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Madhya Pradesh High Court · body

2003 DIGILAW 19 (MP)

Malav Bunkar Sahkari Samiti v. State Of M. P.

2003-01-03

ARUN MISHRA

body2003
ORDER : In this petition, the petitioners are assailing the memo (Annexure-G) dated 31-8-1990, issued by respondent No. 1 State of M.P. clarifying the situation with respect to entry 31-C in Schedule-B and entry made in Schedule-C with reference to Rule 14 and 14-A of M.P.Store Purchase Rules. 2. The petitioners are primary societies engaged in manufacture of bandage, guage cloth etc. There are as many as ten other such primary societies carrying on the same work. The petitioner Malav Bunkar Sahkari Samiti Limited, Ashta, District Sehore is a society of handloom weavers registered under the co-operative societies Act, 1960. Petitioner Nutan Bunkar Sahkari Samiti Limited, Alipur, Ashta, Distt. Sehore is also a society of handloom weavers registered under the said Act. They are primary societies engaged in the business of manufacture of bandage, guage cloth and other handloom products. The petitioners submit that absorbent cotton guage, cotton confirming bandage, etc are items, which are manufactured under a licence granted by the competent authority under the Drugs and Cosmetics Act, 1940, to manufacture these items. Similarly, other primary societies have also been granted licence under the Act to produce these items. The petitioner societies have been manufacturing bandage, guage cloth etc for government hospitals and dispensaries. The state Government have also framed Rules from time to time for sale and purchase of these items too. The petitioners submit that policy of the State Government is to make their purchases of stores for public service in such a way as to encourage development of the industries in the State in particular and the country in general to the utmost possible extent consistent with economy and efficiency. With a view to give effect to the policy, the State Government has framed rules. These Rules are contained in the Financial Code, Rule 14 thereof states that the articles contained in Schedule-B shall be purchased through the Madhya Pradesh Laghu Udyog Nigam Limited only at the rates fixed by them. No tenders for purchase of such articles shall be called by the competent authority separately. Schedule-B at Serial No.31 provides for 'medical stores article' such as Drugs, Surgical Instruments and Dressings including absorbent cotton. The original entry at Serial No.121 of Schedule-B provided for "Handloom articles" such as 'guage, Bandage cloth, Sarees, Chaddar, Bed spreads, curtain and upholstery materials, Tussar Fabrics. The petitioners further submit that the State Govt. Schedule-B at Serial No.31 provides for 'medical stores article' such as Drugs, Surgical Instruments and Dressings including absorbent cotton. The original entry at Serial No.121 of Schedule-B provided for "Handloom articles" such as 'guage, Bandage cloth, Sarees, Chaddar, Bed spreads, curtain and upholstery materials, Tussar Fabrics. The petitioners further submit that the State Govt. has effected the amendments in the Store Purchase Rules. Rules 14-A and 14-B were inserted after Rule 14. Schedule-C was also added and entries at S. No. 121 and 124 were deleted from Schedule-B under Rule 14. Thus, by virtue of amendment in the Rules as aforesaid, all department heads were notified that the aforesaid items included in Schedule-'C' be purchased from M. P. Handloom Weavers Federation Limited. The State Govt. through Secretary, Department of Health and Family Welfare, Bhopal, also issued instructions to all the Chief Medical Officers and the Directorate in the State that these items be purchased from the M.P.State Handloom Weavers Co-operative Federation. The petitioners submit that it appears that the respondent M. P. Laghu Udyog Nigam wrote to the State Govt. seeking clarification in respect of purchase of the said items. The State Govt. clarified vide memo (Annexure-G) dated 31-8-1990. 3. In return the respondent No.2, M. P. Laghu Udyog Nigam Ltd contends that the Gauge cloth and bandage cloth are reserved at Serial No.31-C under Medical Stores 'dressing including absorbant cotton' for purchase from M.P.L.U.N. The petitioner's can supply the goods through the M.P. Laghu Udyog Nigam Ltd. But petitioners may not like to do so as the Nigam prices are normally more competitive than the rate of M. P. Rajya Bunkar Sahakari Samiti. Gauge/bandage cloth is reserved item under S.No.31 of Schedule-B read with Rule 14 for procurement through the M.P.Laghu Udyog Nigam. The State Govt. vide the letter dated 31-8-1990 clarified that guaze/bandage cloth required as Drugs and Medicines are to be procured through Laghu Udyog Nigam and guaze/bandage cloth required for other purposes such as stationery etc should be procured through the State Textiles Corporation and M. P. State Handloom Weavers Co-operative Society. 