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2022 DIGILAW 284 (JK)

Syed Abrar Ashraf Andrabi v. Union Territory of JK

2022-05-27

SANJEEV KUMAR

body2022
JUDGMENT : 1. Impugned in this petition is communication dated 30th March, 2022, issued by Respondent No. 3 to the Petitioner, whereby the Petitioner has been informed that the consignment of Rye Seed, supplied by the Petitioner has not been found in consonance with NIT/Supply Order, and, therefore, the Petitioner has been called upon to lift back the seed consignment urgently to avoid any loss to the said seed. 2. Briefly stated the facts leading to the filing of this Petition are that the Respondent No. 2 vide his e-NIT No. DSHK/Supply/NIT/2021-22/11350-62 dated 3rd November, 2021, invited e-tenders from firms/Companies dealing in Fodder Seeds in two bid system (Technical 1 and Financial 2) for fixing rate contract for supply of Fodder Seeds, which included Perennial Rye. The Petitioner participated in the process and submitted his bid for supply of the requisite seeds including Seed Perennial Rye, Makhan grass or Punjab grass variety as prescribed in the NIT. The Petitioners’ bid being lowest was accepted inter alia for the supply of Maize, Perennial Rye of Makhan grass variety truthfully labelled (for short T/L) in 1 Kg packages amounting to the quantity of 100 quintals at the rate of Rs.39,900 per quintal, pursuant to the supply order issued by Respondent No. 3 vide his No. DSHK/Supply/2021-22/Seed/35/15883-88 dated 21st February, 2022. The Petitioner made the supplies of Maize and Perennial Rye as per the supply order. 3. The Respondent Department required some more quantity of Perennial Rye Seed, and, therefore, placed another supply order bearing No. DSHK/Supply/2021-22/Seed/35/16335-40 dated 7th March, 2022 for 70 quintals of Perennial Rye at the accepted rate of Rs. 39,900 per quintal. The Petitioner claims that he has so far supplied 170 quintals of Perennial Rye (truthfully labelled). The quality of the grass so supplied was duly verified and the same was found in accordance with the sample prescribed earlier. There is requisite entry made in the Department Register in this regard. 4. The Petitioner after complying with the supply orders raised the bill for an amount of Rs. 39.90 lacs against the supply of 100 quintals of Perennial Rye (Makhan grass T/L) and also raised another bill for an amount of Rs. 27.93 lacs, on account of supply of additional 70 quintals of the grass. Both the supplies have been duly recorded in the records of the Department. 5. 39.90 lacs against the supply of 100 quintals of Perennial Rye (Makhan grass T/L) and also raised another bill for an amount of Rs. 27.93 lacs, on account of supply of additional 70 quintals of the grass. Both the supplies have been duly recorded in the records of the Department. 5. It appears that the Respondents, after they had received the supplies of grass Seeds from the Petitioner took up the matter with the Area Manager, National Seeds Corporation Limited, Jalandhar, for seeking clarification with regard to quality certification of Perennial Rye Seed. 6. As per the communication of the Respondent No. 4 dated 26th March, 2022, addressed to the Area Manager National Seeds Corporation, it clearly transpires that the Respondents wanted to know the difference between the Perennial Rye Seeds (Certified Seed) and Perennial Rye (truthfully labelled Seed). In response to the communication of Respondent No. 4, the National Seeds Corporation, vide its communication dated 28th March, 2022, informed the Respondent No. 4 that Certified Seed of Perennial Rye is neither produced by National Seeds Corporation, Limited, nor by any Private/other agency, because there is no seed standard available for Rye grass as per Indian Minimum Seeds Certification Standards, 2013. 7. Upon receipt of clarification from National Seeds Corporation, Limited, Jalandhar, the Directorate of Agriculture Kashmir was approached by the Respondent No. 3 for seeking clarification with regard to difference, if any, in the Perennial Ryes (Certified) and Perennial Rye (truthfully labelled). The Chief Technical Officer, Directorate of Agriculture, Kashmir, vide his communication No. 28th March, 2022 also informed the Respondents that no seed standards are available of Rye grass as per the Indian Minimum Seeds Certification Standards, 2013, and, therefore, the item Rye grass does not fall within the ambit of such certification. 8. It is the contention of the Petitioner that after seeking clarification from the Department of Agriculture as also the National Seed Corporation, the Respondents had no reason or justification to deny legitimate payment to the Petitioner. There are some further inter-departmental communications on the subject which have ultimately resulted into taking a decision by the Respondents to reject the consignment of the Petitioner. 9. On this Petition coming up for consideration on 18th April, 2022, this Court while issuing notice, which was waived by Mr. There are some further inter-departmental communications on the subject which have ultimately resulted into taking a decision by the Respondents to reject the consignment of the Petitioner. 9. On this Petition coming up for consideration on 18th April, 2022, this Court while issuing notice, which was waived by Mr. Usman Gani, learned GA appearing for the Respondents, also directed the Director Sheep Husbandry Department to remain present on the next date of hearing to assist the Court. The Respondents were also permitted to go ahead with fresh tender with further direction not to finalise the same. The Director Sheep Husbandry Department appeared in person, but could not explain logically the reason as to why the consignment of Rye grass supplied by the Petitioner has been rejected. 10. Today, when the case was again taken up for consideration, the Accounts Officer of the Respondents along with Ms. Rekha learned GA, caused their appearance, and informed this Court that they have opened the price bid, and have decided to float fresh tenders for the reason that only one bid has been found responsive. 11. Be that as it may, the respondents have proceeded in the matter in violation of the interim directions passed by this Court on 18th April, 2022. It was a fit case where this Court could have taken cognisance of the mater and issued Contempt notice to the Respondents, however, having regard to the nature of controversy involved and the submissions made on both sides, I with the consent of parties, admitted this Petition and took it for final consideration. 