ARTEE MINERALS FARIDABAD Vs. STATE OF U P

JUDGEMENT

(1.) S. C. Mathur, J. The dispute in this petition pertains to grant of contract for the supply of insecticides to the Medical and Health Department of the Uttar Pradesh Government. The dispute has arisen in the circumstances hereinafter indicated.

(2.) ON 17-5-1982 the Joint Director (Stores), Central Medical Stores Depot, in the Directorate of Medical and Health Services Lucknow, opposite party No. 3, invited tenders for the supply of 3600 metric tonnes of Banzyl Hexachloride (6. 5 gamma isomer W. D. P. ISI marked conforming ISI specification No. 562 of 78 with latest amendments), hereinafter referred to as the insecticides. Several firms including the six petitioners and opposite parties 4 to 6, submitted their tenders. In all twenty firms submitted the tenders, out of the twenty firms who submitted the tenders, the tenders of five were found to be not in order and, therefore, these tenders were rejected. The tenders were opened on 7-6-1982. ON 14-6-1982 the Central Purchase Committee decided that for firms situate outside the State of U. P. , the minimum rate of supply shall be treated as Rupees 7,525/- per metric tonne and for firms in the State of U. P. it shall be treated as Rs. 7,900/- by giving them preference of 5% in rates. It was also decided that telegrams be sent to firms which had been found qualified inviting from them quotations by 21-6-1982. In these quotations the firms were required to quote the minimum rate for the supply of the insecticides in question. In pursuance of this decision telegrams were sent on 15-6-1982 by opposite party No. 3 to the petitioners and respondents 4 to 6 and six other firms requiring them to quote their minimum rate for the supply of insecticides and the quantity which they were capable of supplying in the months of July and August. They were also required to quote the minimum rate for the supply of 1,400 metric tonnes which were to be purchased in February, 1983. In pursuance of the telegram, the petitioners and opposite parties 4 to 6 gave their quotations in sealed envelopes. These sealed envelopes were opened on 21-6-1982. The petitioners have annexed as Annexure No. 3 to the writ petition a comparative chart of the rates tendered or quoted by each of the six petitioners and opposite parties 4 to 6. This chart indicates that all the six petitioners quoted Rs. 7,490/- per metric tonne while opposite party No. 4 quoted Rupees 7,600/- and opposite party No. 6 Rs. 7,850/ -. The rates submitted by opposite party No. 5 varied between Rupees 7,290/- per metric tonne and Rupees 7,450/- per metric tonne depending upon the quantity. Thus the rates submitted by opposite party No. 5 were the lowest and the next lowest rate was of the six petitioners. The Central Purchase Committee again met on 24-6-1982 and recommended purchase of insecticide from five firms, including opposite party No. 4. The recommendations of the Central Purchase Committee were considered by the High Power Committee constituted by the State Government. In pursuance of the decision of the High Power Committee, the State Government issued its order dated 15-9-1982. In this order it is mentioned that the rate of Rs. 7,290/- per metric tonne is the lowest and, therefore, insecticide may be purchased at this rate from opposite parties 4 to 6. It may be mentioned that this was one out of the four rates quoted by opposite party No. 5. It was further mentioned that if these firms were not prepared to supply at this rate, supplies on pro rata basis may be obtained from other qualified firms if they were prepared to supply at this rate. In regard to opposite party No. 5 it was observed that at Lalitpur this firm had made supplies of substandard material and despite requests the firm did not send its representative for joint sampling. It was then mentioned that the firm had informed the department through its letter dated 9-9-1982 that it would replace the material at Lalitpur at its own cost and action for replacement may be taken through the Directorate. It appears that on coming to know of the fact opposite parties 4 to 6 have been required to supply insecticide at the rate of Rs. 7,290/- the petitioners made a representation to the Chief Minister offering reduction in their rates and offered the reduced rate of Rupees 7,190/- per metric tonne. Applications appear to have been made by the petitioners to the Director of Medical and Health Services and Secretary, Medical, Health and Family Welfare requesting them not to take action on the file regarding purchase of insecticide. The petitioner's further case is that they made a request for negotiations on the same terms and conditions on which they were made with opposite party Nos. 4 to 6 but the same was not accepted.