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Showing contexts for: ommc rules in Narayan Chandra Udgata vs State Of Orissa & Others .... Opp. ... on 6 October, 2020Matching Fragments
2. According to the case set up by the petitioner in the writ petition, the Tahasildar, Bonth-O.P. No.4 on 04.06.2020 issued a tender call notice inviting bids from the interested parties for auction of the sairat sources including Sahupada Sand Sairat source for a period of five years (2020-21 to 2024-25). In paragraph 4 of the said Auction Notice (DTCN), it was mentioned that the applicants are required to submit the Solvency Certificate or Bank Guarantee equivalent to the amount mentioned in the application form as additional charge/royalty. The last date of submission of the bid was 30.06.2020 and the date of opening the bid was on 01.07.2020. It was also stipulated in the DTCN that the bid shall be finalized in presence of the parties and incomplete application shall be rejected. Pursuant to the said tender call notice, the petitioner submitted his bid for Sahupada lease Sairat Source enclosing therewith the Solvency Certificate duly attested by the Sub-Collector, Bhadrak, IT returns and all other required documents as per the DTCN as well as Orissa Minor Mineral Concessions (OMMC) Rules, 2016. On opening of the bid on 1.7.2020, the petitioner was found to be the highest bidder as his offer was Rs.250/- per Cum for Sahupada Sand Sairat. However, the Tahasildar, Bonth issued sent a letter dated 1.7.2020 (Annexure-5) to the Sub-Collector, Bhadrak seeking clarification with regard to issue of Solvency Certificate stating therein that as per Clause-6 of the order dated 02.01.2020 issued by the Government of Odisha, R&DM Department, Solvency Certificate has been decided to be phased out for grant of licence in quarry lease and the tenderers are required to submit IT returns along with Bank Guarantee for the said purpose. However, Shri Narayan Chandra Udgata (petitioner herein), who was found to be the highest bidder quoting Rs.250/- per Cum for Sahupada Sand Quarry, submitted Solvency Certificate issued by the Addl. Tahasildar, Bonth after being duly approved by the Sub-Collector, Bhadrak, whereas Shri Amrit Sundar Nayak (O.P. No.5 herein) was found to be the 2nd highest bidder having quoted Rs.224.5/- per Cum, but he has submitted Bank Guarantee. Therefore, the Tahasildar, Bonth requested the Sub-Collector, Bhadrak to clarify whether Sri Narayan Chandra Udgata is eligible to get the quarry or not. While giving the clarification to the said query vide letter dated 02.07.2020 (Annexure-6), the Sub-Collector, Bhadrak, on the one hand, expressed concern as to how the Tahasildar, Bonth issued the said DTCN mentioning to submit Solvency Certificate in Clause-4 thereof for long term lease in respect of minor minerals, violating Government orders/instructions, but on the other hand, he stated that when the bidder fulfills all terms and conditions of the DTCN issued by the Tahasildar, there should not be any doubt regarding eligibility of bidders. Accordingly, the Sub-Collector requested the Tahasildar, Bonth to take appropriate steps for long term lease in respect of minor minerals sairat source of Sahupada sand quarry as per the procedure laid down under OMMC Rules, 2016. In spite of this, the Tahasildar, Bonth on 04.07.2020 declared the opposite party No.5, who was the second highest bidder, as the successful bidder in respect of Sahupada Sand Quarry, without giving any opportunity of hearing to the petitioner though he was the highest bidder and was fulfilling all the terms and conditions of the DTCN. On 09.07.2020, the petitioner submitted representations before the Collector, Bhadrak as well as Sub-Collector, Bhadrak ventilating his grievance regarding gross irregularities in the selection of the successful bidder in respect of the said sand quarry, but no action has been taken thereon till date. Hence this writ petition.
5. We have given our thoughtful consideration to the rival submissions and examined the material on record.
6. In order to appreciate the issue involved, we deem it appropriate to first go through the relevant Rules i.e. Rule 27(4) of the OMMC Rules, 2016 for the purpose of deciding the present writ petition, which reads as under:
"27. Grant of Quarry Lease: .........
xxx xxx xxx (4) Subject to other provisions of these rules for settlement of quarry lease, the intending applicant may apply to the Competent Authority in a sealed cover for grant of quarry lease for such area or areas in Form-M in triplicate accompanied by the following documents and particulars, namely:--
From the above clause it is also clear that FORM-M, which is the application format appended to the OMMC Rules, corresponding to Rule 27(4)
(iv) of the OMMC Rules, also stipulates submission of Solvency Certificate issued by the Revenue Authority and is one of the requirement for the purpose of submission of application.
8. Perusal of Rule 27(4) (iv) makes it clear that an option has been given to the intending applicants to either submit solvency certificate or bank guarantee. Therefore, if he submits solvency certificate, the competent authority cannot decline to accept the same for entertaining his application. This was even clarified in these terms by Government of Odisha in its Department of Revenue and Disaster Management vide letter dated 30.07.2020 referring to order of this court dated 19.03.2020 passed in W.P.(C) No. 9726 of 2020 (Sarat Pradhan vs. State of Odisha) in the terms that the bid of the highest bidder supported by solvency certificate cannot be invalidated merely on the ground of non-submission of bank guarantee since OMMC Rules, 2016 provides for either solvency certificate or bank guarantee. The said clarification letter dated 30.07.2020 of the R&DM Department is reproduced hereunder:
"GOVERNMENT OF ODISHA REVENUE AND DISASTER MANAGEMENT DEPARTMENT RDM-MMS-CLRFIC-006-2020-23726 /R&DM Dated 30 JULY 2020 From:
Sri Bhaktiprasad Mohanty, Deputy Secretary to Government.-9-
To Collector, Khordha.
Sub: Clarification on acceptance of Solvency Certificate for finalization of bidder in respect of Kalayanpur-A Sand Sairat Source of Bhubaneswar Tahasil. Ref: Your letter No. 7236 dt. 30.04.2020. Sir, In inviting a reference to your letter on the subject noted above I am directed to say that keeping in view the order of the Hon'ble High Court in similar case i.e. W.P.(C) No. 9726 of 2020 filed by Sarat Pradhan Vs. State & Others and after obtaining the view of the Law Department in the matter, it is clarified that the bid of the highest bidder supported by Solvency Certificate cannot be invalidated merely on the ground of non-submission of Bank guarantee since OMMC Rules 2016 provides for submission of Solvency Certificate or Bank Guarantee. Solvency Certificate may be accepted as alternative to Bank Guarantee in finalization of bids for lease of minor mineral sources till OMMC Rules, 2016 is amended.