Shailendrakumar Laxminarayan Awasthi v. Corporation of the City of Nagpur
2000-06-28
J.N.PATEL, S.K.SHAH
body2000
DigiLaw.ai
JUDGMENT - J.N. PATEL, J.:---Rule. By consent, heard forthwith. 2. The petitioner, who is an old contractor, has impugned the decision of the Standing Committee of the respondent-Corporation, in awarding the contracts of cremation grounds in Nagpur, to two private organizations, without inviting tenders. It is specifically contended that the petitioner has made an offer of Rs. 4.82 lacs for being awarded the contract in respect of Moksha Dham Ghat. It is further contended by the petitioner that if the tenders are invited for giving contract of cremation grounds, commonly known as "Shamshan Ghats", the Corporation would be greatly benefited and the offer for the Ghats will be somewhere in the range of Rs. 5 lacs to Rs. 6 lacs and ignoring all this, the Standing Committee has taken a decision to grant contract to these two organizations for less than Rs. 2,50,000/- which has resulted in substantial loss of revenue to the Corporation. 3. Mr. Kaptan, the learned Counsel for the respondent, submits that the standing committee has taken its decision keeping in view that the two organizations to whom the contracts have been granted, are social organizations and they have taken this contract with an understanding that they will charge reasonable price and one of them agreed to provide free fuel to poor people whose bodies are brought for cremation at Ambazari Ghat. Mr. Kaptan submits that the impugned resolution has not been given effect and no agreement is executed in the matter. 4. In our considered opinion, the Standing Committee has not acted fairly and in public interest. The organizations to whom the contract is to be awarded, have not specified what will be the "reasonable charges" which they will levy for supplying fuel which could have shown their bona fides. We do not find that these organisations have any philanthropic object but definitely have commercial purpose in obtaining such contract. The avowed object of supplying free fuel to poor persons cannot be regulated and enforced by the Corporation officials. 5. The respondent Corporation has failed to place before us any justification or valid reason for not calling tenders for giving contract, in the background that such award of contract at the old rate (which is half the rate offered by petitioner) is going to cost substantial loss to the Corporation in its revenue.
5. The respondent Corporation has failed to place before us any justification or valid reason for not calling tenders for giving contract, in the background that such award of contract at the old rate (which is half the rate offered by petitioner) is going to cost substantial loss to the Corporation in its revenue. The only inference one can draw is that the organisation which are granted such favour are the chosen one to benefit from such deal at the cost of causing prejudice to public revenue and is nothing but mala fide act on the part of the Standing Committee as it has betrayed the public trust reposed in them by taking such a partisan decision. Therefore, we quash and set aside the resolution dated 18-3-2000 of the Standing Committee and direct the respondent-Corporation to invite tenders for giving contracts of cremation grounds in Nagpur. 6. Rule is made absolute in the aforesaid terms with no order as to costs. Rule made absolute. -----