M/S B. K. ENTERPRISES versus THE STATE OF MANIPUR on 12 November 2021

1. Feeling aggrieved and dissatisfied with the impugned judgmentand order passed by the High Court of Manipur at Imphal dated 04.11.2020in Writ Appeal No. 28/2018, by which the Division Bench of the HighCourt has disposed of the said writ appeal with the following directions,

a) The State Government and in particular, the Social WelfareDDepartment shall take up immediate steps and issue fresh NITfor transportation of food grains and Micronutrients under theWBNP within a period of 10(ten) days from the date of receipt ofa copy of this judgment and order;

b) The whole tender process including the issuance of work orderEshould be completed within 20 (twenty) days from the date ofissue of fresh NIT; and c) Till the completion of the tender process and issuance of thework orders, the present arrangement for transportation of foodgrains under the WBNP pursuant to the interim order of this CourtFdated 19.2.2018 shall continue M/s B.K. Enterprises has preferred the present appeal.

2. We have heard Shri Siddhartha Dave, learned Senior Advocateappearing on behalf of the appellant and Shri Pukhrambam RameshKumar, learned Advocate appearing for the respondents.

G

2.1 At the outset, it is required to be noted that this is a glaringexample of lethargy on the part of the State Government in not invitingthe fresh tenders for transporting Rice & other micronutrients under theWheat Based Nutrition Programme (WBNP), from Food Corporationof India’s depots in the State of Manipur, to the offices of Child H

Development Project Officers and to continue the contract without invitingfresh tenders on the basis of the Notice Inviting Tender (NIT) issued on22.06.2017 causing huge loss to the State and the Public Exchequer.

3. That the State of Manipur through the Director of SocialWelfare Department, Government of Manipur issued a NIT on 22.06.2017for transporting Rice & other micronutrients under the Wheat BasedNutrition Programme (WBNP), from Food Corporation of India’s depotsin the State of Manipur, to the offices of Child Development ProjectOfficers. That the State’s Higher Tender Committee in its meeting dated16.12.2017, 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 conductedfor the other routes. That respondent no. 2 awarded contracts for all theroutes to one RK & Co. by way of interim arrangement till the finalizationof the re-tender process. That the appellant herein filed a writ petitionbefore the High Court being Writ Petition (Civil) No. 63/2018 seekingaward of tender with respect to route nos. 1, 3, 5 & 9 alleging inter aliathat being the lowest bidder as per Higher Tender Committee’s bandrate, 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 30.04.2018cancelled the Higher Tender Committee’s proceedings andrecommendations dated 16.12.2017.

3.1 That the High Court vide order dated 20.06.2018 disposed ofthe aforesaid writ petition with the directions to the respondents toconstitute a High Power Committee to proceed with the tender processafresh from the stage where and after the technical and financial bidsopened by the State/Director, Social Welfare Department and it shouldbe completed on or before 21.07.2018.

3.2 The appellant herein filed Writ Appeal No. 28/2018 before theDivision Bench of the High Court. Vide interim order dated 19.12.2018,the Division Bench of the High Court directed for equal distribution ofthe available WBNP rice amongst three contractors, namely, RK &Co., BLL Enterprises and BLL Agency as a temporary arrangement ofall nine routes. The State entered into temporary distribution agreementswith the aforementioned bidders. By the impugned judgment and order,the High Court has disposed of writ appeal no. 28/2018, with the followingdirections:

AB

C

D

E

F

G

H

Aa) The State Government and in particular, the Social WelfareDepartment shall take up immediate steps and issue fresh NITfor transportation of food grains and Micronutrients under theWBNP within a period of 10 (ten) days from the date of receiptof a copy of this judgment and order; Bb) The whole tender process including the issuance of work ordershould be completed within 20 (twenty) days from the date ofissue of fresh NIT; and

c) Till the completion of the tender process and issuance of thework orders, the present arrangement for transportation of foodCgrains under the WBNP pursuant to the interim order of this Courtdated 19.2.2018 shall continue

