir Shadilal Distillery, Modi Distillery, <PG>504</PG> Rampur Distillery and Pilkhani Distillery. These tenderers, petitioner and respondent No.5 were called for negotiation of rates by a Committee appointed by the Lt.Governor to obtain country liquor at the lowest possible price. Out of the tenderers invited for negotiation the lowest rates were tendered by Central Distillery; Second lowest rates were of Bazpur Distillery; Respondent No.5- M/s.Cooperative Company Ltd was third lowest; the rates quoted by Sir Shadilal Distillery were fourth lowest. The petitioner was 7th in the ascending order. As required by the terms and conditions for the grant of the licence the petitioners deposited an amount of Rs.5 lakhs by way of earnest money with Commissioner of Excise. During negotiations with the Negotiating Committee, the tenderers including the petitioner agreed to reduce the rates. By letter dated 13th May 1992 the Collector of Excise informed the petitioner that Lt. Governor of Delhi had accepted its tender for the grant of L-9/CLW-1 licence for the supply of country liquor for the year 1992-93 to the extent and at the rates mentioned in that letter. The petitioner was asked to supply 5% of the total supply of the country liquor. The offer for grant of the licence was made to the petitioner subject to the terms and conditions for grant of licence for the year 1992-93. The petitioner was asked to complete the formalities mentioned in that letter by 14th May 1992. On 13th May 1992 itself petitioner replied stating that the limitation of quantum of 5% was far short of economic scale of operation which stood at 1o%. The petitioner urged upon the Commissioner of Excise to consider granting 14% of the quantum of the total supply to it and also stated that in case the same is not acceptable the petitioner will agree if 10% of the total supply is allocated to it. The petitioner further stated that if Commissioner, Excise finds it difficult to enhance the quantum it would be unable to accept the offer of 5%. On refusal of the petitioner to accept the offer of 5%, on 13th May 1992 itself, the Commissioner of Excise allocated the said 5% quantity to Sir Shadilal Distillery. The rest of the quantity allocated by the Commissioner of Excise on 13th May 1992 was as under:- <FRM>JUDGEMENT_503_DRJ25_1993Html1.htm</FRM> After aforesaid allocation had been made the petitioner by letter dated 16th May 1992 informed the Commissioner of Excise that it had reconsidered the offer and was agreeable to accept the offer of supply of 5%.

(2.) In early June, 1992 the Central Distillery expressed its inability to supply 40% of the quantity allocated to it and obtained reduction of its allocation from 40% to 20%. Out of the 20% surrendered by the Central Distillery, 15% was allocated to respondent No.5 and 5% to Sir Shadilal Distillery. The re-allocation was made on 13th June, 1992 and thus the revised allocation of Cooperative Company became 55% and that of Sir Shadilal Distillery became 10%. By letter dated 27th June, 1992 the Collector of Excise informed the petitioner that the earnest money of Rs.5 lakhs deposited by it with the tender has been forfeited by the competent authority.

(3.) Before filing the petition the petitioner did not write any letter to the respondent authorities either objecting to the forfeiture of the earnest amount or to the allocation or re-allocation of the quantity of the country liquor to be supplied to the Delhi Administration. On 14th September 1992 the present petition was filed seeking these reliefs:- <PG>505</PG>