Bishnu Prasad Dash v. Raj Kumar Agarwal and Ors.

Case Details & Bench

Court: High Court
Hon'ble Judges: Arijit Pasayat
S. H. Kapadia
Judgment Date: 2006-05-01
Court Decision / Holding: The appeal is allowed. The High Court’s order is set aside and the matter is remitted to the High Court for fresh disposal, on the condition that IDCOL and the appellant (IDCOL’s agent) are impleaded as parties within three weeks. The High Court should dispose of the matter within four months from the receipt of the order, and shall consider the OSICL offer, if appropriate, after hearing all necessary parties. The Court clarified that it has not expressed any opinion on the merits of the case.
Final Disposition: Appeal disposed of; no costs; remanded to High Court for fresh disposal with necessary parties impleaded.

Parties to the Case

Appellants / Petitioners

Bishnu Prasad Dash

Respondents

Raj Kumar Agarwal and Others

Legal Representation & Advocates

Counsels for Petitioners

• Janaranjan Das
• Swetaketu Mishra

Counsels for Respondents

• Abhisth Kumar
• Raj Kumar Mehta

Case Synopsis & Summary

This matter concerns a writ petition challenging a Government disposal order for copper cables. The sequence begins with a tender where Orissa Small Industries Corporation Ltd. (OSICL), represented by Respondent No. 1, offered Rs. 80 per kg for lifting copper cables. Subsequently IDCOL, acting through its agent (the Appellant), offered Rs. 84 per kg. The Government then passed an order disposing of the copper cables at Rs. 84 per kg to IDCOL. OSICL fired a fresh bid of Rs. 85 per kg on 20.12.2004, but this offer was not considered as it was deemed belated in light of the prior Government decision. The Respondent challenged the order via a writ petition before the High Court of Orissa. The High Court set aside the Government order and directed that the OSICL bid of Rs. 85 per kg be considered at the highest level, i.e., by the Chief Minister, even though IDCOL’s bid had already been finalized. The Supreme Court, after noting that IDCOL and the appellant (IDCOL’s agent) were not impleaded in the writ petition, held that the High Court acted in haste and without hearing the interested party; it could not entertain the petition on such a flaw. The Court allowed the appeal and remitted the matter to the High Court for fresh disposal after impleading the necessary parties, clarifying that higher bids can be sought in public interest only after hearing all concerned parties."

Provisions of Law Cited

Constitution of India, 1950, Article 226

Legal Doctrines & Maxims

Audi alteram partem (principle of natural justice requiring hearing)
Higher public interest may justify seeking higher bids but only after hearing the concerned parties

Submissions & Arguments

Contentions of Appellants / Petitioners

Learned counsel for the appellant contended that the writ petition was disposed of in great haste, without issuing notice to IDCOL or impleading essential parties, yet the Government order had been finalized. Since IDCOL and the appellant (IDCOL’s agent) were not made parties, the High Court could not have entertained or decided the petition. A fresh disposal by the High Court is required after proper impleadment of necessary parties. The core issue is that the earlier order is contractual in nature and requires hearing of all interested parties before any alteration in bid terms is made.

Contentions of Respondents

Respondent’s counsel argued that in the larger public interest the High Court’s intervention is warranted to ensure fairness and that the Government’s decision to award to IDCOL should not be unsettled without hearing. They submitted that the writ petition challenges a contractual decision and the courts should respect executive decisions where public interest is at stake. They also pointed out that OSICL’s belated bid was not considered in light of prior approvals.

Extracted Judgment Text

Exact text extracted from official judgment records.

