PAPPU BALKRISHNA DAS Vs. STATE OF BIHAR

JUDGEMENT

(1.) THESE two applications under Articles 226 and 227 of the Constitution of India raise the common question of law and the facts in the two cases are also more or less similar, therefore, both of them were heard together and they will be governed by this common judgment. It may be noted that case No. 79 of 1971 was originally under Section 561-A of the Criminal Procedure Code. However at a subsequent stage the same was treated as one under Articles 226 and 227 of the Constitution of India. The petitioner in case no, 79 of 1971 is the Assistant Director Purchase and Transport. River Valley Project Department. Government of Bihar whereas P. K. Thakur petitioner in case no, 86 was the Director of Purchase of the said Department at the relevant time. At present however he is the Chief Engineer Mechanical Roads Wine. Transport and Shipping Ministry at New Delhi. Against both the petitioners first information report vide Annexure 6 to application no. 79 was lodged under Sections 5 (1) and 5 (2) of the Prevention of Corruption Act. 1947 at the instance of Anti-Corruption Department (Respondent No. 3) for showing undue favour to M/s. Hindustan Wires Ltd. Calcutta by placing order of G. I. wires. On the order of City Superintendent of Police respondent no. 4 P. S. Case NO 27 dated 15-9-1971 was recorded against the petitioners and the investigation by the officer-in-charge of the Police-station was also started in the said P. S. case. Therefore, both the petitioners in the application prayed for quashing the said P. S. Case and meanwhile they had also prayed for staying the investigation. This Court while admitting the applications however did not stay the investigation. In the applications the petitioners have impleaded the State of of Bihar and the Department of River Valley Project as respondents 1 and 2 respectively. In case no. 86 however the petitioner has impleaded also the Deputy Superintendent of Police. Anti-Corruption Department as respondent no. 5. In case no. 79 a supplementary affidavit dated 1-11-1971 was also filed on behalf of the petitioner. Cause has been shown in both the cases by respondent No. 1 by filing a counter-affidavit dated 24-11-1971. The affidavit has been sworn Contd. on Col. 2

(2.) MR. K. K. Sinha. learned Counsel appearing for the petitioner in case No. 79. submitted that no irregularity has been committed while placing the order for supply of G. I. wires with Hindustan Wires Ltd.. Calcutta and all the relevant procedure prescribed by the memorandum on the purchase procedure laid down by Govt. of Bihar River Valley Project Department have been duly followed. The G. I. wires were required for preparing crate in order to check the ravages of Kosi flood. He pointed out that a notice inviting tender for the supply of G. I. wires was issued by the department on 11-12-1968. The last date to receive the tender was 15th of January. 1969. Ultimately the orders were placed with M/s, Singhania Industrial Company, Calcutta, for supplying 450 metric tonnes and further order was placed with M/s. Aryan Engineering Allied Industries for supply of 50 M. T. but both the companies backed out. On the 30th January 1969, therefore, again a notice was issued inviting tender for supply of 1435 M. T. of G. I. Wires and the said notice was published in various important newspapers throughout the country. In response the following six firms. @ Rs. 1530 per M. T @Rs. 1331 per M. T. @ Rs. 1358 per M. T. @ Rs. 1365 per M. T. @Rs. 1370 per M. T @ Rs. 1420 per M. T. tender of M/s. Power Transmission and Casting Company. Howrah, and Hindustan Wires Ltd. Since the former firm was a small manufacturing company the order of only 535 M. T. was placed with them on the 26th of March, 1969 to supply G. I, wires within two months. On the same day i. e.. on the 26th of March. 1969 the order to supply 700 M, T. of the said wire within three months was placed with Hindustan Wires Ltd. as the record of the department showed that in the past they had shown satisfactory conduct. For the balance of the requirement, that is, 200 M. T. it was decided by the department to place order with Power Transmission and Casting Company or with Hindustan Wires Ltd, on their satisfactory performance in the matter of supply of G, I. wires. The power Transmission and Casting Company showed inability to supply 535 M, T. as there was sudden breakdown of the machinery on the 8th April 1969. and prayed for cancellation of the order. Since rainy season was fast approaching the department deputed Bindeshwari Singh, Suprintending Engineer to contact various firms including the Hindustan Wires Ltd. for the supply of 535 M. T. G, I. wires. As there was a tendency of a rise of price of such wires, no other firm agreed to supply the same, at the rate, at which the Power Transmission and Casting Company and the Hindustan Wires Ltd. had agreed. In that circumstance, the department requested the Hindustan Wires Ltd. to supply 535 M. T. also along with the earlier order for 700 M. T. which was placed with them. For the balance of the requirement i. e 200 M. T. since the Power Transmission and Casting Company had backed out, the department placed for supply of 200 M. T. G. I. wires also with Hindustan Wires Ltd. A repeat order as required under Rule 4.9 of the Memorandum on the purchase procedure hereinafter to be called as Purchase Procedure was made on the 7th of May. 1969. At the time of the said repeat order Hindustan Wires Ltd. had indicated that the raw materials for the G. I, wires were not easily available and therefore they had requested the Government to help them in getting the raw materials to enable them to supply wires in time. Raw materials could be had from Hindustan Steel Ltd. Bhilai. It was possible to get such raw materials only when a firm was registered with the Director General of Supply and Disposal and Iron and Steel Controller, Government of India. Hindustan Wires Ltd. had got themselves so registered. No other firms who had submitted tender were so registered and therefore those other firms were not entitled to get the raw materials from Hindustan Steel. since the department's anxiety was to obtain supply of G. I. wires as soon as possible because rainy season was fast approaching. P. K. Thakur petitioner in case no. 86 wrote a letter dated the 7th June. 1969 to the Secretary. Joint Plant Committee. The copy of the said letter is marked as Annexure 1. the relevant portion of which reads as follows: As flood protection works is of utmost importance you are requested to issue an overriding priority for supply of 6 mm dia M. S. wire rods to M/s. Hindustan Wires Ltd. for prompt execution of orders. It may kindly be ensured that. M/s. Hindustan Steel Bhilai supplies at least 100 M. T. of 6 mm rods to M/s. Hindustan Wire Ltd, every month. This may kindly be given top most priority.

(3.) MR. Sinha submitted that the 'Indian Nation' further came out with a longer report on the 27th October, 1969 in which it was said that the State Anti-Corruption Department had recommended that the Government should ask explanation from the three top officials of the Kosi Project Department for the alleged bungling of Rs. 20 lakhs in the purchase of galvanized wires. Therefore some of those officials were seeking permission from the State Government to proceed against the Indian Nation. Hence the matter was examined in greater detail by the Chief Administrator, MR. Abbas. He therefore referred his note Annexure 4 dated 14-11-1969 to Shri T, P. Singh one of the Advisers to the Governor during the earlier President's Rule. MR. Abbas also in his note had justified the deal and has mentioned therein that it was quite regular, He further mentioned that Hindustan Wires Ltd. are entitled to get supply of raw materials from the producers and it is for Iron and Steel Controller to ensure that all such manufacturers get their quota of steel. In that back ground Hindustan Wires Ltd.. wrote to the officers of the department about the difficulties which they were facing in obtaining 6 mm. wire rods. This led to the department to write to the Joint Plant Committee on the 7th of June. 1969. for help to the Hindustan Wires Ltd. in securing supplies from Hindustan Steel. Ltd Bhilai. MR. Sinha also referred to a portion of his note in this connection which reads: