A V LAKSHMINARAYANAN Vs. SPECIAL OFFICER

JUDGEMENT

(1.) This writ petition has been filed by the petitioner for issue of a writ of mandamus directing the respondents 1 and 2 to accept the highest tender of. the petitioner and to give the right to purchase the bagasse from the 2nd respondent Sugar Mill for the Sugarcane for the year 1987-88.

(2.) The material averments found in the petitioner's affidavit are as follows : The first respondent published an advertisement in Daily Thanthi, Tamil newspaper dated 24-12-1987, calling for sealed tenders on or before 4-1-1988 from intending purchasers of bagasse from the sugar mills in the State of Tamil Nadu. In accordance with the said publication, the petitioner submitted his scaled lender quoting his price in accordance with the procedures and rules for the purchase of bagasse. The total quantity of bagasse anticipated to be available for sale in the 2nd respondent Sugar Mills was 5,000 tonnes. The following persons submitted the tenders for the purchase of baled and loose bagasse from the 2nd respondent Sugar Mills at the prices indicated against each : <FRM>ASH424J.htm</FRM> These sealed tenders were opened on 4-1-1988 in the presence of the Special Officer of the 1st respondent and the tenderers. According to the petitioner, he is the person who has quoted the highest prioe for loose bagasse. It is stated that baled bagasse were not available in the 2nd respondent mills and that only loose bagassee was available at that time. Therefore, according to him his rate ought to have been accepted and bagasse ought to have been supplied to him for the year 1987-88. The petitioner claims he has got past experience in lifting bagasse from sugar mills and as a matter of fact, he has lifted considerable quantities of bagasse from the second respondent sugar mills during the previous year. While so, the first respondent has given the right to purchase the bagasse at the rate of Rs. 110 per metric tonne to the 3rd respondent, even though his tender was only Rs. 125 as against the tender of the petitioner for Rs. 150.50 per metric tonne. There was no negotiation after the opening of the tenders. That being so, the acceptance of the tenders of the third respondent either for the price he has quoted or for any other price can be done only by private negotiation and they cannot do it behind the back of all the other tenderers and without giving an opportunity to others to negotiate the price with the respondents 1 and 2. The third respondent cannot be given special treatment after calling for sealed tenders. The petitioner being the tenderer for the highest price ought to have been given an opportunity to raise price by private negotiation. The first respondent being a public authority cannot discriminate the tenderers, who had offered more price with better experience and efficient in favour of persons who have offered lesser price and who could not be compared with the petitioner in efficiency in the matter of payment.

(3.) A counter affidavit was filed by the first respondent raising the following contentions : The fact that such tenders were called for is not disputed. According to them, when the tender was opened on 4-1-1986 none of the tenderers came up to the expectation of the standard price in respect of loose bagasse at the rate of Rs. 160 per metric tonne. Therefore, no tender was accepted and in fact all the tenders have been rejected. In the tender, M/s. Hindustan Papers Limited, a Government of India undertaking has quoted the highest rate of Rs. 200 per metric tonne for purchase of baled bagasse from the 2nd respondent Sugar Mills. After opening the tender they indicated that the officials of M/s. Hindustan Paper Mills Private Limited have quoted the highest rate and asked them to lift baled bagasse at Rs. 200 per metric tonne and loose bagasse at the rate of Rs. 160 per metric tonne. As the bagasse had to be transported immediately and the mills had no facilities for baling, the mills expressed their inability to supply baled bagasse. It was stated on behalf of the mills that large quantities of bagasses accumulated affecting the working of the mills considerably. In the meanwhile, the Tamil Nadu Agro Industries Corporation, a Government of India undertaking requested the first respondent to allot loose bagasse from the second respondent mills for their own use. As no one quoted the expected rate of Rs. 160 per metric tonne for the purchase of loose bagasse, the first respondent rejected all the tenders and decided to allot available bagasse to the said Corporation. Accordingly, 1,000 tonnes of bagasse was supplied to them at the rate of Rs. 160 per metric tonne, which was subsequently reduced to Rs. 157per metric tonne. The third respondent, M/s. Sekhar Agencies, whose tender also was not accepted, were supplied with 2,000 tonnes of bagasse at the rate of Rs. 157 pec metric tonne, as the Sugar Mill had no adequate place to store the bagasse. Apart from that the first respondent permitted the second respondent to dispose of bagasses by open offers at the rate of Rs 157 per metric tonne. The performance of the petitioner and their associates was not satisfactory during the previo s year, tor instance the first respondent allotted 1,000 tonnes of loose bagasse of Thirupathur Co-operative Sugar Mills and asked the party to remit a sum of Rs. 5,000 as deposit. But, he did not remit the amount and he did not lift a single bagasse. When the party kept silent for all the days and which he came up with a proposal for extension of time, his request was negatived considering his past experience. Apart from that he was acting as an agent for R. Ramesh to whom the allotment of bagasse was made. But, the party has failed to allot the bagasse as agreed by them. The petitioner is responsible for the said transaction. The Special Officer, Sugar Federation has rejected the offer of the petitioner by virtue of his powers conferred in Clause 12 of the terms and conditions of the tenders and allotted 1,000 tonnes to the said Corporation at the highest rate. There is no violation of any rule or regulation.