4. Respondent No.3 in its return supports the submission made by the petitioner. 5. Intervenors, have supported the respondent No. 2 M.P.L.U.N. Intervenors are small-scale industries. 6. 4. Respondent No.3 in its return supports the submission made by the petitioner. 5. Intervenors, have supported the respondent No. 2 M.P.L.U.N. Intervenors are small-scale industries. 6. Shri Shroti learned counsel for petitioners submitted that the clarification Annexure-G issued on 31-8-1990 is against the amendment effected on 25-7-1984, after amending Rule 14 and inserting Rule 14-A and 14-B and Schedule-C guage Bandage for medical purpose has to be purchased from petitioners. 7. Shri Pandey, learned counsel appearing for the respondent No.2 submits that the clarification (Annexure-G) dated 31-8-1990 is in tune with rules items 31-C included in Schedule-B and the same is not violative of the amendment effected. 8. Shri Piyush Dharmadhikari, learned counsel for the intervenors submitted that the items mentioned against entry No.31 in Schedule-B appended to the Store Purchase Rules of State Govt. are reserved for marketing by the M. P. Laghu Udyog Nigam. The scope of entry 121 of Schedule-B is different than entry at 31-C. Entry 121 now after deletion find place as Schedule-C, which does not include medical store articles. 9. In order to appreciate the submissions raised it is necessary to consider Rule 14 of M.P.Store Purchase Rules read as under : OTHER LANGUAGE 10. It is clear from Rule 14 that the articles, which are mentioned in Schedule-B, are to purchased through M.P.L.U.N. respondent No.2. Schedule-B entry item 31 reads as under : "31. Medical Stores :- Drugs Surgical Instruments Dressings including absorbent cotton" 11. By the amendment in-corporated in 1984 Rule 14-A and 14-B are inserted which read as under : "14-A : Handloom articles included in Annexure-C which is subject to revision from time to time produced by Handloom Weavers and Co-operative Societies of Handloom Weavers of Madhya Pradesh shall be purchased either through the Madhya Pradesh State Textile Corporation Limited or the M. P. State Handloom Weavers Co-operative Society Limited only at the rates fixed by them. No tenders for purchase of such articles shall be called by the competent authority separately. "14-B. Readymade garments produced within Madhya Pradesh shall be purchased either through the M. P. State Textile Handloom Weavers Co-operative Federation only. No tenders for purchase of such articles shall be called by the Competent Authority separately." 12. Schedule-'C' is quoted below : Guage Bandage Cloth Sarees Chaddars Bed Spreads Curtain and upholstery materials Tussar Fabrics. 13. "14-B. Readymade garments produced within Madhya Pradesh shall be purchased either through the M. P. State Textile Handloom Weavers Co-operative Federation only. No tenders for purchase of such articles shall be called by the Competent Authority separately." 12. Schedule-'C' is quoted below : Guage Bandage Cloth Sarees Chaddars Bed Spreads Curtain and upholstery materials Tussar Fabrics. 13. It is clear from reading of Store Purchase Rules that under Rule 14 item 31 medical stores' that Drugs, Surgical Instruments and Dressings including absorbent cotton is to be purchased from M. P. Laghu Udyog Nigam. The entry has to be given full effect and has to be understood in the context of the deleted item 121, which is incorporated in Schedule-C. Now Schedule-C includes "handloom articles" such as guage, bandage cloth, etc which were specified in deleted item 121 in Schedule-B it cannot be said that the absorbent cotton reserved for medical stores was included at item 121 of Schedule-B. By virtue of deletion effected in 1984 items entry 121/124 were incorporated in Schedule-C. Thus, in my opinion the articles such as Drugs, Surgical Instruments, dressings and absorbent cotton which are used for medical purpose have to be taken be excluded from the purview of entry gauage/bandage mentioned in Schedule-C. Thus, specific entry and the articles specified item 31-C under head of Medical Stores have to be taken be excluded from the general entry in Schedule-C which only intended inclusion of 'handloom articles' entry of guage/cotton in handloom articles heading cannot be said to include entry for 'medical store' made in item 31 Schedule-B. 14. The submission raised by the learned counsel for the petitioner, that the State has no right to purchase articles exclusively from M.P.L.U.N. State has framed the rules, which are proper in accordance with the law. The rules envisages development of small-scale industries and rules have not been assailed in writ petition. Thus, I find no merit in petition. 15. Resultantly, the writ petition is dismissed. No order as to costs.