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Supreme Court of India
M/S B.K. Enterprises vs The State Of Manipur on 12 November, 2021Author: M.R. Shah

Bench: M.R. Shah, B.V. Nagarathna

REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 6532 OF 2021

M/s B.K. Enterprises …Appellant

Versus

The State of Manipur and Another …Respondents

JUDGMENT

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment

and order passed by the High Court of Manipur at Imphal dated

04.11.2020 in Writ Appeal No. 28/2018, by which the Division Bench of

the High Court has disposed of the said writ appeal with the following

directions,

Signature Not Verified

Digitally signed by
RASHI GUPTA
a) The State Government and in particular, the Social
Date: 2021.11.12
17:29:54 IST
Reason:
Welfare Department shall take up immediate steps and issue
fresh NIT for transportation of food grains and Micronutrients

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under the WBNP within a period of 10(ten) days from the date
of receipt of a copy of this judgment and order;
b) The whole tender process including the issuance of work
order should be completed within 20(twenty) days from the date
of issue of fresh NIT; and
c) Till the completion of the tender process and issuance of
the work orders, the present arrangement for transportation of
food grains under the WBNP pursuant to the interim order of
this Court dated 19.2.2018 shall continue

M/s B.K. Enterprises has preferred the present appeal.

2. We have heard Shri Siddhartha Dave, learned Senior Advocate

appearing on behalf of the appellant and Shri Pukhrambam Ramesh

Kumar, learned Advocate appearing for the respondents.

2.1 At the outset, it is required to be noted that this is a glaring

example of lethargy on the part of the State Government in not inviting

the fresh tenders for transporting Rice & other micronutrients under the

Wheat Based Nutrition Programme (WBNP), from Food Corporation of

India’s depots in the State of Manipur, to the offices of Child

Development Project Officers and to continue the contract without

inviting fresh tenders on the basis of the Notice Inviting Tender (NIT)

issued on 22.06.2017 causing huge loss to the State and the Public

Exchequer.

3. That the State of Manipur through the Director of Social Welfare

Department, Government of Manipur issued a NIT on 22.06.2017 for

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transporting Rice & other micronutrients under the Wheat Based Nutrition

Programme (WBNP), from Food Corporation of India’s depots in the

State of Manipur, to the offices of Child Development Project Officers.

That the State’s Higher Tender Committee in its meeting dated

16.12.2017, recommended that the acceptable band of rate was

Rs.6.265 – Rs.11,635 per MT per KM and further recommended that

Route No.8 be awarded to one RK & Co. and that fresh tender should be

conducted for the other routes. That respondent no.2 awarded contracts

for all the routes to one RK & Co. by way of interim arrangement till the

finalization of the re-tender process. That the appellant herein filed a writ

petition before the High Court being Writ Petition (Civil) No. 63/2018

seeking award of tender with respect to route nos. 1,3,5 & 9 alleging inter

alia that being the lowest bidder as per Higher Tender Committee’s band

rate, it should be awarded the contract with respect to route nos. 1,3,5 &

9. During the pendency of the aforesaid writ petition, respondent no.2 –

Director, Social Welfare Department vide order dated 30.04.2018

cancelled the Higher Tender Committee’s proceedings and

recommendations dated 16.12.2017.

3.1 That the High Court vide order dated 20.06.2018 disposed of the

aforesaid writ petition with the directions to the respondents to constitute

a High Power Committee to proceed with the tender process afresh from

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the stage where and after the technical and financial bids opened by the

State/Director, Social Welfare Department and it should be completed on

or before 21.07.2018.

3.2 The appellant herein filed Writ Appeal No. 28/2018 before the

Division Bench of the High Court. Vide interim order dated 19.12.2018,

the Division Bench of the High Court directed for equal distribution of the

available WBNP rice amongst three contractors, namely, RK & Co., BLL

Enterprises and BLL Agency as a temporary arrangement of all nine

routes. The State entered into temporary distribution agreements with

the aforementioned bidders. By the impugned judgment and order, the

High Court has disposed of writ appeal no. 28/2018, with the following

directions:

a) The State Government and in particular, the Social
Welfare Department shall take up immediate steps and issue
fresh NIT for transportation of food grains and Micronutrients
under the WBNP within a period of 10(ten) days from the date
of receipt of a copy of this judgment and order;
b) The whole tender process including the issuance of work
order should be completed within 20(twenty) days from the date
of issue of fresh NIT; and
c) Till the completion of the tender process and issuance of
the work orders, the present arrangement for transportation of
food grains under the WBNP pursuant to the interim order of
this Court dated 19.2.2018 shall continue

