ASHOK C VORA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Rule. Service of rule is waived by A.G.P. Ms. Ami Yagnik, by learned Advocates Shri Kamal Trivedi, Shri S. B. Vakil and Shri N. V. Anjaria for Respondents Nos. 1, 2, 4 and 5 respectively. With consent of the learned advocates the petition is finally heard today.

(2.) The petitioner, a pro bono public, has approached this Court by way of a public interest litigation making a grievance with regard to huge expenditure incurred by Gujarat Industries Power Co. Ltd., which is a "State" within the meaning of Article 12 of the Constitution of India and respondent No. 2 herein, in the matter of giving contracts to respondents Nos. 4 and 5 worth Rs. 320 Crores regarding excavation and removal of overburden, that is, doing earthwork of removal of mud, etc. so that lignite can be exposed and taken out and transported to a power plant. It has been alleged in the petition that in a clandestine manner, respondent No. 2 entered into the contracts with respondents Nos. 4 and 5 at the behest of respondent No. 3, the then Chief Minister of the State of Gujarat.

(3.) Learned Advocate appearing for the petitioner has submitted that respondent No. 2 ought to have given Public Advertisement before entering into contracts with respondents Nos. 4 and 5 so that respondent No. 2 Company could have saved sizeable amount by getting more favourable offer from others. He has also submitted that substantial over payment could have been saved by inviting other persons for negotiation with respondent No. 2-Company before giving the said contracts. In support of the above referred submission, he has relied on the following judgments delivered by the Hon'ble Supreme Court :- (i) Haji T. M. Hassan Rawther v. Kerala Financial Corporation, AIR 1988 SC 157; (ii) Sachidahand Pandey v. State of West Bengal, AIR 1987 SC 1109; (iii) M. P. Oil Extraction v. State of M. P., (1997) 7 SCC 592 : (1997 AIR SCW 4104); (iv) Fasih Chaudhary v. Director General, Doordarshan, AIR 1989 SC 157.