SURENDRA PAL SINGH Vs. ZILA PARISHAD

JUDGEMENT

(1.) What is challenged in this appeal is an order by which the trial court has refused to grant ad interim injunction to restrain the respondent, Zila Parishad from interfering in his right to transport cattle to and from the weekly cattle fair held in village Banat, in District Muzaffarnagar during the years 1990-91 to 1993-94.

(2.) The dispute erupted in this manner. On 9-1-1991 the Zila Parishad invited offers in sealed tenders by 15-1-1991 for grant of contract of loading and transporting cattle for a term of 1 year, 2 years and 3 years alongwith a security deposit of Rs. 25,000. These tenders were to be opened at 11 a.m., on 16-1-1991 in Shamli and could be rejected by the Chairman of Zila Parishad (District Magistrate, Muzaffarnagar) without assigning any reason. The notice inviting tenders also mentioned that a public auction will also be held on 16-1-1991 for grant of contract for a period of 3 years but only those who deposit a security of Rs. 25,000 could make bids in the auction. The person making the highest bid was required to deposit the amount payable for one year immediately after the conclusion of the bids, but deposit of that sum was only in the expectation of the bid being accepted by the Chairman who had reserved to himself the right to reject the bid without assigning any reason.

(3.) It is not disputed that in the auction held on 16-1-1991 the plaintiff made the highest bid of Rs. 18 lacs for three years and he deposited a sum of Rs. 6 lacs immediately thereafter. The Chairman however, refused to accept this bid and hence another auction was notified on 22-1-1991 fixing 4-3-1991 as the date of that auction. Alarmed by this turn of events, the plaintiff rushed to the Court for pre-empting the re-auction and filed a suit for permanent injunction on 23-2-1991. He also prayed for permanent injunction to restrain the Zila Parishad from interfering in his right to carry on the transport business on the ground of his highest bid in auction held on 16-1-1991 should be deemed to have been accepted and the said contract could not be re-auctioned on 4-3-1991. In substance, the ground of attack by the plaintiff was that the Zila Parishad having once settled the rights to transport cattle to the fair and plaintiff having complied with all the conditions which he was required to perform, the Chairman had no right to reject his bid. Inherent in this submission is the plea that the Chairman was bound to accept the highest bid as it had neither been rejected and communicated to him within a reasonable time nor there was any material for rejecting it. It is also pleaded that the action of the respondent was arbitrary and uninformed by reason. For all these reasons the legality of the order rejecting the bid is assailed. The appellant felt that he is armed with a direction authority on the point in the case of Zila Parishad Muzaffarnagar Vs. Udai Veer Singh, 1989 RD 51 : 1989 ALR (R) 42 which has been used as a sheet anchor of the arguments alongwith some other decisions on either side.