DIPAK HANDLING AGENCY Vs. MINERALS AND METALS TRADING

JUDGEMENT

(1.) THE petitioner assails the action of the opposite party No. 1, the Minerals and Metals Trading Corporation Ltd., Barbil (for short 'M.M.T.C.') cancelling his tender and giving the contract to the opposite party No. 2, as arbitrary and violating the principles of natural justice.

(2.) THE petitioner's case is, opposite party No. 1 is a Government of India Undertaking Corporation. It floated tender dated 15.3.1996 under Annexure -1 inviting offer from approved contractors for loading (by hand and machine), levelling of iron ore unloaded in their dumps at Barbil, Banspani, Barajamda, Noamundi and Gua. The petitioner, a contractor, along with others including opposite party No. 2 submitted tenders after observing all formalities relating thereto and tenders were scheduled to be opened on 25.3.1996 at 4'O clock. It is his further case that the tenders were not opened as per the scheduled time but surprisingly on 22.4.1996 the petitioner received letter of the opposite party No. 1 intimating the cancellation of his tender with a request to take back earnest money of Rs. 2000/ -. This was done under Annexure -3. Since no reason was assigned of such cancellation, the petitioner by his letter dated26.4.1996 (Annexure -4) requested opposite party No. 1 to intimate the reason for cancellation of tender. The opposite party No. 2 under Annexure -7 dated 1.5.1996 intimated him that they had the right to reject any tender without assigning reason. By order dated 23.4.1996, the opposite party No. 1 after entering into negotiation with opposite party No. 1 awarded the contract to him. This action of the opposite party No. 1 is challenged in this writ petition.

(3.) MR . S.S. Das, learned counsel for the petitioner strenuously urged that the petitioner's firm along with others submitted tenders and even though the opposite party No. 1 cancelled tender of all, it being an instrumentality of the State, should not have violated principles of natural justice by not inviting the petitioner for negotiation notwithstanding the fact that the rate quoted by the petitioner was the lowest of all.