JUDGMENT:

Dr. ARIJIT PASAYAT, J.

Leave granted in SLP (C) No. 24219/2003.

The point involved in these cases essentially is the purchase preference given to Public Sector Enterprises (in short the PSEs). The petitioners have made a grievance that

the key players in the market are petitioners-Caterpillar and Bharat Earth Movers Ltd. Most important purchaser for all these are coal fields, for example Western Coalfield and its subsidiaries-Coal India Ltd. They are invariably the purchasers in respect of earth moving machines. Prior to 1992 price preference was given to PSEs. Post 1992 purchase preference was given and the lowest and the second lowest bidders were being described as L-1 and L-2. Purchase orders were issued by the Coal India Ltd., broadly in the ratio of

60/40 and the L-2 was required to match the L-1 price. The language used earlier was "may" as indicated by Circular dated 13.1.1992. The purchase preference policy was extended by office memorandum dated 15.3.1995 for a further period of two years. It was further extended till 21.3.2000 by office memorandum dated 31.10.1997, subject to purchase being in excess of Rs.5 crores. By office memorandum dated 14.9.2000, the policy