JITENDRA AGRAWAL Vs. STATE OF M P

JUDGEMENT

(1.) IN both the present petitions the challenge is to the legality and validity of the condition No. 2 in the letters of offer dated 20. 6. 2008 which stipulates that the rates quoted therein shall be exclusive of VAT and other taxes. The petitioners have also prayed for quashing of the amended supply order dated 19. 7. 2008 as contained in Annexure P-12 and further for issue of a writ of certiorari to restrain the respondents from taking any action for recovery of the amount on the strength of the order dated 19. 7. 2008 as well as the condition No. 2 of the offer dated 20. 6. 2008. Thus, the questions of fact and law involved in the present writ petitions being similar, both the petitions were heard together and are disposed of by this singular order.

(2.) THE petitioners engage in the business of supply of cement and they are authorized dealers for sale and supply of cement of various cement companies. The petitioners are also registered suppliers with the second respondent, namely, M. P. Laghu Udyog Vikas Nigam Limited, which is an undertaking of the Government of Madhya Pradesh for procurement of cement in various government departments. According to the petitioners, for the past several years they have been regularly and successfully supplying cement to various government departments as per the supply orders and directions of the second respondent.

(3.) IT is stated that in the month of October, 2007 a Notice inviting Tender (NIT) was issued by the respondent No. 2 for procurement of cement and thereafter a rate list, as contained in Annexure P-2, was issued which was valid for a period upto 16th January,2008. The petitioners participated in the NIT and they were issued orders for supply of cement, which are contained in Annexure P-3. It is alleged that after expiry of rate list on 16. 1. 2008 no fresh NIT was issued but various registered supplies including the petitioners were issued conditional orders (Annexure P-4) asking for supply of cement subject to a condition that "if lower rates are approved in new tender then approved lower rate will be applicable in this supply, indenter/consignee should withheld 25% payment in this supply order, which should only be released after getting confirmation from this office". Admittedly, the petitioners made supply of cement to the various government departments in pursuance of the aforesaid supply orders.