DADHI DAS Vs. STATE OF ASSAM

JUDGEMENT

(1.) The petitioners, erstwhile employees of the Assam Agro Industries Development Corporation Limited (hereafter referred to as the 'AAIDC' or the Corporation), hereby seek to activate the writ jurisdiction of this Court for their absorption in State Government Departments more particularly the Agriculture Department following the closure of the Corporation. They perceive the State's denial to accommodate them in its departments to be in imperious breach of its unqualified promise and/or representation to the said effect.

(2.) I have heard Mr. I. Choudhury, learned Counsel for the petitioners and Mr. H. Rahman, learned State Counsel, for the official respondents. None has entered appearance on behalf of the Corporation impleaded as respondent No. 7.

(3.) To comprehend appropriately the rival stands of the parties, it is unavoidably necessary to traverse their pleadings. With the development of agriculture in the progressive lines in the State of Assam, demand for seeds, fertilizers, pesticides and other infrastructural inputs increased which necessitated the installation of a suitable procurement and distribution system with a network percolating to the grass root level so as to facilitate availability thereof to the farmers in time. The AAIDC being conceived of to cater to these exigencies was incorporated and registered as a Government Company on 27.01.1967, under the Companies Act, 1956. At the time of its incorporation, there were two shareholders of AAIDC, namely, the Director of Agriculture, Assam and the Governor of Assam represented by the Secretary to the Government of Assam, Department of Agriculture. The Government of India having decided to come to the fold, the President of India acquired 50% share in the Corporation. Resultantly, the paid up capital of the Corporation was Rs. 2.20 crores held in equal shares by the Union and the State Governments. The Management of the AAIDC was vested in the Board of Directors appointed by the Government of Assam. Out of 12 such Directors including the Managing Director, six were State Government officials, three were Central Government nominees and the remaining three were non-official Directors nominated from amongst the public. Over the years, the Corporation developed a good infrastructure with efficient officers and trained employees in almost all the districts of the State of Assam for catering to the needs of agricultural development. The Department of Agriculture, Government of Assam, by its Memo No. AGA. 31/67/ Pt./ 35-A, dated 07.03.1977, made it mandatory for the Agriculture Department to procure all kinds of agricultural inputs required by it for implementation of various Governmental schemes through the Corporation. The AAIDC was made the sole procurement agency for all kinds of agricultural implements required by the Agriculture Department of the State. On being approved by the Finance Department of Assam, the Government also allowed the Corporation to charge a fixed margin on such inputs supplied to it for meeting its administrative expenses. It was clarified thereby that the Director of Agriculture or its nominee would venture to make purchases of the required articles through the Development Purchase Board only. The Director General, Bureau of Public Enterprises and Additional Secretary to the Government of India by the Office Memorandum dated 15.10.1980 issued certain directives with regard to purchase and/or price preference for products of Public Enterprises in competition with Private Sector Undertakings in the matter of purchase by Government Departments etc. The said office memorandum provided in particular that the State Government Departments and Public Sector Undertakings should invariably purchase their requirements from Public Enterprises wherever such undertaking were able to meet the demands. It also disclosed that subject to negotiation for an agreement on price, price preference of not exceeding 10% would be admissible to the Public Sector Undertakings.