BISHNU PRASAD DASH versus RAJ KUMAR AGARWAL AND ORS.

Citation: [2006] SUPP. 1 S.C.R. 624 · Decided: 01-05-2006 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off

Judgment (excerpt)

A 
B 
BISHNU PRASAD DASH 
v. 
RAJ KUMAR AGAR WAL AND ORS. 
MAY I, 2006 
[ARJJIT PASA YAT AND S.H. KAPADIA, JJ.] 
Constitution of India, 1950-Article 226-Writ Petition-
Maintainability of, when party whose right affected not impleaded-Proposal 
C for tender-Government Order declaring the Corporation offering higher bid 
as successful out of the two-Subsequently, fresh bid by OS/CL offering 
highest bid but not considered being belated-Writ Petition filed-Government 
Order set aside and IDCOL declared successful-Legality of-Held: High 
Court could not entertain writ petition because the successful bidder had not 
been impleaded-Courts can ask parties to offer higher amounts in greater 
D public interest but only after hearing parties-Thus, order of High Court set 
aside and matter remitted back. 
The proposal for tender was submitted for disposal of copper cables. 
Respondent no. I-agent of OSI CL offered a price of Rs. 80 per kg for lifting 
copper cables. Thereafter, appellant-agent of IDCOL made an offer of Rs. 84 
E per kg. Government then passed an order for disposal of copper cable at the 
rate of Rs. 84 per kg to IDCOL. Thereafter, OSICL submitted a fresh offer 
at Rs. 85/- per kg. but the same was not considered since it was made belatedly. 
Government Order was challenged. High Court set aside the Government 
Order and directed that the offer of OSICL at Rs. 85/- per kg to be considered 
F by the Government at highest level. Hence the present appeal. 
Disposing of the appeal, the Court 
HELD: In the instant case, IDCOL and also the appellant who is the 
agent ofIDCOL was not made a party in the writ petition. The writ petition 
G was disposed after two days of its filing even without issuing notice to the 
parties, as such was disposed of in haste. High Court has interfered in a 
contractual matter without hearing the party whose offer had been accepted. 
High Court should not have entertained the writ petition because the successful 
bidder had not been impleaded. Such a course is clearly impermissible. Since 
H 
624 
BISHNU PRASAD DASH v. RAJ KUMAR AGARWAL [PASAYAT, J.] 
625 
the High Court did not have the material facts before it, it did not notice that A 
the offer made by IDCOL through its agent had been finalized and final order 
had been passed. It is true that in greater public interest the courts can ask 
parties to offer higher amounts. But that can necessarily be done after hearing 
the parties concerned. Since that was not done in the instant case, the High 
Court's order cannot be maintained and is accordingly set aside and the matter 
is remitted to the High Court for fresh disposal only if necessary parties- B 
IDCOL and the present appellant are impleaded. [626-H; 627-A-Dl 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2402 of 2006. 
From the Order dated 20.1.2005 of the High Court of Orissa at Cuttack C 
in W.P.(C) No. 803/2005. 
Janaranjan Das and Swetaketu Mishra for the Appellant. 
Abhisth Kumar and Raj Kumar Mehta for the Respondent. 
The Judgment of the Court was delivered by 
D 
ARIJIT PASA VAT, J. Leave granted. 
Appellant calls in question legality of the judgment rendered by a 
Division Bench of the Orissa High Court directing that the offer of Orissa 
Small Industries Corporation Ltd. (in short the 'OSICL') represented by its E 
agent (Respondent no. I) at Rs.85/- per kg. will be considered by the Government 
at the highest level, namely the Chief Minister of Orissa. It was further 
observed that it will be open for the Government to pass such orders as it 
deems fit in the larger public interest; keeping in view all aspects of the matter. 
It would also be open for the Government to call for revised offers from the F 
Industrial Development Corporation of Orissa Ltd. (in short the 'IDCOL'), 
OSICL or from any other party. Appellant represents IDCOL as its agent. 
Background facts in a nutshell are as follows: 
Respondent no. I has been lifting copper cables scrap from the OSICL G 
since 2002. For disposal of 16,625.09 kg. of copper cables pertaining to Main 
Dam Division, Burla, proposal for tender was submitted by the Chief Engineer, 
Mechanical and off set price was fixed at Rs.160/- per kg. The IDCOL did not 
respond to the said tender. The OSICL offered a price of Rs.80/- per kg. But 
no other party responded to the tender invited by the Executive Engineer. 
Thereafter, the IDCOL made an offer of Rs.84/- per kg. of copper cable H 
626 
SUPREME COURT REPORTS (2006] SUPP. I S.C

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