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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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