ORDER MUHAMMAD JEHANGIR ARSHAD, J.- The petitioner through this Constitutional Petition has challenged auction of collection rights of Tehsil Municipal Administration (TMA), Chishtian proposed to be held on 20.6.2006, on the ground that same is being held in violation of Punjab Local Government (Auction of Collection Rights)
Rules, 2003. The grievance of the petitioner is that in order to accommodate the prospective bidders of their own choice neither the minimum reserve price for auction as required by Rule 5(v) of the said Rules has been mentioned in the public notice published in daily "Nawa-i-Waqt, Mulfen" in its issue of 6th June, 2006, nor the earnest money has been asked for in the said notice as required by Rule 16 of the relevant Rules.
Both the rules are reproduced below:-
5. Auction Procedure:- (1). For the contract of awarding of collection rights of an income the following auction procedure shall be adopted:-
(i) a public notice for conduct of an auction, in not less than two national daily newspapers, shall be published by the local government through the office of the Director General, Public Relations, Punjab at least seven days before the ' . Date of auction;
(ii) a copy of the notice shall be placed on the notice board of the office of the Local Government concerned and at other conspicuous places. Announcement of auction may also be made by beat of drum and other local means;
(iii) the notice shall contain the date and time of auction specifying the major terms and conditions for participating in the auction;
(iv) for each time the publication of auction notice shall be compulsory; and
(v) the public notice shall contain the minimum reserve price for auction and period of contract with rates and details."
"16. Earnest money:-(1) Every contractor shall deposit (words at least deleted) two percent of reserve price of respective income as earnest money in the funds of Local Government for taking part in auction ps contractor.
(2) The earnest money of successful bidders shall be retained by the Local Government administration as a security for successful completion of contract alongwith other dues prescribed in the agreement.
(3) The earnest money of unsuccessful bidders shall be returned immediately after completion of auction.
(4) The earnest money retained, as security shall be refunded to the contractor after successful completion of contract and production of a certificate from the head of Revenue Department of respective Local Government that nothing is due from the contractor and contract has been completed successfully."
A perusal of both the above-mentioned rules indicates that not only the public notice contain minimum reserve price for auction but 2% of reserve price as earnest money is also to be got deposited before holding of auction which shall be returned to unsuccessful bidder immediately on completion of auction and in case of successful bidder the same shall be retained as security and shall be refunded to the Contractor after successful completion of contract. The requirement of Rule 16 regarding earnest money can only be pressed into service when the same is published in the public notice but in the present case none of the above-mentioned two requirements have been incorporated in the public notice published in daily "Nawa-i-Waqt" Multan of its issue dated 6.6.2006 and appended with this petition as Annex.
2. When this writ petition came; up for limine hearing on 19.06.2006, Tehsil Municipal Officer (T.M.O), Chishtian was directed to appear in Court today and explain the position. Today, Muhammad Nadim Mumtaz, Tehsil Municipal Officer, Chishtian entered appearance and frankly conceded the above-mentioned two omissions in the public notice. When asked as to why disciplinary action be not recommended against him for not only violating the above- mentioned Rules but also not following the directions contained in the Circular dated 12th of April, 2006 issued by the Government of the Punjab, ^Local Government & Rural Development Department to.* this effect, the T.M.O. Immediately tendered unqualified apology with the assurance to remain careful in future and undertake to complete the fresh process of auction in question before 30.06.2006.
3. This writ petition is accordingly allowed and auction proceedings proposed to be held on 20.06.2006 in violation of Rules 5 (v) and I6 of the Punjab Local Government (Auction of Collection Rights) Rules, 2003, is declared to be illegal and of no consequence. Resultantly, Tehsil Municipal Administration, Chishtian would undertake fresh exercise for holding the said auction by giving public notice mentioning the reserve price, calling for deposit of 2% earnest money and also by strictly fulfilling other requirements of these Rules before 30.06.2006.
4. Before parting with this order, I would also like to take notice of the fact that due to inaction of the Tehsil Municipal Officer; Chishtian (Muhammad Nadim Mumtaz)' not only the entire exercise has been rendered infructuous resulting in financial loss to the T.M.A. Chishtian but also amount to wastage of precious time of this Court consumed in deciding this petition. I am therefore, satisfied that Muhammad Nadim Mumtaz, Tehsil Municipal Officer, Chishtian need not be left unpunished and in order to convey lesson to other persons acting in such like reckless manner, it. Is deemed to be a fit case where Muhammad Nadim Mumtaz, Tehsil Municipal Officer, Chistian be burdened with costs. He is accordingly, directed to pay Rs. 5000/- to the Tehsil Municipat Administration, Chishtian from his own pocket, as costs incurred by the T.M.A for publication of public notice in different newspapers. The receipt of deposit of costs be submitted to the Deputy Registrar (Judicial) of this Bench within ten days from today and the said Deputy Registrar shall append the receipt with this file and put up his report before the worthy Senior Judge of his lordship's notice, "It is further ordered that Muhammad Nadim Mumtaz, Tehsil Municipal Officer,, Chishtian shall also pay Rs.
5000/- as costs of this petition to the petitioner from his own pocket by depositing the same before the Additional Registrar of this Bench within ten days from today and on such deposit the said amount shall be paid to the petitioner under receipt after verification, In passing this order, I am fortified by the case "The Postmaster-General, Northern Punjab and (AJ&K), Rawalpindi versus Muhammad Bashir and 2 others,'' In case either of the amounts not paid/deposited, the' Additional Registrar shall place the matter before the Honorables Senior Judge for initiating contempt proceedings.