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Patna High Court - Orders

M/S Gunja Kumari, vs The Metal Scrap Trade Corporation ... on 8 June, 2023

Author: Rajeev Ranjan Prasad

Bench: Rajeev Ranjan Prasad

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.8189 of 2023
                 ======================================================
                 M/S Gunja Kumari, Through its proprietor Smt. Gunja Kumari, female, aged
                 about 39 years, wife of Shri Mukesh Kumar, Khata No. 67, Kheshra No. 1708
                 and 1719, Sherpur, Muzaffarpur, District - Muzaffarpur, PIN - 842002.
                                                                               ... ... Petitioner
                                                    Versus
           1.     The Metal Scrap Trade Corporation Limited Through its Chief Managing
                  Director, Plot no.CF-18/2, Street No.175, Action Area IC, New Town,
                  Kolkata - 700156.
           2.    The Additional General Manager, E-Commerce, Metal Scrap Trade
                 Corporation Limited, Plot no.CF-18/2, Street No.175, Action Area IC, New
                 Town, Kolkata - 700156.
           3.    The Manager, Metal Scrap Trade Corporation Limited, Plot no.CF-18/2,
                 Street No.175, Action Area IC, New Town, Kolkata - 700156.
           4.    The Additional General Manager, Metal Scrap Trade Corporation Limited,
                 Patna Branch Office, 3rd Floor, DCM cum MRT Building SBPDCL, Road
                 No-01,D P Rai Path, Near R Block, Patna, Bihar, PIN-800001
           5.    The Deputy Manager, Patna Branch Office, Metal Scrap Trade Corporation
                 Limited, 3rd Floor, DCM cum MRT Building SBPDCL, Road No-01,D P
                 Rai Path, Near R Block, Patna, Bihar, PIN-800001.
           6.    The North Bihar Power Distribution Company Ltd. Through its Managing
                 Director, Third Floor, Vidyut Bhawan, Bailey Road, Patna 800001.
           7.    The Chief Engineer (S and P), North Bihar Power Distribution Company
                 Ltd., Vidyut Bhawan, Bailey Road, Patna 800001.
           8.     The Sr Manager F and A, North Bihar Power Distribution Company Ltd.,
                  Vidyut Bhawan, Bailey Road, Patna 800001.
                                                                      ... ... Respondents
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :       Mr. Navendu Kumar, Advocate
                 For the Respondent/s   :       Mr. Vinay Kirti Singh, Sr. Advocate
                                                Mr. Vijay Kumar Verma, Advocate
                 For the NBPDCL         :       Mr. Akhileshwar Singh, Advocate
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE RAJEEV RANJAN PRASAD
                                       ORAL ORDER

3   08-06-2023

Heard learned counsel for the petitioner and learned Senior Counsel for the North Bihar Power Distribution Company Limited (hereinafter referred to as the 'NBPDCL') (Respondent Nos. 6 to 8).

Mr. Ajay Kumar, the Chief Engineer (Store and Patna High Court CWJC No.8189 of 2023(3) dt.08-06-2023 2/5 Purchase), NBPDCL and Mr. I.C. Yadav, the former Chief Engineer (Store and Purchase), NBPDCL are present in person.

The records have been placed before this Court. Learned Senior Counsel for the NBPDCL submits that so far as the NBPDCL is concerned, it has not blacklisted the petitioner. Reference has, however, been made to Letter No. 738/S&P, Patna dated 04.07.2019 written by the Chief Engineer (S&P), NBPDCL, Patna to the Regional Manager, M/S Metal Scrap Trade Corporation Limited (in short 'MSTC') wherein a direction was issued to take stern action and blacklisting the three firms including that of the petitioner for a period of three years from participating in the e-auction under an intimation to him within three days. Vide this letter, the earlier Auction No. MSTC/ERO/North Bihar Power Distribution Company Ltd./3/Patna/19-20/8646 [215460] dated 08.07.2019 and MSTC/ERO/North Bihar Power Distribution Company Ltd./4/Patna/19-20/8647 [215461] were placed under suspension.

The then Chief Engineer, S&P has made a statement before this Court that he had not blacklisted the petitioner as he was not empowered to do so. In his submission, it is the MSTC who was empowered to blacklist the defaulters who in earlier Patna High Court CWJC No.8189 of 2023(3) dt.08-06-2023 3/5 cases failed to deposit the value of the scrap materials.

In any case, it is admitted that the period of three years had already expired in the month of July 2022, thus, by his own admission, it is his stand that the MSTC was not justified in not allowing the petitioner to participate in the bidding process.

On going through the Letter No. 738 dated 04.07.2019, copy of which has been placed before this Court, it prima facie appears that the then Chief Engineer, S&P had issued a direction to MSTC to blacklist the firm for three years. It is difficult to understand as to how at this stage, he can take a plea that he had no power to do so and had not issued any such order.

This Court finds that there is a change of stand on the part of the then Chief Engineer, S&P, NBPDCL. His letter is not only by way of a direction, rather in a very emphatic term he imposed a punishment of blacklisting for three years.

He would be required to satisfy this Court as to how he could have issued such directions if he had no power to pass an order of blacklisting that too when admittedly no notice to show-cause was issued to the petitioner prior to issuance of Letter No. 738 dated 04.07.2019.

Let a counter affidavit on behalf of the NBPDCL and Patna High Court CWJC No.8189 of 2023(3) dt.08-06-2023 4/5 the Chief Engineer, S&P (Respondent Nos. 6 and 7) be filed specifically answering these issues.

Issue notice to Respondent Nos. 1 to 5 through both by ordinary process as well as under registered cover with A/D for which requisites etc. must be filed by Monday i.e. 12 th June, 2023, failing which this application as against concerned respondents shall stand dismissed without further reference to a Bench.

Office shall issue notice immediately thereafter. This Court has been informed that out of eight Lots which were subject matter of the biding process, bidding could take place only in respect of four Lots and four parties have been declared successful.

Let the name of those four parties be disclosed in the counter affidavit with complete address whereupon the petitioner shall take appropriate steps to add them party respondents to the writ application.

This Court has been further informed that the allottee of Lot No. 1 has yet not deposited any money, therefore, no delivery order has been issued in her favour. So far as Lot Nos. 3, 5 and 6 are concerned, the allottees have made certain payments against which they have been issued delivery orders Patna High Court CWJC No.8189 of 2023(3) dt.08-06-2023 5/5 and they are lifting the materials.

Considering that the petitioner has been able to make out a prima facie case for consideration that she has been unlawfully and illegally debarred from participating in the tender process, while directing the respondents to file counter affidavit, this Court directs by way of an interim measure that till next hearing of the matter, no further delivery order shall be issued, however, the delivery orders already issued with respect to Lot Nos. 3, 5 and 6, copies of which have been placed before this Court are not being interfered with.

List this matter after service of notice on Respondent Nos. 1 to 5 or on 10th July, 2023, whichever is earlier within top 10 cases.

Personal appearance of the Chief Engineer, S&P, NBPDCL and the then Chief Engineer, S&P, NBPDCL stands dispensed with.

(Rajeev Ranjan Prasad, J) vikashkr/-lekhi/-

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