Case Note & Summary
The petitioner, Shri Vishal Ishwar Kulthe, filed a Public Interest Litigation challenging the tender process initiated by the Nashik Municipal Corporation for appointing an Octroi and Escort Fees Collection Agent for the financial year 2011-2012. The petitioner contended that the Corporation failed to comply with Government Resolution dated 19.4.2011, which mandated that the upset price for the financial year 2011-2012 should be 15% more than the upset price fixed for the previous financial year. The petitioner sought quashing of tender notices dated 30.3.2011 and 11.4.2011, General Body Resolution dated 5.5.2011, Standing Committee Resolution dated 12.5.2011, and Letter of Acceptance dated 12.5.2011 issued in favor of respondent no. 4, M/s. Konark Infrastructure Ltd. The court heard arguments from all parties. The petitioner argued that the Government Resolution was binding on the Corporation under Section 66A of the Bombay Provincial Municipal Corporation Act, 1949, and the General Body's decision not to apply the criteria was illegal. The respondents contended that the GR was not mandatory or that the Corporation had discretion. The court analyzed the provisions of Section 66A and the GR, holding that the Corporation is bound by the directions of the State Government. The court found that the tender process was flawed as the upset price was not fixed in accordance with the GR. Consequently, the court quashed the tender notices, resolutions, and the Letter of Acceptance, and directed the Corporation to initiate a fresh tender process in compliance with the GR.
Headnote
A) Municipal Law - Tender Process - Government Resolution Binding - Section 66A Bombay Provincial Municipal Corporation Act, 1949 - The court considered whether the Nashik Municipal Corporation was bound by Government Resolution dated 19.4.2011 requiring upset price to be 15% more than previous year. Held that the Corporation is bound by the GR under Section 66A, and failure to comply renders the tender process invalid (Paras 2-5).
Issue of Consideration
Whether the tender notices dated 30.3.2011 and 11.4.2011, and subsequent resolutions and acceptance, are valid when the upset price was not fixed as per Government Resolution dated 19.4.2011 requiring a 15% increase over the previous year's upset price.
Final Decision
The court quashed the tender notices dated 30.3.2011 and 11.4.2011, General Body Resolution dated 5.5.2011, Standing Committee Resolution dated 12.5.2011, and Letter of Acceptance dated 12.5.2011. Directed the Corporation to initiate a fresh tender process in compliance with the Government Resolution dated 19.4.2011.
Law Points
- Government Resolution binding on Municipal Corporation under Section 66A of Bombay Provincial Municipal Corporation Act
- 1949
- Upset price must be 15% more than previous year
- Tender process must comply with statutory directions
