DAMANIA INDUSTRIES LIMITED Vs. STATE OF ORISSA

JUDGEMENT

(1.) The action of the State in accepting the tender of opposite party No. 3 for setting up the Carcass and By-products Utilisation Centre at Patha, Cutttack, is the subject-matter of this writ petition.

(2.) The action of the State is assailed, inter alia, on the ground that it has acted unfairly by giving undue preference to opposite party No. 3 and excluding the tender of the petitioner with mala fide intention. It is further alleged that the petitioner has been discriminated against and that the authorities have acted arbitrarily, unreasonably and in utter violation of the terms and conditions laid down in the tender notice. It is also alleged that the action of the State is against public policy, as it could not be in the public interest to make payment in foreign currency, namely, Danish Kroner, in this case.

(3.) The facts giving rise to this petition are that subsequent to the date of decision to set up a Carcass Utilisation Plant and Liquid Nitrogen Plant, a notice inviting tenders (NIT) was published on 19-11-1994 for the project which was to be on turn-key basis. A corrigendum thereto was published on 29-12-1994. In response, fifteen firms including the petitioner and opposite party No. 3 submitted their tenders. On 11-1-1995, the tender papers were opened and after scrutinisation thereof, thirteen were rejected and two, namely, that of the petitioner and opposite party No. 3, were found to be in order. Accordingly, they were short-listed. Thereafter, the purchase committee met on 29-4-1995 when the tender of opposite party No. 3 was partly accepted and in respect of certain item, a decision was taken by the committee to publish a fresh NIT for the same. Thereafter on 19-10-1995, the State and opposite party No. 3 entered into a memorandum of understanding. On 28-11-1995, opposite party No. 2 moved the Central Government for approval of its action. These facts are not disputed.