Manipur High Court
N.E. Logistic (Sole Proprietorship ... vs State Of Manipur on 7 December, 2022
Author: Sanjay Kumar
Bench: Sanjay Kumar
KABORA Digitally signed Item Nos. 4, 5 & 7
by
MBAM KABORAMBAM
SANDEEP SANDEEP SINGH
Date: 2022.12.08
SINGH 16:06:32 +05'30' IN THE HIGH COURT OF MANIPUR
AT IMPHAL
WP(C) No. 1043 of 2022
N.E. Logistic (Sole Proprietorship Firm),
through Sh. Ramesh Kumar Baid,
S/o Late Sh. Nem Chand Baid
(Power of Attorney Holder of Sole Proprietor,
namely Smt. Sheetal Baid).
Regd. Office: House No. 11, B.R. Phukan Road, Kumarpara
Panchali, Near Shanti Plaza, Guwahati - 781009, Assam.
...Petitioner
- Versus -
1. State of Manipur, through Chief Secretary, Old Secretariat,
Babupara, Imphal, Manipur - 795001.
2. The Principal Secretary/Commissioner, Social Welfare,
Government of Manipur, Imphal - 795001.
3. The Director, Social Welfare, Government of Manipur, Imphal
- 795001.
...Official Respondents
4. M/s. Jai Hanuman,
through Sole Proprietor, Sh. Lovrembam Nilkamal Singh,
Office at: 5, Yaiskul, Sougaijam Leirak, Imphal West,
Manipur - 795001.
5. M/s. Soraisam Enterprises,
through Sole Proprietor, Sh. Soraisam Gobin Singh, Office
at: 90, Heirangoithong Ningthemcha Karong, Imphal West,
Manipur - 795008.
6. M/s. Transking Carrier Pvt. Ltd.,
through its Proprietor, Office at: First Floor, Ward No. 25,
Hotel White Palace, Thangal Bazar, Imphal West,
Manipur - 795001.
7. M/s. Radhika Express Service,
through Sole Prop., Sh. Pawan Kumar Agarwala, Office at:
Hpb Road, Paltan Bazar, Guwahati - 781008.
8. New Up Bihar Orissa Road Lines,
through Proprietor, Shri Charan Singh, Office at: Vishnooli,
Dadri, Gautam Budh Nagar, Uttar Pradesh - 203207.
... Private Respondents
WP(C) No. 1043 of 2022 & 2 Ors. Page 1 of 8
WITH
WP(C) No. 1048 of 2022
M/s. Radhika Express Service, through its authorized signatory,
Langpoklakpam Budha Singh, aged about 51 years, S/o (L)
L. Birahari Singh of Keishampat Keisham Leikai, P.O. & P.S.
Imphal, Imphal West District, Manipur.
...Petitioner
- Versus -
1. The State of Manipur, through the Chief Secretary,
Government of Manipur/Chairman, Higher Tender
Committee for appointment of Contract Transporters for
transportation of WBNP (Rice) and Micronutrients Fortified
Dense Food in Social Welfare Department, Secretariat,
Babupara, Imphal, Manipur - 795001.
2. The Additional Chief Secretary, (Social Welfare),
Government of Manipur, Secretariat, Babupara,
Imphal - 795001.
3. The Director of Social Welfare, Government of Manipur,
Secretariat, Babupara, Imphal - 795001.
4. M/s. Transking Carrier Pvt. Ltd., 1st Floor, Ward No. 25, Hotel
White Palace, Thangal Bazar, Imphal West, Manipur,
through its Director, Mukesh Kumar Sharma.
... Respondents
WITH
WP(C) No. 1065 of 2022
M/s. Radhika Express Service, through its authorized signatory,
Langpoklakpam Budha Singh, aged about 51 years, S/o (L)
L. Birahari Singh of Keishampat Keisham Leikai, P.O. & P.S.
Imphal, Imphal West District, Manipur.
...Petitioner
- Versus -
1. The State of Manipur, through the Chief Secretary,
Government of Manipur, Old Secretariat, Babupara,
Imphal - 795001/Chairman, Higher Tender Committee for
appointment of Contract Transporters for transportation of
WBNP (Rice) and Micronutrients Fortified Dense Food in
Social Welfare Department.
WP(C) No. 1043 of 2022 & 2 Ors. Page 2 of 8
2. The Additional Chief Secretary, (Social Welfare),
Government of Manipur, Old Secretariat, Babupara,
Imphal - 795001.
3. The Director of Social Welfare, Government of Manipur,
North AOC, 2nd M.R. Gate, Imphal East - 795001.
4. M/s. Transking Carrier Pvt. Ltd., 1st Floor, Ward No. 25, Hotel
White Palace, Thangal Bazar, Imphal West, Manipur.
