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1988 DIGILAW 19 (GUJ)

RELIANCE CELLULOSE PRODUCTS LTD. v. OIL AND NATURAL GAS COMMISSION

1988-02-17

P.R.GOKULAKRISHNAN, R.A.MEHTA

body1988
R. A. MEHTA J. ( 1 ) APPEALS admitted. The learned advocates appearing for the respective parties waive service in all these appeals for the respective respondents. ( 2 ) THE respondent Oil and Natural Gas Commission had invited tenders for supply of Carboxy Methyl Cellulose (CMC ). Seven tenders were received from different parties. It appears that the sample of a party viz. Reliance Cellulose was rejected and therefore it had preferred Special Civil Application No. 6192 of 1987 against the authorities of the respondent-Commission. The other bidders were not parties to that petition. After hearing the petitioner and the respondent-Commission it appeared to the learned Judge that there was genuine misunderstanding on the part of the petitioners as to the temperature at which the sample was to be tested. because there was no specific mention about the same in the tender. Therefore the learned Judge observed that without going into the question whether the testing of the sample was correct or not directed the respondent-Corporation to accept the fresh sample from the petitioner and analyse the same according to the test which they have applied in case of other parties. Respondent nos. 6 and 7 were added subsequently. Since one of the tenderers was given an opportunity of submitting a fresh sample for re-testing other tenderers were also directed to be given similar opportunity and those samples were to be tested at 30 C. ( 3 ) THE learned Judge further directed that after the samples are found to be according--to the specifications mentioned in the tender the Commission authorities (respondent nos. 1 to 5) shall fix the date on which all the tenderers will remain present and they will be permitted to bid inter se as regards the price so as to quote prices lower than those quoted in the tender. It is this later direction which has become the subject-matter of rival contentions. Appellant of L. P. A. No. 63 of 1988 and 70 were not before the learned Single Judge. They were not parties to the petition and as they were adversely affected they have filed the aforesaid two appeals after obtaining leave of the Court. It is this later direction which has become the subject-matter of rival contentions. Appellant of L. P. A. No. 63 of 1988 and 70 were not before the learned Single Judge. They were not parties to the petition and as they were adversely affected they have filed the aforesaid two appeals after obtaining leave of the Court. ( 4 ) DIFFERENT contentions of different appellants are that the learned Judge should not have passed the order in absence of the parties likely to be affected; secondly the learned Judge could not have directed bidding inter se in view of Clause-14 of the tender which prohibited further negotiations and the bids in the tender are emphatically stated to be firm and final. Moreover the respondent-Commission has not carried out the order of the learned Judge and it has not permitted any inter S6 bidding and only fresh offers are taken. It is the contention of some of the parties that the said order of the learned Judge was on the basis of consent and concensus of the parties. ( 5 ) AT the hearing of these appeals it was submitted that an early and amicable solution of the dispute is in the interest of everyone concerned. Now all the parties in these five appeals are agreed that each of the se five appellants shall be allotted the tender for quantity of 400 MT and it is also agreed that the Court may fix the price for the same. ( 6 ) AS far as MCA Chemicals Hyderabad and Banjara Chemicals Hydera are concerned they are out of question because their prices in the first tender as well as in the second tender were the highest being Rs. 23 116 and 22 500 per M. T. respectively. Therefore these two bids are absolutely out of question and they are not before us. They have not filed any appeal. ( 7 ) NOW all the parties agree that each of the five appellants will supply 400 MT of CMC to the respondent Commission at the price fixed by this Court the price to be fixed is ex-factory price F. O. R. nearest railway station and the freight to be borne by the ONGC and this price is exclusive of central sales tax local sales tax as applicable and excise duty at 10% with C-2 certificate. ( 8 ) IN order to decide the question of price which is being done with the consent of all parties it is necessary to have a glance at the prices offered by the different parties in the two sets of tenders. They are given in a tabular form as under : ( 9 ) ON behalf of the Commission their learned Counsel submitted that in the second set of tenders the minimum price that is offered is Rs. 14 500 per M. T. and therefore that should be the price uniformly for all the suppliers. On the other hand the appellants have submitted that the price should be Rs. 17 0 per MT because that was the minimum price at the first bid. It is also submitted by the appellants that price could have been lower if the order is for the large quantity. However when the supply is now divided between the five and the quantity is small being 400 MT each the supply at the rate of Rs. 14 500 would be uneconomic. It is also submitted that the appellants in LPA No. 60/88 who are rivals to the other appellants monopolising the supply in the past and therefore they have tried to undercut their price by offering Rs. 14500 and it cannot be said to be a reasonable price and the other suppliers cannot be made to supply small quantities at that price. ( 10 ) IT is to be noted that the price of Rs. 14 500 which is quoted by the applicants in Letters Patent Appeal No. 69 is for the quantity more than 950 MT. If the quantity is less than 450 MT their price is Rs. 15 250 per M. T. In these circumstances the rate of Rs. 15 250 per MT seems to be reasonable and each of the appellants in these appeals is directed to supply the goods at the price of Rs. 15 250 ( 11 ) ACCORDINGLY all these appeals are partly allowed and it is directed that the respondent-Commission shall accept the tender of each of these five appellants for supply of 400 MT at the price of Rs. 15 250 per MT. The other charges and places of destination etc. shall be in accordance with the conditions of tenders. 15 250 ( 11 ) ACCORDINGLY all these appeals are partly allowed and it is directed that the respondent-Commission shall accept the tender of each of these five appellants for supply of 400 MT at the price of Rs. 15 250 per MT. The other charges and places of destination etc. shall be in accordance with the conditions of tenders. It is also agreed that the goods shall be supplied as per the samples furnished by the appellants and approved by the ONGC. There will be no order as to costs. .