HARI OM Vs. STATE OF M P

JUDGEMENT

(1.) By this order M.P. No. 3912/86 P.M. Patel v. M.P. Rajya Laghu Van Upaj (Vyapar Avam Vikas) Sahakari Sangh Maryadit and another is also disposed of M.P. No. 417/86 M.A. Waheed v. M.P. Rajya Laghu Van Upaj (Vyapar and Vikas) Sahakari Sangh Maryadit and another was also heard along with these two petitions but the petition was withdrawn at the stage of hearing. This petition is being mentioned as there may be reference to certain documents which have been filed in that petition and not in these two petitions. In the first petition the petitioner is challenging the tender notice issued by State of M.P. on 8-12-86 inviting tenders for appointment of agents under S.4(1) of M.P. Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964 (hereinafter referred to as Adhiniyam), and also the tender notice issued by M.P. Rajya Laghu Van Upaj (Vyapar Avam Vikas) Sahakari Sangh Maryadit (hereafter referred to as Sangh) dated 2-12-1986 inviting tenders for purchase and disposal of Tendu Patta in different units. In the second petition the petitioner is challenging the policy decision of the State Government not to renew the agreement executed in the previous year and for enforcement of renewal Cl.29 of the petitioner's agreement.

(2.) Tendu tree is a wild growth and found in abundance in the State of M.P. Tendu leaves are forest produce which are mainly used for manufacture of bidis after curing them. Tendu Pattas are mostly available in Government forest but they are also available in private land though in much lesser quantity. With a view to regulate in the public interest the trade of Tendu Leaves by creation of State monopoly in such trade M.P. Tendu Patta (Vyapar Viniyaman) Adhiniyam, 1964, was enacted. Under S.3 of the Adhiniyam, the State Government may divide every specified area into such number of units as it may deem fit. Under S.4 the State Government may, for the purpose of, and trade in, tendu leaves on its behalf, appoint, agents in respect of different units and any such agent may be appointed in respect of more than one unit. The terms, conditions and the procedure for appointment of agent shall be such as may be prescribed. S.5 restricts purchase or transport of tendu leaves except by the State Government or its officer or agent. Under S.7 the State Government has to fix price at which tendu leaves shall be purchased by it or its agent from the growers of tendu leaves other than the State Government. The State Government has to set up depots in each unit for purchase of tendu leaves offered by the growers and under S.9 the State Govt. or its agent has to purchase the tendu leaves offered to them. Every grower of tendu leaves other than the State Government shall get himself registered if the quantity of leaves grown by him during a year is likely to exceed the prescribed quantity. Every manufacturer of bidis and every exporter of tendu leaves have to get themselves registered under S.11. Tendu leaves purchased by the State Government or its officer or agent shall be sold or otherwise disposed of in such manner as the State Government may direct under S.12. The State Government has been empowered under S.19 to make rules to carry out all or any of the provisions of the Act Accordingly, M.P. Tendu Patta (Vyapar Viniyaman) Niyamavali, 1965, (hereafter referred to as the Rules) have been framed. Agents have to be appointed under R.3 by inviting , applications. The application shall be in Form-A and a person or party appointed as an agent shall furnish declaration in Form-B.

(3.) The season for the collection of tendu leaves commences each year by the end of April till the break of monsoon in middle of June. Tendu tree's have to be pruned in February/March in order to get better leaves. Under R.7 of the M.P. Tendu Patta (Vyapar Viniyaman) Nivamawali, 1965. Government used to invite tenders for the purchase of tendu leaves on the basis of standard bag price, subject to the terms and conditions of the tender notice. These rules were revised and 1966 Rules were brought into force after the decision of this Court in Chhotabhai Jethabhai Patel and Co. v. State of M.P., 1965 MPLJ 733. The arrangement continued till 1979. Later on, the Government decided to appoint purchasers on lump sum basis for each unit with renew clause and some units were reserved in favour of the Sangh. Tender notices are generally given in December for the following season and every year spate of writ petitions are filed challenging changes in policy. In the year 1964, the Government did not disclose the upset price of the respective units though the Sangh gave out the upset price. This and other conditions of tender were subject-matter of challenge in writ petitions. This Court in Anup Kumar Jain v. State of M.P., M.P. No. 753 of 1984, D/-18-4-1984 overruled the objections and held that non-disclosure of upset price was a device to promote better competition amongst the bidders, which was neither arbitrary nor unreasonable. In the year 1965 (1985 ?), tenders above the upset price alone were accepted and fresh tenders invited on 15-3-1985. Since the fresh tenders were further below the upset price and the Sangh started accepting tenders by lowering the upset prices even below 30% of the upset price, this was challenged by tenderers whose tenders were accepted at or above the upset price and an Bhika Bhai Mehta v. State of M.P., M P. No. 1086 of 1984 and in other petitions this Court directed that all tenders at or above the upset price alone be accepted as a consequence, tenders were invited afresh on 15-4-1985 but offers were still lower. This Court by interlocutory order dated 22-4-1985 observed that accepting tenders at much below the upset price would put the State to loss of over rupees 30 crores. However, the Court left the matter (sic) it thinks appropriate as it was already late. The petitions are still pending. In the year 1986 the tenders even above the upset price were not accepted and fresh tenders were called. This was challenged in number of petitions and this Court by order dated 14-3-1986 in M/s. Jai Durga Traders v. M.P. Rajya Laghu Vanopaj, M.P. No. 457 of 1966 (Vyapar Avam Vikas) Sahakari Sangh Maryadit, accepted the contention of the State that as still higher prices were expected and tenders below the upset price would be rejected, dismissed all the petitions. In the present case, the State Government by its agent (sic) under Section appointed the Sangh as its agent under S.4(1) for 17 districts mentioned therein for collection and disposal of tendu leaves.