... Respondents
B EF O R E
HON'BLE THE CHIEF JUSTICE MR. SANJAY KUMAR
For the petitioners : Mr. H.S. Paonam, Sr. Advocate;
Mr. S. Biswajit Meitei, Advocate;
Mr. A. Golly, Advocate
For the respondents : Mr. S. Nepolean, GA
Mr. N. Umakanta, Advocate
Date of order : 07-12-2022
ORDER
[1] Appointment of contractors for transporting rice and micronutrient fortified food from the depots of the Food Corporation of India located in the State of Manipur to various District Social Welfare Offices, etc., seems to have occasioned issuance of tenders by the State authorities time and again. The first such Notice Inviting Tender (NIT) was issued on 22-06-2017 followed by a second NIT on 15-11-2021, a third NIT on 01-04-2022 and finally, the last NIT on 02-09-2022. This was because the tender process got mired in litigation from the very start and the matter went up to the Supreme Court in Civil Appeal No. 6532 of 2021, in connection with the first NIT dated 22-06-2017 itself. This appeal was filed against the order dated 04-11-2020 passed by a Division Bench of this Court in Writ Appeal No. 28 of 2018. By order dated 12-11-2021, the Supreme Court disposed of the said appeal, WP(C) No. 1043 of 2022 & 2 Ors. Page 3 of 8 directing the State of Manipur to issue a fresh NIT through nationwide e-Tender within ten days and to ensure that the tender process was conducted in a fair and transparent manner so as to complete the exercise within six weeks from the date of issuance of the e-Tender. The State of Manipur was also directed to submit a compliance report. [2] Pursuant thereto, the second NIT dated 15-11-2021 was issued but the same could not be finalized as only one bidder responded thereto. Miscellaneous Application No. 428 of 2022 then came to be filed before the Supreme Court in the disposed of Civil Appeal No. 6532 of 2021. Order dated 30-03-2022 was passed therein permitting the State of Manipur to initiate a fresh tender process and complete the same within a period of seven weeks from that day and submit a report to the Supreme Court. The third NIT dated 01.04.2022 was then issued but it also did not yield any result.
[3] Significantly, N.E. Logistic, Guwahati, the petitioner in WP(C) No. 1043 of 2022, was one of the bidders which submitted its bids in response to this NIT dated 01.04.2022. However, letter dated 08-08-2022 was addressed to it by the Deputy Secretary, Social Welfare, Government of Manipur, stating that the rates quoted by it for three routes, being ₹. 3.90 per MT per KM, were unreasonably low. Reference was made to the Higher Tender Committee's proceedings dated 16-12-2017, in the context of the first NIT dated 22.06.2017, wherein it was decided that rates ranging from ₹. 4.10 per MT per KM to ₹. 5.11 per MT per KM were unrealistically low. N.E. Logistic, Guwahati, was warned that it was trying to sabotage the NIT process by quoting unreasonably low rates for transportation and to refrain WP(C) No. 1043 of 2022 & 2 Ors. Page 4 of 8 from such acts in future or else the Department would be constrained to take serious action against it, including blacklisting it from all future tenders. [4] Thereafter, by order dated 29.08.2022 passed in Miscellaneous Application Number 945 of 2022 in Civil Appeal No. 6532 of 2021, the Supreme Court again permitted the State of Manipur to initiate a fresh tender process and to complete the same within 45 days. The last NIT dated 02-09-2022 was accordingly issued. Out of the fourteen bidders who submitted their bids, seven were disqualified and the remaining eligible bids were considered by a duly constituted Higher Tender Committee on 23.11.2022. Pursuant thereto, M/s. Transking Carrier Private Limited, Manipur, was awarded the transportation contracts for fifteen out of the total sixteen available routes, under the letter dated 01-12-2022 addressed to it by the Joint Director (ICDS), Department of Social Welfare, Government of Manipur. This Court is informed that a deed of agreement has also been entered into with the concern by the Director of Social Welfare, Government of Manipur, on the very same day.
[5] N.E. Logistic, Guwahati, filed WP(C) No. 1043 of 2022 assailing the tender process pursuant to the NIT dated 02-09-2022. At this stage, it may also be noted that N.E. Logistic, Guwahati, filed WP(Civil) No. 969 of 2022 before the Supreme Court in connection with the alleged entertainment of ineligible bids by the State of Manipur in response to the NIT dated 02-09-2022. However, it chose to withdraw the said writ petition thereafter with liberty. Order dated 25-11-2022 passed therein by the Supreme Court reflects that, as a decision had been taken by the State to award the contract to L1, the learned counsel appearing for N.E. Logistic sought permission to WP(C) No. 1043 of 2022 & 2 Ors. Page 5 of 8 withdraw the writ petition with liberty to file appropriate proceedings before the High Court. The writ petition was accordingly dismissed as withdrawn with the above liberty.
