KUSHAL INDUSTRIES Vs. VICE CHAIRMAN AND MANAGING DIRECTOR

JUDGEMENT

(1.) The petitioner is a proprietary concern, undertaking the activity of transport Andhra Pradesh State Civil Supplies Corporation, the 1st respondent, hereinafter referred to as "the Corporation", is a State Agency, entrusted with the functions of supply and distribution of essential commodities in the State, particularly, to the Fair Price Shops. The Corporation issued a tender notice dated 25.6.2005, inviting tenders for assigning the contract of transporting the essential commodities, from various godowns to the Fair Price Shops in various districts. The petitioner submitted its tender in relation to the transporting of essential commodities in Adilabad District, along with few others.

(2.) Through its order dated 29.7.2005, the Corporation assigned the contract in favour of the petitioner, by treating the offer at Rs.7/- per Metric Tonne, for 16 K.Ms. and Rs.3/- per Metric Tonne, for each kilometer, beyond 16 KMs. The petitioner assails the said order, by contending that the offer made by it for the first 16 K.Ms, was Rs.7 /-, per Metric Tonne, per Kilometer, and not for the entire distance of 16 K.Ms. The petitioner alleges that the action of the Corporation, in assigning the contract with the above said rates, is contrary to the offer made by it, as well as the contents of the tender notice. It seeks a declaration to the effect that the impugned order is illegal, arbitrary and unenforceable in law, and seeks direction to the Corporation to act on the basis of the letter, dated 29.7.2005 addressed by it. During the pendency of the writ petition, the Corporation cancelled the impugned order and awarded the contract in favour of the 3rd respondent.

(3.) Petitioner contends that the conditions incorporated in the tender form, particularly with reference to the units for which rates are to be quoted, are uncertain and inconsistent, and when the same was noticed, it has submitted as many as three representations, making it clear that the rate quoted by it, with reference to 16 KMs distance is per Metric Tonne, per Kilometer, upto that distance, and not for the entire distance of 16 KMs. Petitioner urges that in spite of such representations and oral submissions during the negotiations, the Corporation proceeded to pass the impugned order, with an ulterior motive.