UNION OF INDIA Vs. RAM DAS GOKO MAL

JUDGEMENT

(1.) -The question which arises in this appeal is whether a contract for supply of milk to Military Units can be entered into by negotiation without inviting open tenders. For the supply of milk to five Military Centres in Rajasthan, a negotiated contract was entered into between the appellant and the respondent No. 4, Rajasthan Co-operative Dairy Federation. This was done by entering into negotiations and no tender was invited. The respondent No. 1 is the writ petitioner and registered Military Contractor and he filed a writ petition to seek the relief that the contract granted to respondent No. 4 for supply of milk for the period 1-10-1990 to 31-3-1991, should be set aside and the other respondents should be directed to invite open tenders for grant of contract for supply of liquid milk and only thereafter a contract should be entered into.

(2.) The learned single Judge considered the contentions raised on behalf of both the sides and held that granting contract to respondent No. 4 by negotiation is arbitrary and unreasonable and, therefore, violative of Article 14 of the Constitution. It was also held that it has resulted in substantial financial loss to the public revenue. However, the contract for supply of liquid milk and milk products from 1-10-1990 to 31-3-1991, for five areas of Rajasthan was not quashed but it was directed that in future the authorities should invite open tender for supply of milk and milk products.

(3.) Feeling aggrieved against this decision, respondents Nos. 1 to 3 have preferred this appeal. Notice was issued to respondent No. 1, who is the contractor, who has strongly opposed this appeal. The learned single Judge at page 20 of the certified copy of the judgment has held that as there is no policy decision in favour of the Co-operative Societies as such, and only a circular has been issued from time to time and no policy decision has been taken, hence favour cannot be shown to Co-operative Societies. This observation of the learned single Judge is not correct, as from various circulars which we shall presently see, there is a policy decision taken by the Military Authorities by which negotiated contracts can be entered into with Co-operative Societies and State Government and some others.