Jammu & Kashmir High Court New Jammu Flour Mills Pvt. Ltd. vs Union Of India (Uoi) on 29 September, 2006 Equivalent citations: 2007(1)JKJ405, AIR 2007 (NOC) 703 (J. & K.) JUDGMENT J.P. Singh, J. Background facts 1. Food Corporation of India, Regional Office, Jammu, issued an Emergent Notice under No. Stg.32(3)/JK/Tender/0506/1793 dated 29.07.2006 inviting on the spot offers from financially sound parties having sound business competence and fulfilling eligibility requirements as per Model Tender Form (MTF) clauses for appointment of Road Transport Contractor on daytoday basis, to be opened on 01.08.2006 at 12.00 noon. Complete failure of State Road Transport Corporation to supply the required number of trucks to carry the food grains to various parts of the State, had necessitated the issuance of this Emergent Notice which, inter alia, provided that since acute scarcity conditions were prevailing in the entire State, the working of the successful Transport Contractor would be monitored for a period of ten (10) days and in the event of short supply of trucks, the work would be carried out at his cost till finalization of regular Tender Enquiry. The Food Corporation of India (hereinafter FCI for short) issued a Tender Notice for appointment of Regular Transport Contractors for transportation of food grains ExJammu to various centers mentioned in the tender notice under Two Bid System from financially sound parties possessing sound business competence and eligibility. This notice was published on 01.08.2006. One hundred and five (105) tender documents were purchased by different parties. Fifty eight (58) tender documents were received before the date fixed for the purpose. A committee of officers comprising fourth to eighth respondents examined the Technical Bids and prepared comparative statements showing details of documents attached with technical bids for determining the eligibility of tenderers, who had participated in the Tender Enquiry. M/S New Jammu Flour Mills Pvt. Ltd., Sarore, Jammu, the writ petitioner offered its Technical Bid for three centers viz. (i) Jammu to Baramulla; (ii) Jammu to Kupwara; and (iii) Jammu to Kishtwar; alongwith Rupees fifty lacs as earnest money. The petitioner appears to have been informed in terms of communication dated 01.09.2006 that the opening of the price bid had been fixed on 01.09.2006 at 2.30 p.m., at the Regional Office of the Food Corporation of India. The petitioner appears to have been conveyed that the price bids offered by the petitioner for three centers had not been opened. The petitioner thereafter filed OWP No. 611/2006 seeking a direction to the respondents to open the price bids offered by the petitioner for three centers. On coming up of this petition for consideration after notice, a communication is stated to have been produced by the respondents with a view to make the pending writ petition infructuous, says the petitioner. This communication No.Stg.32(3)/JK/Tender/06/376 dated 02.09.2006 emanates from premeditated exercise of the respondents to oust the petitioner from the competition to facilitate completion of tender enquiry in favour of a particular contractor. It is further stated by the petitioner that there were nine participants out of which four formed a cartel belonging to one Ch. Nagar Singh who, for the past some years, had been making continuous efforts to continue with the same contract. 2. The petitioner has questioned the Emergent Notice dated 29.07.2006, communication dated 02.09.2006 of the FCI, besides Clause (iii) of the Technical Bid document. Communication dated 02.09.2006 and Clause (iii) of the Technical Bid document are reproduced hereunder for facility of reference: Communication dated 02.09.2006 FOOD CORPORATION OF INDIA Ref. No. Stg.32(3)/JK/Tender/0506/376Dated: 02.09.2006. The Manager, M/S New Jammu Flour Mills (Pvt.) Ltd., Adda Sarore, Bari Brahmana, JAMMU. Sub: Request for written reason for rejection of Tender Sir, Reference your letter No. nil dated 02.09.2006 seeking reasons as to why the tenders submitted for stations of Baramulla, Kupwara have been rejected by FCI and as to why 3rd bid meant for Kishtwar station has not been opened. In this regard it is informed that Technical Bid Clause (iii) contemplates the condition concerning experience in respect of eligibility and for your reference the same is reproduced below: Enclose experience certificate for rake handling and transportation duly obtained from Manufacturer/Handling agency/Govt. Department/PSU/Public Ltd. Company dealing in fertilizers, food grains, cement or similar products during the preceding three years of which the value of single contract should not be less than 50% of the estimated value of present contract (for amount please refer press advertisement with respect to corresponding center) in any of those three years otherwise work experience