Supreme Court Directs State to Issue Fresh Tender for Nutrition Programme Due to Administrative Lethargy. State's Failure to Invite Fresh Tenders Since 2017-18 Led to Significant Losses to Public Exchequer.

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Case Note & Summary

The case involved M/s B.K. Enterprises appealing against the High Court of Manipur's order regarding the tender process for transporting food grains under the Wheat Based Nutrition Programme (WBNP). The High Court had directed the State Government to issue a fresh Notice Inviting Tender (NIT) within ten days and complete the tender process within twenty days. The appellant contended that the State's failure to invite fresh tenders since 2017-18 caused significant losses to the State and the Public Exchequer. The High Court's interim order had allowed for temporary arrangements, but the State continued these arrangements without finalizing the tender process, which the Supreme Court criticized as lethargy and negligence. The State's counsel indicated a willingness to conduct a fresh tender process but cited administrative difficulties. The Supreme Court found this explanation vague and unacceptable, emphasizing the need for a fair and transparent tendering process. Ultimately, the Supreme Court directed the State to issue a fresh NIT within ten days and complete the tender process within six weeks, while also mandating a compliance report to be submitted to the Court. The interim arrangements were allowed to continue until the end of 2021 to prevent inconvenience to beneficiaries. The appeal was disposed of with these directions.

Headnote

A) Administrative Law - Tender Process - Delay in Issuing Fresh Tenders - Code of Civil Procedure, 1908 - The State of Manipur failed to issue fresh tenders for transportation of food grains under the WBNP since 2017-18, leading to significant losses to the Public Exchequer. The court directed the State to issue a fresh NIT within 10 days and complete the tender process within six weeks, emphasizing the need for transparency and compliance (Paras 6-7).

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Issue of Consideration

Whether the State of Manipur acted negligently in not issuing fresh tenders for transportation under the Wheat Based Nutrition Programme.

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Final Decision

The Supreme Court directed the State of Manipur to issue a fresh NIT within ten days and complete the tender process within six weeks, allowing interim arrangements to continue until 31.12.2021. The State was also ordered to submit a compliance report to the Court.

Law Points

  • Tender process
  • Public Exchequer
  • Administrative negligence
  • Fair and transparent tendering
  • Compliance report
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Case Details

2021 LawText (SC) (11) 161

Civil Appeal No. 6532 of 2021

2021-11-12

M.R. Shah, A.S. Bopanna

Shri Siddhartha Dave, Shri Pukhrambam Ramesh Kumar

M/s B.K. Enterprises

The State of Manipur and Another

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Nature of Litigation

Appeal against the High Court's order regarding tender process for transportation under WBNP.

Remedy Sought

M/s B.K. Enterprises sought to challenge the High Court's directions and ensure a fair tender process.

Filing Reason

The appellant alleged that the State's failure to issue fresh tenders caused significant losses.

Previous Decisions

The High Court had directed the State to issue a fresh NIT and complete the tender process.

Issues

Negligence in issuing fresh tenders Loss to Public Exchequer due to interim arrangements

Submissions/Arguments

The appellant argued that the State's inaction led to financial losses. The State claimed administrative difficulties in implementing the High Court's order.

Ratio Decidendi

The court emphasized the necessity of conducting a fair and transparent tender process to prevent losses to the Public Exchequer and criticized the State's inaction as administrative negligence.

Judgment Excerpts

The State Government and in particular, the Social Welfare Department shall take up immediate steps and issue fresh NIT for transportation of food grains and Micronutrients under the WBNP within a period of 10(ten) days from the date of receipt of a copy of this judgment and order. It appears prima facie that everybody is happy, namely, the officers of the State Government, more particularly the officers of the Social Welfare Department and the Contractors.

Procedural History

The appellant filed a writ petition before the High Court, which was disposed of with directions to issue fresh tenders. The appellant then filed a writ appeal, leading to the Supreme Court's review of the High Court's order.

Acts & Sections

  • Code of Civil Procedure, 1908:
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