Distillery & Chemicals Works Vs. The State of U.P. & Ors  INSC
1505 (26 November 1996)
O R D
have heard learned counsel on both sides.
admitted position is that the Commissioner had invited tenders on December 21,
1996 for supply of country made liquor in various districts of U.P. for the
year 1996- 97. Pursuant thereto, parties had submitted there tenders.
commissioner by his proceedings dated February 27, 1996 allotted to the
Co-operative Distillery Co, Ltd., the third respondent, the Districts of Saharanpur
and Haridwar, He, however, revoked the same by his proceedings dated March 27,
1996 and allotted the district of Haridwar to the appellant.
the third respondent filed writ petition challenging the cancellation and reallotment
to the appellant of Haridwar District. the High Court in the impugned order has
directed in the operative part as under:
the result, the writ petition is allowed and orders dated 26.3.1996 and
27.3.1996 contained in Annexures 6 and 6-A to the writ petition so far as it
pertains to the allotment of district Haridwar to respondent No.3 are quashed.
A mandamus is also issued commanding the respondents 1 and 2 to restore the
position as it was obtained on 27.2.1996 and the opp. parties are also
restrained from interfering in the rights of the petitioners to make supply to
the district Haridwar." Calling this order in question, the present appeal
has been filed.
18(c) of the Tender Conditions indicated that "f all the aforesaid
conditions are fulfilled the distillery situated in the district would be given
preference in respect of supplies to the same. If there are two distilleries
situated in the same district and if there is no material difference in the
rates quoted by the said two distilleries, the distillery, which was granted
the district earlier, shall be given preference." It is an admitted
position that prior to bifurcation of districts saharanpur and Haridwar, Haridwar was part of Saharanpur. It is also an admitted position
that on the earlier occasion, the third respondent was granted licence for Saharanpur
and Haridwar, The question remains: whether the factory of the third respondent
is situated in Haridwar district? It is an admitted position that the third
respondent's factory is not situated in Haridwar district.
also an admitted position that the respondent No.3 had not executed the
agreement for the purpose of issuance of the licence. As a result, no licence
had been issued as on date.
these facts, the question arises: whether the allotment to the third respondent
is correct in law? We need not express any opinion on the facts since,
admittedly, the Government did not issue any notice respondent on February 27,
1996 and the third respondent had no opportunity to have his say in that
these circumstances, the direction issued by the High Court stands set aside.
The Government is directed to issue notice to the third respondent as well as
the appellant, consider their objections and pass appropriate speaking in that
behalf for grant or refusal of licence in respect of district of Haridwar in
accordance with the Rules to the 3rd Respondent.
appeal is according allowed. The Government is directed to issued the notice
and complete the exercise within a period of six weeks from the date of the
receipt of this order. Till then status quo as on today shall continue.