(1.) We have heard the learned counsel for the petitioner Mr. Swatantar Kumar at length. We have also heard Mr. R.K. Anand on behalf of the respondents.
(2.) The relevant facts are the on 5-8-1986 respondent No. 2 invited tenders for the supply of fresh milk. The petitioner and one other party submitted their tenders. The price quoted by the petitioner was Rs. 4.50 per litre. On 6-9-1986 the tenders were opened and according to the petitioner which fact is not controverted by the respondents the panel of officers after opening the tenders negotiated the price with the petitioner and the petitioner agreed to supply milk at the rate of Rs. 3.99 per litre.
(3.) Pursuant to a policy contained in the letter Ext. R-2 dated 13-8-1985 of the Government for the year 1985-86 respondent No. 2 had negotiated the contract for the supply of the milk with the Government Milk Scheme, Chhindwara. The said scheme was valid up to September 1986. On <PG>112</PG> 11-8-86 the under Secretary, Ministry of Defence wrote to the Chief of the Army Staff conveying the sanction of the President for the continuance of the above policy upto 30-9-87. Under the said policy the Government is not obliged to call tenders.