Madhya Pradesh High Court
Gautam Agro Industries Galla Mandi Gate ... vs The State Of Madhya Pradesh on 25 May, 2018
1
THE HIGH COURT OF MADHYA PRADESH
W.P. No.10925/2018
(Gautam Agro Industries Galla Mandi Gate, Vidisha
vs. State of M.P. & Ors.)
Gwalior, Dated : 25.05.2018
Shri Tapendra Sharma, Counsel for the petitioner.
Smt. Nidhi Patankar, Government Advocate for the
respondents/State.
Heard on I.A.No.2574/2018. This is an application for hearing during summer vacation.
For the reasons mentioned in the application, the same is allowed.
This petition under Article 226 of the Constitution of India has been filed challenging the order dated 22.3.2018 passed by District Project Officer, Vidisha (respondent No.5) by which he has partially terminated the tender.
This Court by order dated 17.5.2018 had directed the petitioner to file the agreement for the rate contract of the water tanker.
Accordingly, I.A.No.2576/2018 has been filed for taking the additional document on record.
In this application it is specifically mentioned that except the Rate annexure (Annexure A/1) no separate agreement was executed between the parties.
Rate annexure (Annexure A/1) reads as under:-
"Madhya Pradesh Laghu Udyog Nigam Limited (M.P. Government undertaking) First Floor, Panchanan Bhawan, Malviya Nagar Bhopal No.LUN/MKT/PS-19/17-18/5078 Bhopal dated 25.10.17.
M/s Gautam Agro Industries 2 THE HIGH COURT OF MADHYA PRADESH W.P. No.10925/2018 (Gautam Agro Industries Galla Mandi Gate, Vidisha vs. State of M.P. & Ors.) Galla Mandi Gate Vidisha- M.P. Sub: Execution of agreement for the Rate Contract of Water Tanker mounted on 2 wheel Trolley. Ref: Tender No.KE 17011-S. Dear Sir, We have the pleasure to inform you that in respect of the tender referred above, the rates, terms and condition etc for Water Tanker mounted on 2 wheel Trolley have been finalized and the same are being offered to you. You are requested to execute the agreement latest by 01.11.2017 (01.11.2017).
For executing the agreement, please bring the following documents (Photocopy or attested copies along with original copies):-
1. Blank non-judicial stamp paper worth Rs.500/-
(Rupees five hundred only) along with you to facilitate speedy execution of agreement.
2. Unit shall submit self certified copy of Feasibility report.
3. Annual turnover certificate of last three financial years certified by C.A.
4. Copy of Notorised Power of attorney worth Rs.1000/- only, if you are authorised signatory.
Thanking you, Yours faithfully, For M.P. Laghu Udyog Nigam Ltd., Manager (MKT)"
3THE HIGH COURT OF MADHYA PRADESH W.P. No.10925/2018 (Gautam Agro Industries Galla Mandi Gate, Vidisha vs. State of M.P. & Ors.) From the contents of this letter, it is clear that the rates, terms and conditions etc. for water tanker mounted on two wheel trolley were finalized and the same were offered to the petitioner. The petitioner was also requested to execute the agreement latest by 1.11.2017. It appears that thereafter no agreement was executed between the petitioner and Madhya Pradesh Laghu Udyog Nigam Limited.
It is submitted by the counsel for the petitioner that the petitioner started executing the work treating the order dated 25.10.2017 as an agreement.
The submissions made by the counsel for the petitioner cannot be accepted because it is specifically mentioned in the letter dated 25.10.2017 issued by Madhya Pradesh Laghu Udyog Nigam Limited that the rates have been finalized which are being offered to the petitioner. The letter dated 25.10.2017 issued by Madhya Pradesh Laghu Udyog Nigam Limited is nothing but merely an offer given to the petitioner and it was specifically mentioned in the said letter that the agreement is to be executed between the parties.
From the letter dated 25.10.2017, it is clear that the Madhya Pradesh Laghu Udyog Nigam Limited had merely offered the rates finalized by it and for making the contract binding between the parties, execution of an agreement by the petitioner was a condition precedent.
The Supreme Court in the case of Steel Authority of India Limited and others Vs. Salem Stainless Steel 4 THE HIGH COURT OF MADHYA PRADESH W.P. No.10925/2018 (Gautam Agro Industries Galla Mandi Gate, Vidisha vs. State of M.P. & Ors.) Suppliers and others reported in AIR 1994 SC 1414 has held that in order to constitute a contract, both the parties must consent to the agreement. In the present case, undisputedly inspite of the offer given by the Madhya Pradesh Laghu Udyog Nigam Limited, the petitioner never entered into an agreement, therefore, in absence of agreement, it cannot be said that there was a concluded contract between the Madhya Pradesh Laghu Udyog Nigam Limited and the petitioner. As the substantive right had not accrued in favour of the petitioner, therefore, the order dated 22.3.2018 cannot be said to be violative of any substantive right of the petitioner. If still the petitioner feels that he has suffered because of the permission given by the respondents to go ahead with the rate contract of water tanker without there being an agreement, then at the most it can be said that it is a civil wrong and the petitioner has an efficacious and alternative remedy of filing a civil suit.
Under these circumstances, this Court is of the considered opinion that the present petition filed by the petitioner is misconceived and is hereby dismissed.
(G.S. Ahluwalia)
(alok) Judge
Digitally signed by ALOK KUMAR
Date: 2018.05.26 10:30:12 +05'30'