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4. From the aforesaid, it can be seen that since 2017-18 the contract

for transportation of the rice and other micronutrients under the WBNP to

the offices of Child Development Project Officers has been continued

solely on the basis of the interim arrangement and without inviting fresh

tenders and without entering into any permanent contracts. To continue

with the contracts for transportation of rice and other micronutrients

within the State without any fresh tenders and by way of an interim

arrangement only and at the rates which were prevailing in the year

2017-18 has caused tremendous/huge loss to the State and the Public

Exchequer. Even after the impugned order is passed by the High Court,

which has been passed on 04.11.2020, by which the Division Bench of

the High Court has directed to take immediate steps and issue fresh NIT

for transportation of food grains and micronutrients under the WBNP

within a period of 10 days from the date of receipt of the judgment and

order and has further directed that the whole tender process including

issuance of work orders should be completed within 20 days from the

date of fresh NIT, no steps have been taken till date and the contract has

been continued which was by way of an interim arrangement only

pursuant to interim order dated 19.12.2018, causing further loss to the

State. The action on the part of the State Government and the Social

Welfare Department of the State of Manipur is highly deprecated.

Contracts cannot be continued without finalizing of the tender process

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and/or without issuing fresh tenders and/or without undertaking the fresh

tender process and by way of an interim arrangement only and that too

at the rates prevailing in the year 2017-18. It appears prima facie that

everybody is happy, namely, the officers of the State Government, more

particularly the officers of the Social Welfare Department and the

Contractors and it appears that the State is not interested in issuing fresh

NIT.

5. Learned counsel appearing on behalf of the State of Manipur has

stated at the Bar that now the State/concerned department has taken a

decision for appointment of Transport Contractor under the

Supplementary Nutrition Programme (SNP) and that the

State/Department is ready to float the tender within 10 days. It is

submitted that the entire process is likely to take about two months as

the opening of the financial bids and the verification of the technical bids

will take some time. Therefore, it is prayed to grant some reasonable

time to the State/concerned Department for completing the tender

process. It is stated that the State/Department undertakes to conduct

fresh NIT in a fair and transparent manner through e-Tender. It is

submitted on behalf of the State that the State/Department has not been

able to implement the order passed by the Division Bench of the High

Court dated 04.11.2020 in Writ Appeal No. 28/2018 because of the

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administrative difficulties and the State/Department tenders its

unconditional apology for the same. The aforesaid is a vague

explanation which is not accepted. It is very unfortunate that the contract

for supply/transportation of rice and other micronutrients under the

Development Scheme has been continued by way of an interim

arrangement only and without issuing any fresh tenders and the contract

has been continued at the old rates of 2017-18, which must have caused

tremendous/huge loss to the State and the Public Exchequer. There is a

total lethargic and negligence on the part of the State and its

departments in not issuing the fresh tender process and in not issuing

fresh NIT after 2018.

6. In view of the above, we dispose of the present appeal by directing

the respondents – State of Manipur and the concerned Department

including respondent no.2 to issue fresh NIT for appointment of transport

contractor under Supplementary Nutrition Programme (SNP), within a

period of 10(ten) days from today and it is directed that the fresh NIT is

conducted in a fair and transparent manner through e-Tender and

invitation of the fresh NIT shall be nation-wide and it is the duty of the

State/concerned Department to see that there is no cartel by the

contractors and that the maximum price is received and there is no loss

to the Public Exchequer and the State. The entire tender process be

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completed within a period of six weeks from the date of issuance of the

e-Tender. In the peculiar facts and circumstances of the case and only

with a view to see that there is no inconvenience caused to the

beneficiaries, the directions issued by the High Court relating to

transportation of goods under Supplementary Nutrition Programme

(SNP) in the impugned order/interim order dated 19.12.2018 is directed

to be continued till 31.12.2021. The State of Manipur is directed to

submit a compliance report before this Court. Any lapse on the part of

the State and/or its departments and non-compliance of the present

order shall be viewed very seriously.

7. With the aforesaid directions, the present appeal stands disposed

of. Pending applications, if any, also stand disposed of.

………………………………….J. [M.R. SHAH]

NEW DELHI; …………………………………..J.
NOVEMBER 12, 2021. [A.S. BOPANNA]

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