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1996 DIGILAW 151 (GAU)

Sure Trade Pvt. Ltd. v. State of Assam

1996-07-12

D.N.CHOWDHURY

body1996
Heard Mr. C.Baruah, learned counsel for the petitioner Also heard Mr. K.H. Choudhury, learned counsel for the respondents. 2. Petitioner engaged in a contract of supply of Potable Alcohol/Rectified Spirit (Grade I) (hereinafter referred as spirit) to the North Lakhimpur Warehouse for supplying country spirit to retail vendors for a period of 3 years i.e. 16.7.93 to 15.3.96 at the rate of Rs.l 1.36 per LPL. As per clause 1 of the contract' the rate of per LPL is subject to reduce or increase proportionately, if and when the cost price and or duties and other levies on Potable Alcohol/Rectified Spirit (Grade I) escalates or comes down as the case may be in the exporting States. The licence conditions of clause 5 (A) also complied with the rate of cost price shall be subject to reduction or increase proportionately, if and when the cost price and/or duties and other levied on Potable Alcohol/Rectified Spirit (Grade I) escalates or conies down as the cause may be in the exporting States. In the case in hand the price was raised from 11.36 per LPL to 18.10 per LPL with effect from 14.1.94 as per 16 of the notice inviting tenders the Government can reduce or increase proportionately the contract period if and where the cost price and/or duty levied on Potable Alcohol/Rectified Spirit escalates or comes down as the case may in the exporting States. According to the petitioner due to decontrol of molasses by the Government of India vide notification dated 10.6.93 the cost price of Ractified Spirit enhanced in the exporting State from the months of July, 1993. As a result, petitioner had to procure the same from the State of UP at the increase rate of cost price against the import permits issued by the respondent No.3 from time to time since July, 1993. Keeping in mind the contractual agreement and also as per law the petitioner continued to supply the spirit and in the meantime writ petitioner approached the authority for assuaging their grievance. 3. Mr. Baruah, learned counsel for the petitioner has brought my attention to the Govt. order dated 6.8.94,9.2.95,5.8.95 relating to the Silchar Warehouse wherein the Govt. compensated the contracts because of escalating of price in the exporting States, enhanced the rate of per LPL and extended terms of contract. 3. Mr. Baruah, learned counsel for the petitioner has brought my attention to the Govt. order dated 6.8.94,9.2.95,5.8.95 relating to the Silchar Warehouse wherein the Govt. compensated the contracts because of escalating of price in the exporting States, enhanced the rate of per LPL and extended terms of contract. Petitioner also averred that the contractors of other Warehouses have got similar relief and as the petitioner is similarly situated and supplies potable alcohol/ spirit to interior place, therefore there should not be any justifiable reason for depriving him from the same relief. 4. On hearing the learned counsel for the parties and on perusal of the petition, it appears that State Government has power and discretion to reduce or increase the contract rate as well as the extension of the period of contract when the cost price and/or duties and other levies on Potable Alcohol/Rectified Spirit escalates or comes down as the case may be in the exporting States. However, that discretion is coupled with duty and is required to act justly, fairly and reasonably and the said action of the authority must be in conformity with justice and fair play. Be that as it may, in the instant case petitioner has already submitted representations dated 11.4.94 and 16.2.95 etc before the respondent No. 1, the Secretary to the Govt. of Assam, Excise Department, Dispur, Guwahati-6,1 find there is no justifiable reasons for not considering the representation of the petitioner. In that view of the matter I direct the respondent No. 1, the Secretary to the Govt. of Assam Excise Department, Dispur to consider the representation of the petitioner which are pending before him in accordance with law, taking into consideration the similar other cases where the authority has already exercised their jurisdiction in favour of enhancement of price rate and extension of period of contract to the other petitioners. Respondent No.l shall pass appropriate order in accordance with law within one month from the receipt of the certified copy of this order by a speaking order. With the above direction the petition is disposed of.