JAGRAM JHARIYA Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) WE have heard learned counsel for the petitioner, learned counsel for the State, learned counsel for the respondent no.4 and learned counsel for the respondent no.5. The respondent no.4 and 5 have filed their returns also.

(2.) THE Gram Panchayat of which is respondent No. 2 is the Sarpanch, and of which respondent no.4 is the Up Sarpanch and which is known as Gram Panchayat, Ganesh Ganj, Tehsil Lakhanadon, District Seoni invited tenders for collection of fees from weekly market. THE petitioner was the highest bidder. According to the Rules called the Madhya Pradesh Gram Panchayat and Janpad Panchayat (Lease Of Collection Of Fees) Rules, 1995 framed under Section 80 read with section 95 of the Madhya Pradesh Panchayat Raj Evam Gram Swaraj Adhiniyam, 1993, 25% of the amount has to be deposited by the highest bidder immediately after acceptance of his bid. Rule 7(c) provides that if the highest bidder fails to make deposit of the said amount, his earnest money will be forfeited in favour of the Panchayat concerned and the auction would be deemed to be cancelled. In such situations a fresh auction is provided for in the said rule at the risk & cost of the highest bidder, who fails to make the deposit.

(3.) SO far as the second part is concerned, it is not disputed as a fact that the respondents, after the petitioner allegedly failed to make the deposit, awarded the contract to the respondent no.5 on the sole ground that he was the second highest bidder. A Resolution of the Gram Panchayat is relied upon in support of such action.