KESAR ENTERPRISES LIMITED Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) Country spirit is sold by retailers, who are selected by an auction sale. The contractors, who are selected after inviting sealed tenders, supply it in every district at fixed rates. They (contractors) before their selection also file an undertaking before the Excise Commissioner that they will abide by the rate fixed by him and in fact supply country spirit throughout the State at the same rate fixed by the Excise Commissioner. In light of these facts.What is the relevance of tendered rates by the contractors ? Have they become irrelevant? Is there any point in calling sealed tenders? Sans a contract still be awarded to a contractor on the basis of tendered rates ?This is the main question involved in this writ petition. It arises on the following facts.THE FACTS

(2.) The Excise Commissioner, Allahabad published a tender notice on 13-1-2000 inviting tenders for allotment of various districts to the contractors for supply of country spirit for the excise year 2000-2001. The tenders were to be submitted by 3p.m. of 4-2-2000 and were to be opened on the same day at 4 p.m. Sri R.K. Goswami, Secretary General of U.P. Distillers Association (the UPDA) submitted tenders on behalf of 15 distiller of the State for different districts. The petitioner was one of the 15 distilleries represented by the UPDA and had given tender apart from other districts for district Sultanpur. He had supplied country spirit for district Sultanpur in the previous excise year. The Bajpur Distillery and Chemical Works Bajpur, district Udham Singh Nagar (the contesting respondent) also submitted a tender, apart from other districts for district Sultanpur. Tenders were opened on 4-2-2000 and the participants noted down the rates. They were requested to appear before a committee for further negotiation on 16th and 17/02/2000.

(3.) In recent years, a practice has also developed; the participants are required to submit an undertaking in form of an affidavit that they will abide by the rates fixed by the Excise Commissioner and he fixes same rate for the entire State. The contractors for many years have been supplying country spirit at the fixed rate throughout the State. In this case, some participants had given their undertaking earlier in the form of an affidavit some filed their affidavits afterwards some did not file any affidavit but during negotiations a representative of the UPDA on behalf of 15 distilleries (including the petitioner) orally agreed to supply country spirit at the rates fixed by the Excise Commissioner and affidavits were filed later on. The petitioner also filed his affidavit, sworn on 21-2-2000. In short everyone agreed to supply country spirit at the rates to be fixed by the Excise Commissioner.