A ## BISHNU PRASAD DASH _v._ ## RAJ KUMAR AGAR WAL AND ORS. ## MAY I, 2006 ## B [ARJJIT PASA YAT AND S.H. KAPADIA, JJ.] _Constitution of India, 1950-Article 226-Writ PetitionMaintainability of, when party whose right affected not impleaded-Proposal_ C _for tender-Government Order declaring the Corporation offering higher bid as successful out of the two-Subsequently, fresh bid by OS/CL offering highest bid but not considered being belated-Writ Petition filed-Government Order set aside and IDCOL declared successful-Legality of-Held: High Court could not entertain writ petition because the successful bidder had not been impleaded-Courts can ask parties to offer higher amounts in greater_ D _public interest but only after hearing parties-Thus, order of High Court set aside and matter remitted back._ The proposal for tender was submitted for disposal of copper cables. Respondent no. I-agent of OSI CL offered a price of Rs. 80 per kg for lifting copper cables. Thereafter, appellant-agent of IDCOL made an offer of Rs. 84 E per kg. Government then passed an order for disposal of copper cable at the rate of Rs. 84 per kg to IDCOL. Thereafter, OSICL submitted a fresh offer at Rs. 85/- per kg. but the same was not considered since it was made belatedly. Government Order was challenged. High Court set aside the Government Order and directed that the offer of OSICL at Rs. 85/- per kg to be considered F by the Government at highest level. Hence the present appeal. ## Disposing of the appeal, the Court HELD: In the instant case, IDCOL and also the appellant who is the agent ofIDCOL was not made a party in the writ petition. The writ petition G was disposed after two days of its filing even without issuing notice to the parties, as such was disposed of in haste. High Court has interfered in contractual matter without hearing the party whose offer had been accepted. High Court should not have entertained the writ petition because the successful bidder had not been impleaded. Such a course is clearly impermissible. Since ## H 624 BISHNU PRASAD DASH _v._ RAJ KUMAR AGARWAL [PASAYAT, J.] 625 the High Court did not have the material facts before it, it did not notice that A the offer made by IDCOL through its agent had been finalized and final order had been passed. It is true that in greater public interest the courts can ask parties to offer higher amounts. But that can necessarily be done after hearing the parties concerned. Since that was not done in the instant case, the High Court's order cannot be maintained and is accordingly set aside and the matter is remitted to the High Court for fresh disposal only if necessary parties- B IDCOL and the present appellant are impleaded. [626-H; 627-A-Dl CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2402 of 2006. From the Order dated 20.1.2005 of the High Court of Orissa at Cuttack C in W.P.(C) No. 803/2005. Janaranjan Das and Swetaketu Mishra for the Appellant. Abhisth Kumar and Raj Kumar Mehta for the Respondent. The Judgment of the Court was delivered by ## ARIJIT PASA VAT, J. Leave granted. Appellant calls in question legality of the judgment rendered by a Division Bench of the Orissa High Court directing that the offer of Orissa Small Industries Corporation Ltd. (in short the 'OSICL') represented by its E agent (Respondent no. I) at Rs.85/- per kg. will be considered by the Government at the highest level, namely the Chief Minister of Orissa. It was further observed that it will be open for the Government to pass such orders as it deems fit in the larger public interest; keeping in view all aspects of the matter. It would also be open for the Government to call for revised offers from the F Industrial Development Corporation of Orissa Ltd. (in short the 'IDCOL'), OSICL or from any other party. Appellant represents IDCOL as its agent. ## Background facts in a nutshell are as follows: Respondent no. I has been lifting copper cables scrap from the OSICL G since 2002. For disposal of 16,625.09 kg. of copper cables pertaining to Main Dam Division, Burla, proposal for tender was submitted by the Chief Engineer, Mechanical and off set price was fixed at Rs.160/- per kg. The IDCOL did not respond to the said tender. The OSICL offered a price of Rs.80/- per kg. But no other party responded to the tender invited by the Executive Engineer. Thereafter, the IDCOL made an offer of Rs.84/- per kg. of copper cable H 626 SUPREME COURT REPORTS (2006] SUPP. I S.C.R. A excluding all taxes and duties. The matter was processed and finally orders were passed by the Government at the level of Chief Minister of Orissa for disposal of the copper cable at the rate of Rs.84/- per kg. to the IDCOL. After the aforesaid order was passed by the Chief Minister of Orissa on 16.12.2004, the OSICL submitted a fresh offer dated 20.12.2004 at Rs.85/- per kg. but the B said offer of the OSICL was not considered pursuant to the notes given in the Department that the offer was made belatedly after order was passed by the Government and if the said order is entertained, it will affect the sanctity of the Government order. Respondent no. I filed a writ petition challenging the Government order. ## c The High Court was of the view that the offer of IDCOL was Rs.84/per kg. where the offer of OSI CL, though belated, was Rs.85/- per kg. It was felt that the offer of OSI CL should have been considered at the rate of Rs.85/ - per kg. by the highest level of the Government, namely the Chief Minister. Accordingly the Government order was set aside and directions as noted supra were given. D Learned counsel for the appellant submitted that V>'ithout impleading the IDCOL as a party, the writ petition should not have been disposed of. Respondent no. I claimed to be an agent of OSICL. Appellant was the agent of!DCOL. Since IDCOL was not a party and the writ application was disposed of in a great haste, even without issuing notice relevant facts could not be E placed on record. In fact, the State Government in its counter, filed before this Court, has clearly indicated that by the time the respondent no. I made the offer, i.e. 20 days after the acceptance of offer by IDCOL acting through its agent i.e. appellant, a slightly higher amount was offered. No explanation was given by the respondent no. I as to why the higher offer was being made after p necessary decisions have been taken by the State Government. The letters from OSICL was received on 20.12.2004, whereas about a week before that, decision had been taken and orders were issued by Water Resources Department to IDCOL conveying the approval of the Government accepting its offer at Rs.84/- per kg. G In response, learned counsel for respondent no. I submitted that in greater public interest, the High Court has passed the order and this Court should not interfere. The order of the High Court is indefensible on more than one counts. Firstly, IDCOL was not a party in the writ petition. Similar was the position H _vis-a-vis_ the appellant who undisputedly is the agent of IDCOL. So far as the ## BISHNUPRASADDASHv. RAJKUMARAGARWAL[PASAYAT,J.] 627 question of disposal in haste is concerned, it is not disputed that the writ A petition was filed on 18.1.2005 and merely two days thereafter the matter was finally disposed of even without issuing notice to the parties. High Court has interfered in a contractual matter without hearing the party whose offer had been accepted. High Court should not entertain the writ petition because the successful bidder had not been impleaded. It baffles us that that this fundamental aspect was not kept in view by the High Court. Such a course is clearly impermissible. Since the High Court did not have the material facts before it, it did not notice that the offer made by IDCOL through its agent had been finalized and final order had been passed. It is true that in greater public interest the courts can ask parties to offer higher amounts. But that can necessarily be done after hearing the parties concerned. Since that has C not been done in the present case, the High Court's order cannot be maintained and is accordingly set aside and the matter remitted to the High Court for fresh disposal. The writ petitioner shall implead IDCOL and the present appellant as parties within a period of three weeks. If it is not done, the writ petition will be dismissed. The High Court is requested to dispose of the matter within a period of four months from the receipt of order, only if D necessary parties as indicated above are impleaded. We make it clear that we have not expressed any opinion on the merits of the case. Appeal is disposed of accordingly. No costs. N.J. Appeal disposed of.