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P.S. Sundar

`The Tantea CMD has got every right to allot and re-allot the teas of the corporation factories from time to time to any broking company without assigning any reason.'

COONOOR, March 16

THE Madras High Court has dismissed the petitions filed by two tea-broking companies challenging a notification issued by the Tamil Nadu Tea Plantation Corporation (Tantea), a State Government undertaking, on allocating its produce to selective brokers for sales through the public auctions.

Mr Justice Sadasivam on Friday dismissed the petitions filed by Messrs TTBL Tea and Technologies Ltd and Forbes, Ewart and Figgis (P) Ltd , saying the petitions, against Tantea's order on November 28 last year, lacked merit.

"I am unable to accept any one of the contentions raised by the petitioners. There is no merit in both the writ petitions,'' he said, but no cost was ordered.

The judge said even in 1996, Tantea had cancelled its allotment to sell its Tiger Hill Teas to TTBL, and allotted it to another broker, but the company did not challenge it. This clearly established that it accepted the order, he said.

Referring to the contention that the Tantea had violated the norms of the transparency in Tamil Nadu Tenders Act, 1998, the judge said the Act was not applicable to matters relating to appointment of brokers, as it was not done by invitation of tenders. "It cannot be done by invitation of tenders as the remuneration is fixed at one per cent by the Tea Board. No Broker can under quote the said commission and, therefore, calling for tenders or accepting the lowest tender will be against the law, the Tea Act and the various rules framed under the Tea Act," he said.

"I am satisfied that the Tantea Chairman-cum-Managing Director cannot call for tenders and hold that the Transparency Act is inapplicable,'' the judge said. He also said he was satisfied that the two petitioner companies had not been blacklisted as alleged.

"The Tantea CMD has got every right to allot and re-allot the teas of the corporation factories from time to time to any broking company without assigning any reason. For the quantity of tea which the brokers have sold, they are entitled to brokerage commission only and, therefore, there is no question of issuance of any notice, conducting any enquiry or affording an opportunity before passing the impugned order'', Mr Justice Sadasivam ruled.

He also said since the petitioner broking companies were dealing with the teas of various manufacturing companies, there was no damage caused to them.

Referring to the petitioners' contention that Tantea had acted under political pressure and for extraneous considerations, the judge said "I am satisfied that the allotment of the teas made to the three new broker companies is perfectly in order and there is no mala fide intention.''

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