In a recent legal case, the High Court provided oversight on the negligence surrounding the tender process for transportation contracts. The court’s analysis focused on the importance of following proper procedures to prevent losses to the state and public exchequer. This summary highlights the key legal aspects of the case, shedding light on the significance of upholding transparency and fairness in tender processes.
Facts
- The Division Bench of the High Court directed for equal distribution of WBNP rice amongst three contractors as a temporary arrangement for all nine routes.
- The High Court disposed of the writ petition, directing the constitution of a High Power Committee to restart the tender process afresh.
- The appellant filed a Writ Appeal against the High Court’s decision.
- Despite the High Court’s orders, no steps were taken to issue fresh NIT and complete the tender process as directed.
- The State Government and Social Welfare Department’s actions were criticized for causing losses by continuing contracts without fresh tenders.
- The State/Department apologized for not implementing the High Court’s orders due to administrative difficulties.
- The High Court directed the State to issue a fresh NIT for transportation of food grains and complete the tender process within specific timeframes.
- Appellant filed a writ petition seeking award of tender for specific routes.
- State Government showed lethargy in not inviting fresh tenders for transportation of Rice & other micronutrients under the Wheat Based Nutrition Programme.
- State issued NIT on 22.06.2017 for transporting Rice & other micronutrients.
- Higher Tender Committee recommended band rates for the routes.
- Contracts were awarded to RK & Co. as an interim arrangement.
- Fresh tenders were recommended for other routes.
- Appellant alleged huge loss to the State and Public Exchequer due to lack of fresh tenders.
- State’s negligence in continuing contracts without fresh tenders highlighted.
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Arguments
- Contracts cannot be continued without finalizing the tender process or issuing fresh tenders.
- The state appears to be content with the current arrangement, neglecting the need for fresh tendering.
- The Contract for the supply/transportation of rice and other micronutrients has been extended at old rates from 2017-18, causing possible losses to the State.
- The State has now decided to appoint a Transport Contractor for the Supplementary Nutrition Programme and will float tenders within 10 days.
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Decision
- Fresh NIT for appointment of transport contractor under Supplementary Nutrition Programme (SNP) to be issued within 10 days through e-Tender
- Fresh NIT to be conducted in a fair and transparent manner nation-wide to prevent cartel by contractors and ensure maximum price for no loss to Public Exchequer
- Entire tender process to be completed within six weeks from issuance of e-Tender
- Directions relating to transportation of goods under SNP to be continued till 31.12.2021 to avoid inconvenience to beneficiaries
- State of Manipur to submit compliance report
- Non-compliance of the order to be viewed seriously
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Case Title: M/S B.K. ENTERPRISES Vs. THE STATE OF MANIPUR (2021 INSC 720)
Case Number: C.A. No.-006532-006532 / 2021
