TaxTMI 
TaxTMI 
TaxTMI 
2005 (4) TMI 593
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....r 10,340 sq. mtrs. of land reserved for educational purposes under the respondent-authority's scheme. Of the tenders submitted the three tenderers were the appellant, Jagriti Bal Mandir Society (hereafter referred to as 'Jagriti') and Crescent Public school (hereafter referred to as 'Crescent') who bid Rs. 261 per Sq.m., Rs. 201 per Sq.m. and Rs. 177.60 per Sq.m. respectively. The appellant, as its name suggests, is a construction company. However, one of its objects in its Memorandum of Association is claimed to be to construct and establish schools. Because the appellant did not have any experience of managing an educational institution its tender was rejected on 28th December 1993 and , the respondent authority ....
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....e appellant's memorandum showed that the appellant was constituted, inter- alia, for setting up schools, it could not be disqualified on this ground. The respondent No. 1 was accordingly required to decide the representations of the appellant and Jagriti afresh with a speaking order without being influenced by the earlier recommendations or earlier resolutions. Three appeals were preferred from this order before the Division Bench. One appeal was by Jagriti and two by Crescent. Jagriti's appeal was dismissed for default. One of Crescent's appeal was dismissed on the ground that the Single Judge had done substantial justice. The respondent No. 1 authority then reconsidered the matter again and by a resolution dated 18th Se....
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.... eligibility of the appellant to apply, it was contended that irrespective of the construction of the advertisement since Jagriti had established experience in the field of education it was better qualified than the appellant. It is submitted that the appellant could not be said to have been constituted for the purpose of education. The objects of Memorandum of Association merely list possible fields of diversification. It is also submitted that there was nothing in the advertisement from which it could be assumed that the tender would be given to the highest bidder. In fact, money was not the sole governing factor. In this connection, reference was made to Government Order dated 28th August 1986 from Madhya Pradesh Tender Advertisement Law....
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....to the attainment of the main objects, are specified in Clauses 3 to 28. Other objects are mentioned in Clauses 30 to 67. These include a wide variety of possible diversification of the appellants businesses. The last Clause reads: " 67. To establish and construct shopping markets, show rooms Nursing homes, schools, clubs houses, cinemas, office premises and other buildings for commercial purposes on lands seized and licence basis". We do not read this as in any way justifying the appellant's claim that it was constituted for educational purposes. To be 'constituted for' means the primary objective of the constitution. The primary objective of the appellant was certainly not to carry on educational activities. Besides the lan....
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....as therefore wrong in construing the advertisement dated 22nd September, 1993 in the manner he did and the Appellate Court erred in dismissing Crescent's appeal. In our opinion the appellant was not competent to participate in the tender. However, the appellant is entitled to succeed on the ground that the order of the Division Bench disposing of Crescent's appeal operated as res judicata to bind not only Crescent but also Jagriti and the appellant. It makes no difference that Jagriti was a co-respondent with the appellant. The principle of res judicata has been held to bind co- defendants if the relief given or refused by the earlier decision involved a determination of an issue between co-defendants (or co-respondents as the case....