[6] WP(C) No. 1048 of 2022 and WP(C) No. 1065 of 2022 were filed by M/s. Radhika Express Service, Manipur, one of the other unsuccessful bidders. In WP(C) No. 1048 of 2022, its prayer is to set aside the proceedings dated 23-11-2022 of the Higher Tender Committee in relation to award of the transport contracts pursuant to the NIT dated 02-09-2022 and to award the contracts in respect of certain routes to it, as the second lowest bidder. By way of WP(C) No. 1065 of 2022, it assailed the award of transport contracts to M/s. Transking Carrier Private Limited, Manipur, under the letter dated 01-12-2022.
[7] Heard Mr. H.S. Paonam, learned senior counsel, assisted by Mr. A. Golly, learned counsel, appearing for M/s. Radhika Express Service, Manipur; Mr. S. Biswajit Meitei, learned counsel for N.E. Logistic, Guwahati; Mr. S. Nepolean, learned Government Advocate, appearing for the State of Manipur; and Mr. N. Umakanta, learned counsel, appearing on caveat for M/s. Transking Carrier Private Limited, Manipur.
[8] One of the main grounds urged before this Court is that the State of Manipur ought not to have accepted unreasonably low bids in response to the NIT dated 02-09-2022, having already committed itself in that regard by addressing letter dated 08-08-2022 to N.E. Logistic, Guwahati, that it was liable to be blacklisted from future tenders for quoting unreasonably low rates. Perusal of the proceedings dated 23-11-2022 of the Higher Tender Committee, constituted to examine the bids submitted in response to the WP(C) No. 1043 of 2022 & 2 Ors. Page 6 of 8 NIT dated 02-09-2022, reflects that the said Committee was well aware of the earlier proceedings dated 16-12-2017 of the Higher Tender Committee in the context of the NIT dated 22-06-2017 and that it had opined that the lowest rates between ₹. 4.10 and ₹. 5.11 per MT per KM were unrealistically low. However, the Committee thereafter proceeded to accept the bids submitted by M/s. Transking Carrier Private Limited for fifteen out of the sixteen routes, though the rates quoted by it ranged from ₹. 4.24 to ₹. 5.96 per MT per KM. The proceedings do not reflect any reasoning by the Committee as to why these rates were no longer considered unreasonably or unrealistically low. This aspect therefore presents a debatable issue which would require examination. All the more so, as N.E. Logistic, Guwahati, was forcibly restrained from quoting such rates under threat of being blacklisted, under the letter dated 08-08-2022 addressed to it by the Deputy Secretary, Social Welfare, Government of Manipur. Further, Mr. H.S. Paonam, learned senior counsel, would contend that the deliberations of the Committee are also faulty on technical grounds. [9] While so, it may be noted that the final order dated 12-11-2021 passed by the Supreme Court in Civil Appeal No. 6532 of 2021 required the State of Manipur to submit a compliance report before it. Thereafter, the order dated 30-03-2022 passed in Miscellaneous Application No. 428 of 2022 in Civil Appeal No. 6532 of 2021 also required the State to initiate a fresh tender process and submit a report to the Supreme Court. Earlier, when the NIT dated 15-11-2021 was issued by the State of Manipur, it appears that a writ petition was filed before this Court and stay of further proceedings was ordered therein. When the same was brought to the notice WP(C) No. 1043 of 2022 & 2 Ors. Page 7 of 8 of the Supreme Court, order dated 07-03-2022 was passed by the Supreme Court in Miscellaneous Application 428 of 2022, recording that the High Court ought not to have granted the stay and ought to have relegated the aggrieved person to approach the Supreme Court. That being so and as it is now stated by Mr. S. Nepolean, learned Government Advocate, that a compliance report is going to be filed by the State of Manipur before the Supreme Court as directed, it would be appropriate that the petitioners in the present cases also ventilate their grievances before the Supreme Court at that stage. Though liberty was given by the Supreme Court to N.E. Logistic, Guwahati, to approach this Court, while dismissing WP(Civil) No. 969 of 2022, this Court is mindful of the fact that the compliance report is yet to be submitted before the Supreme Court by the State of Manipur and the validity of such compliance may then be examined by the Supreme Court itself. At that stage, the petitioners would be in a position to put forth their respective stands.
In that view of the matter, these writ petitions are disposed of, leaving it open to the petitioners to adopt this course of action, if so advised.
In the circumstances, there shall be no order as to costs.
CHIEF JUSTICE Victoria WP(C) No. 1043 of 2022 & 2 Ors. Page 8 of 8