CHAMUNDESHWARI CORPORATION Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) IN this writ application the petitioner seeks appropriate direction upon the respondents to issue dispatch instruction and take delivery of 2149 Adult Weighting Scales by making payment of the price thereof as agreed in terms of the agreement entered into by the respondents under the World Bank Integrated Child Development Scheme.

(2.) PETITIONER 's case is that it is authorized agent of manufacturing unit of weighting machines and deals in business, amongst others, supply of such articles on payment. On 28.12.1999 the Government of Bihar, Welfare Department invited tenders for supply of Adult Weighting Machines for supplying to Angan Bari Centers in the district of East Singhbhum and Palamau. Petitioner's tender was accepted for supplying of the weighting machines and on 14.11.2000 an agreement was entered into for the supply of 2149 numbers of Adult Weighing machines, the total value of which being Rs. 14,84,959/ -. The tender was invited by the Government of Bihar, Welfare Department under the World Bank assisted ICDC II project management. The petitioner's case is that after the agreement was entered into a huge investment of amount was incurred for making all those machines ready for supply and intimidated the Project Coordinator, World Bank assisted ICDC Patna for inspection at the factory premises. The inspection team thereafter inspected the said stock and found that the adult weighing machines were in conformity with the technical specification as approved by the State Level Project Committee. The petitioner thereafter several times requested the Project Coordinator to issue dispatch order so that the supply may be made to Angan Bari Centers in the district of East Singhbhum. In response to the said letter dated 20.2.2001 the Procurement Officer, Patna vide letter dated 26.2.2001 informed the petitioner that supply order will not be issued due to reorganisation of State of Bihar and formation of the new State of Jharkhand. It appears that in the meantime by letter dated 17.9.2001 the Secretary Government of Jharkhand requested the Senior Project Officer, World Bank Project Management Cell Government of India for making available fund for procurement of machines. The petitioner also wrote letter to Director Social Welfare Government of Jharkhand intimating that delivery instruction has not been issued till date.

(3.) MR . N.N. Tiwary learned Senior Advocate appearing for the petitioner submitted that the respondents are bound to carry put the obligations created under the agreement and they cannot back out from the agreement merely because of the creation of State of Jharkhand. Learned counsel drawn my attention to Sections 54 and 55 of the Bihar Reorganisation Act and submitted that the State of Jharkhand cannot deny their liability in fulfilling the terms of the agreement.