4. From the aforesaid, it can be seen that since 2017-18 thecontract for transportation of the rice and other micronutrients under theWBNP to the offices of Child Development Project Officers has beenDcontinued solely on the basis of the interim arrangement and withoutinviting fresh tenders and without entering into any permanent contracts.To continue with the contracts for transportation of rice and othermicronutrients within the State without any fresh tenders and by way ofan interim arrangement only and at the rates which were prevailing inthe year 2017-18 has caused tremendous/huge loss to the State and theEPublic Exchequer. Even after the impugned order is passed by the HighCourt, which has been passed on 04.11.2020, by which the DivisionBench of the High Court has directed to take immediate steps and issuefresh NIT for transportation of food grains and micronutrients under theWBNP within a period of 10 days from the date of receipt of the judgmentFand order and has further directed that the whole tender process includingissuance of work orders should be completed within 20 days from thedate of fresh NIT, no steps have been taken till date and the contracthas been continued which was by way of an interim arrangement onlypursuant to interim order dated 19.12.2018, causing further loss to theState. The action on the part of the State Government and the SocialGWelfare Department of the State of Manipur is highly deprecated.Contracts cannot be continued without finalizing of the tender processand/or without issuing fresh tenders and/or without undertaking the freshtender process and by way of an interim arrangement only and that tooat the rates prevailing in the year 2017-18. It appears prima facie thatHeverybody is happy, namely, the officers of the State Government, more particularly the officers of the Social Welfare Department and theContractors and it appears that the State is not interested in issuing freshNIT.

5. Learned counsel appearing on behalf of the State of Manipurhas stated at the Bar that now the State/concerned department has takena decision for appointment of Transport Contractor under theSupplementary Nutrition Programme (SNP) and that the State/Department is ready to float the tender within 10 days. It is submittedthat the entire process is likely to take about two months as the openingof the financial bids and the verification of the technical bids will takesome time. Therefore, it is prayed to grant some reasonable time to theState/concerned Department for completing the tender process. It isstated that the State/Department undertakes to conduct fresh NIT in afair and transparent manner through e-Tender. It is submitted on behalfof the State that the State/Department has not been able to implementthe order passed by the Division Bench of the High Court dated 04.11.2020in Writ Appeal No. 28/2018 because of the administrative difficultiesand the State/Department tenders its unconditional apology for the same.The aforesaid is a vague explanation which is not accepted. It is veryunfortunate that the contract for supply/transportation of rice and othermicronutrients under the Development Scheme has been continued byway of an interim arrangement only and without issuing any fresh tendersand the contract has been continued at the old rates of 2017-18, whichmust have caused tremendous/huge loss to the State and the PublicExchequer. There is a total lethargic and negligence on the part of theState and its departments in not issuing the fresh tender process and innot issuing fresh NIT after 2018.

6. In view of the above, we dispose of the present appeal bydirecting the respondents – State of Manipur and the concernedDepartment including respondent no.2 to issue fresh NIT for appointmentof transport contractor under Supplementary Nutrition Programme (SNP),within a period of 10 (ten) days from today and it is directed that thefresh NIT is conducted in a fair and transparent manner throughe-Tender and invitation of the fresh NIT shall be nation-wide and it isthe duty of the State/concerned Department to see that there is no cartelby the contractors and that the maximum price is received and there isno loss to the Public Exchequer and the State. The entire tender processbe completed within a period of six weeks from the date of issuance of AB

C

D

E

F

G

H

Athe e-Tender. In the peculiar facts and circumstances of the case andonly with a view to see that there is no inconvenience caused to thebeneficiaries, the directions issued by the High Court relating totransportation of goods under Supplementary Nutrition Programme (SNP)in the impugned order/interim order dated 19.12.2018 is directed to becontinued till 31.12.2021. The State of Manipur is directed to submit aBcompliance report before this Court. Any lapse on the part of the Stateand/or its departments and non-compliance of the present order shall beviewed very seriously.

7. With the aforesaid directions, the present appeal stands disposedof. Pending applications, if any, also stand disposed of.

C

Nidhi Jain

Appeal disposed of.

D

E

F

G

H