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TMI Blog2004 (10) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... cision. No doubt a legal fiction has been created but the same cannot be given effect to in vacuum. It is to be applied having regard to the legislative intent and a restricted meaning is to be attributed thereto in a situation of this nature. A statute, it is also well-known, must be read in such a manner whereby it is made workable - Ut res magis valeat quam pereat. In any event, where a difficulty arises in a given situation to construe the statute upon applying a plain meaning thereof, it is well-settled, the rule of purpose construction should be applied. We have noticed hereinbefore that the functions of the Standing Committee must be exercised in public interest and, thus, cannot be said to be a formal ones. The members of the Standing Committee must apply their mind to the proposal of the Commissioner where for they must have before them the relevant records. A statutory authority, as is well known, when acts in terms of a statute, is bound by his action. He cannot supplement or supplant the reason later on by way of Affidavit. Furthermore, we find that apart from the fact that no such question had been raised by the Commissioner in his letter dated 9.5.2001, the reasons so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uested materials to the Standing Committee as per its resolution dated 26.4.2001. The appeal was allowed with no order as to costs. - N. Santosh Hegde S.B. Sinha, JJ. JUDGMENT S.B. SINHA, J : Leave granted. INTRODUCTION : The Appellant herein, Chairman of the Standing Committee of the Second Respondent-Municipal Corporation of City of Kalyan and Dombivali (hereinafter referred to as 'the Corporation') had filed a writ petition before the Bombay High Court praying for issuance of a writ of or in the nature of mandamus directing the respondents to ensure that whenever a proposal for grant of approval of the contract in terms of Section 73 of the Mumbai Provincial Municipal Corporation Act, 1949 (hereinafter referred to as 'the Act) is placed before the Standing Committee, the same should contain the tender forms and other documents submitted by the contractor as well as other documents, if any, containing the records of negotiations made by the Commissioner of the Corporation after the tenders are opened or placed before it. The said writ petition was dismissed by the High Court on an interpretation of clause (c) of Section 73 of the Act as also the locus of the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Committee resolves that, as per rules the administration should submit brief of the said case in office of the Secretary for the information of the Standing Committee. Similarly, in future briefs of each proposal from administration, which is placed before the Standing Committee should be submitted in Secretary's office along with profile from time to time for the perusal of the Standing Committee. Curiously the First Respondent did not respond thereto directly to the Standing Committee; but by a letter dated 9.5.2001 addressed to the Secretary of the Corporation posed a question as to under which rule it had asked for the said documents. It was contended : The administration has decided to ask the Government for advice. As soon as the advice is obtained from the Government a decision shall be taken in respect of the demand referred to above. The Government of Maharashtra by its letter dated 18.5.2001 quoting Rule 24 of the Rule Book of the Corporation, General Meetings, Standing Committee and Transport Committee Working Rules, opined : Therefore before approving any work or resolution the Standing Committee shall examine these documents. Therefore it is essential to make avail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned counsel would urge that the reason for the Standing Committee to ask the First Respondent to supply the said recommendations arose in view of the fact that the rates at which Bleaching Powder, Hydrated Lime and Liquid Chlorine were sought to be purchased were much above the market rates thereof. A statement to the said effect was made in paragraph 17 of the Rejoinder Affidavit filed by the Appellant herein but the same had not been traversed. The learned counsel, therefore, would argue that in the aforementioned situation, the High Court ought to have held that the proviso appended to clause (c) of Section 73 of the Act could not have been invoked. Mr. K. Radhakrishnan, the learned senior counsel appearing on behalf First Respondent, on the other hand, would submit that all the informations in terms of the form prescribed by the Standing Committee under Chapter V of the Schedule of the Act having been disclosed, it was not necessary to supply any further documents. The reasons for non-supply of such documents, according to the learned counsel, as contained in paragraph 4 of the Counter Affidavit are : That there are several other reason also for not submitting the papers, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, the writ petition was not maintainable. ANALYSIS OF THE STATUTORY PROVISIONS : A statute, as is well-known, must be construed in such a manner whereby the intent and object of the Act can be given effect to. A literal meaning should also be avoided if it results in absurdity. Indisputably, the First Respondent holds a statutory position. A discretion conferred on a statutory authority, it is well-settled, must be exercised in public interest and judiciously. There is no place of any whim or caprice in exercise of such discretionary power. [See Clariant International Ltd. Anr. Vs. Securities Exchange Board of India 2004 (7) SCALE 180]. Although the Commissioner is entitled to execute contracts on behalf of the Corporation but a statutory embargo is placed thereupon by reason of Clause (c) of Section 73 of the Act. A contract which may be entered into by the Commissioner requires prior approval of the Standing Committee. It is, thus, not a case where an action taken by a statutory authority requires approval which may be granted at a later stage. The approval of the Standing Committee, a bare perusal of Clause (c) would show, is required to be granted before any contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority is bound to comply with the said request unless there exist strong and cogent reasons for not doing so. It is relevant to notice that the First Respondent in his letter dated 9.5.2001 which incidentally was issued 14 days after the resolution adopted by the Standing Committee i.e. a day just prior to the expiry of 15 days did not raise any contention that the relevant records were not required nor did he say that the purpose of such approval, the informations disclosed in the prescribed form would subserve the purpose. He further did not say that for one reason or the other, which has now been contended in the Counter Affidavit, that such documents should not be disclosed. A statutory authority, as is well known, when acts in terms of a statute, is bound by his action. He cannot supplement or supplant the reason later on by way of Affidavit. Furthermore, we find that apart from the fact that no such question had been raised by the Commissioner in his letter dated 9.5.2001, the reasons sought to be assigned in the Counter Affidavit either are unjustified or irrelevant. A Statutory Committee should not be denied access to the documents to which it is entitled to, even accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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