ORISSA SMALL SCALE INDUSTRIES Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN these two writ petitions, the four associations, namely, Orissa Small Scale Industries Association, Utkal Chamber of Commerce and Industry Limited, Orissa Young Entrepreneurs Association and Orissa Assembly of Small and Medium Enterprisers have challenged the decision of the State Government in the School and Mass Education Department to place orders for purchase of compact Desk cum Bench (dual desk) with organisations other than those who are rate contract holders under the State Government. Their case in the writ petitions is that in the Industrial Policy Resolution, 2001 (for short, 'the I.P.R.') of the Government of Orissa, it is clearly stipulated in paragraph 24.5 that the State Government Departments and agencies under the control of the State Government will purchase the rate contract items from the rate contract holder/ small scale industry at the price fixed without inviting tenders. Their further case in the writ petition is that in Appendix 6 of the Orissa General Financial Rules (for short, 'the O.G.F.R.') Vol. II there is also a stipulation that in respect of items of Stores for which rate contract has been entered into by the Director of Export Promotion and Marketing, purchase of such items by all Departments of Government, Quasi Government agency and State owned corporation should be only from sources with whom such rate contracts have been entered into. Hence, the Government could not have placed orders for purchase of dual desk with organizations other than rate contract holders contrary to the aforesaid stipulations in the I.P.R. 2001 and the O.G.F.R., Vol. II.

(2.) WE called upon the State Government to produce before us the records in which the decision was taken to place orders of dual desk and we find from the said records that the State Level Purchase Committee in its meeting held on 31.8.2002 recommended that Dual Desks as per requirement are to be purchased from the Orissa Small Industries Corporation (for short 'the OSIC') and the OSIC is to procure the items from small scale industries having EP and M rate and contract. The reasons for this recommendation is in paragraph 6 of the proceedings of the State Level Purchase Committee held on 31.8.2002 and are quoted herein below :

(3.) MR . S. P. Mishra, learned counsel for the petitioner, on the other hand, submitted the when the I.P.R. and the O.G.F.R. Vol.II were clear that purchases of such items by all Departments of Government, Quasi Government agency and State owned corporations are to be only made from sources with whom rate contracts have been entered into, there was clear violation of I.P.R. and the O.G.F.R., Vol. II in placing a large part of the orders with organizations other than the rate contract holders/small scale industry.