12. As noticed above, e-NIT dated 3rd November, 2021 was issued by the Respondent No. 2 for procuring Oats, Maize and Perennial Rye Seeds. e-NIT clearly mentioned the class of Rye Seed as “Certified”. As per Clause 13.2 of the tender notice, the Respondent No. 2 is entitled to incorporate in the supply order any condition that is not indicated in the NIT. For facility of reference Clause 13.2 is reproduced hereunder : 13.2 “any condition that is not indicated in the NIT can be incorporated in the supply order before the agreement for execution of the contract, if needed.” 13. It is not in dispute that the bid submitted by the Petitioner for Maize and Perennial Rye were found to be lowest and accepted by the Respondents. It is not in dispute that the bid submitted by the Petitioner for Maize and Perennial Rye were found to be lowest and accepted by the Respondents. Consequent upon acceptance of Petitioners bids, supply order bearing No. DSHK/Supply/2021-22/Seed/35/15883-88 dated 21st February, 2022 was issued to the Petitioner. From bare reading of the supply order dated 21st February 2022 (supra), the Petitioner was given the option to supply Perennial Rye variety Makhan Grass (Certified or T/L). 14. As, it is evident from the communications of National Seed Corporation and the Directorate of Agriculture, Kashmir, neither National Seeds Corporation, Limited, nor any other agency, Government or Private, produces Certified Perennial Rye, for the reason that there are no Seed standards available for Rye grass as per the Indian Minimum Seeds Certification Standards, 2013. From the communication of National Seed Corporation, Limited, dated 28th March, 2022 and communication dated 28th March, 2022, issued by Director Agriculture Kashmir, one thing is abundantly clear that Rye grass (Certified) is neither produced, nor is available anywhere in the country. 15. That being the admitted position, it is clear that there was inherent flaw in the e-NIT issued by Respondent No. 2 on 3rd November 2021. The Respondents were aware of this flaw, which was covered up by the Respondents when they issued supply orders to the Petitioner. As is apparent from reading of the supply order dated 21st February, 2022, the Petitioner was given the option to supply Perennial Rye (Certified or T/L). It is in compliance to the supply orders issued by the Respondents, the Petitioner supplied truthfully labelled T/L Perennial Rye Seed, and, therefore, complied with the supply orders. It is not the case of the Respondents that the supplies made by the Petitioner have been found to be defective or sub-standard, and, therefore, cannot be accepted. The decision to reject the supplies of Perennial Rye (truthfully labelled) made by the Petitioner has been taken on the ground that the supply order and the supplies actually made by the Petitioner are not in consonance with e-NIT, which required Perennial Rye (Certified) to be supplied by the Petitioner. The decision to reject the supplies of Perennial Rye (truthfully labelled) made by the Petitioner has been taken on the ground that the supply order and the supplies actually made by the Petitioner are not in consonance with e-NIT, which required Perennial Rye (Certified) to be supplied by the Petitioner. During the course of discussion, the Director Sheep Husbandry Department accompanied by the Accounts Officer of the Department informed this Court that they had floated fresh tenders, inviting bids to supply Perennial Rye Seed variety Makhan grass or Punjab grass (truthfully labelled), but due to poor response, they have withdrawn from the process and have decided to issue fresh tenders. Respondents have in their objections tried to justify the impugned order on the ground that the supplies made by the Petitioner are not in consonance with the terms and conditions of the NIT, and, therefore, cannot be accepted. 16. Be that as it may, the fact remains that the supplies of Perennial Rye (truthfully labelled) have been made by the Petitioner, strictly as per the supply orders dated 21st February, 2022 and 7th March, 2022. It is not the case of the respondents that supply of Perennial Rye Seed made by the Petitioner is in violation of any terms and conditions of the supply order. It is true that as per e-NIT issued on 3rd November, 2021, Perennial Rye Seed required to be supplied was Makhan grass or Punjab grass variety (Certified), but the Respondents having been aware that such certified variety was not available, probably invoked Clause 13.2 of general instructions appended with NIT and issued the supply order, giving option to the Petitioner to supply either certified or T/L variety of Perennial Rye Seed. The Petitioner honoured the commitment and made the supplies as per the supply order. 17. The Petitioner acting upon the representation of the Respondents has changed his position to his detriment, and, therefore, the Respondents cannot be permitted to wriggle out of its obligation to make the payment at the accepted rates, which is due to the Petitioner. The Doctrine of Promissory Estoppel will step in and the Respondents are bound by their representation/commitment acting upon which the Petitioner has changed his position to his detriment. The Doctrine of Promissory Estoppel will step in and the Respondents are bound by their representation/commitment acting upon which the Petitioner has changed his position to his detriment. The order impugned dated 30th March 2022, rejecting the supplies made by the petitioner is bad in the eye of law and is hit by the Doctrine of Promissory Estoppel (see Motilal Padampat Sugar Mills vs. State of U.P., AIR 1979 SC 621 ). 18. For the foregoing reasons, this Petition is allowed and the order impugned dated 30th March, 2022 passed by the Director Sheep Husbandry, Kashmir is quashed. The Respondents are directed to make the payment to the Petitioner, which is due to him on account of supply of Perennial Rye variety Makhan grass or Punjab grass (truthfully labelled) in terms of the supply orders dated 21st February, 2022 (supra) and 7th March, 2022 (supra). Let the Respondents release the payment of the Petitioner within a period of two months from the date a copy of this order is served upon the Respondents. In case, the amount due to the Petitioner is not paid within stipulated period, entire amount shall become payable with simple interest @ 9% P.A. Upon making the payment due to the Petitioner for the supplies already made, Respondents can go ahead with fresh tenders.