IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
Subba Reddy Satti, J.
Arts And Crafts Society - Appellant
Versus
State of Andhra Pradesh - Respondent
Writ Petition No. 27582 of 2023
Decided On : 19-10-2023
e-Tender - Religious Discrimination - Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and Other Right (Other than Agricultural Lands) Leases and Licenses Rules, 2003, Rule 4(2)(K), Rule 18, Act 30 of 1987, Ss. 19, 20, 153 - The court discussed the validity of the e-Tender Notification incorporating a condition prohibiting non-Hindu religious persons from participating in the tender, based on the principles laid down in various judgments and the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and Other Right (Other than Agricultural Lands) Leases and Licenses Rules, 2003, and Act 30 of 1987.
Fact of the Case:
The writ petition was filed to challenge the e-Tender Notification prohibiting non-Hindu religious persons from participating in the tender. The petitioner argued that the condition in the tender was illegal and unsustainable in view of the interim order passed by the Apex Court.
Finding of the Court:
The court found that the stay of operation of the order in W.P.No.40252 of 2015 in SLP (Civil) No.1989 of 2020 did not wipe out the dicta laid down in the judgment. The Division Bench of the court had upheld the validity of the clause restraining non-Hindu religious persons from participating in the tender, and the ratio in the said judgment bound the court. Therefore, the writ petition lacked merit and was dismissed.
Issues: The main issue was whether the stay of operation of the order by the appellate court would wipe out the dicta laid down in the judgment.
Ratio Decidendi: The court held that the stay of operation of the order did not wipe out the dicta laid down in the judgment, and the order passed by the Division Bench upholding the validity of the clause restraining non-Hindu religious persons from participating in the tender bound the court.
Final Decision: The writ petition was dismissed, and no order as to costs was given. Pending miscellaneous petitions, if any, stood dismissed.
Key Points: - The stay of operation of a High Court order does not wipe out the dicta or ratio laid down in the judgment; the ratio remains binding. (!) (!) - The Division Bench’s ruling upholding the validity of the clause restraining non-Hindu religious persons from participating in the tender binds the court despite the stay, and the writ petition lacks merit. (!) - Interim orders and stays do not extinguish precedents; they merely suspend execution, and the ratio of the judgment continues to be guiding or binding unless reconsidered. (!) (!) (!) - The case involves an e-Tender provision that prohibits non-Hindu religious persons from participating, and the High Court upheld this clause based on Rule 4(2)(K) and related constitutional considerations. (!) (!) (!) - The Apex Court had stayed the operation of the High Court’s judgment, but the High Court held that such stay does not wipe out the dicta and the Division Bench’s rationale remains binding. (!) (!)
JUDGMENT
SUBBA REDDY SATTI, J. - The above writ petition is filed to declare the e-Tender Notification in FILE/NIT No.G2/3772/2023, dtd. 12/10/2023 issued by the Executive Officer of 2nd respondent for procurement of pure cotton Khanduvas and Dhoties for the period from 1/11/2023 to 31/10/2024, incorporating condition No.2 prohibiting non-Hindu religious persons from participating in e-Tender, as illegal and arbitrary.
2. Heard Sri Vidya Sagar, learned counsel for the petitioner, learned Government Pleader for Endowments appearing for respondent Nos. 1 and 3 and Sri G.Ramana Rao, learned Standing Counsel appearing for respondent No.2.
3. Government issued G.O.Ms.No.426 Revenue (Endowments-I) Department, dtd. 9/11/2015 making amendments to Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and Other Right (Other than Agricultural Lands) Leases and Licenses Rules, 2003. Rule No.4 of the original Rules was substituted. Rule 4(2)(K) of the substituted Rules reads as under:
"(K) No person professing other than Hinduism as his religion is entitled to obtain lease or license either through tender - cum-public auction or otherwise."
4. Challenging Rule 4(2)(K) and Rule 18, W.P.No.40252 of 2015 and Batch were filed. The Division Bench of this Court by common order dtd. 1/11/2019 dismissed those writ petitions. The operative portion of the order reads as follows: "Considering the principles laid down in the above judgments including the judgments of Apex Court in M.P.Gopalakrishnan Nair v. State of Kerala (AIR 2005 SC 3053) where non-Hindus are debarred for being elected as member of Trust Board and the Madras High Court judgment in Force 1 Guarding Services Pvt.Ltd. v. The State of Tamilnadu (W.P.No.20024 of 2011), wherein non-Hindus debarred from participating in tender process for providing security guards to the temple.
Similarly, Act 30 of 1987 itself provides certain provisions debarring non-Hindus for being appointed as members of Trust Board, employees or Commissioner etc., under Ss. 19 and 20 of the Act. When Ss. 153 of the Act 30 of 1987 permits the Government to frame rules and regulations with regard to any matters covered by the Act, the rules framed by the Government, which are impugned in the writ petition debarring non-Hindus from participating in auction is not violative of Articles 14, 15, 26 and 26 of the Constitution of India.
Based on the principles laid down by the Apex Court in M.P.Gopalakrishnanan Nair v. State of Kerala (referred above) and the Madras High Court judgment in "Force 1 Guarding Services Pvt. Ltd. v. the State of Tamilnadu (W.P.No.20024 of 2011), Muraleedharan Nair v. State of Kerala (1990 (1) KLT 874) and Narayanan Namboodiri v. State of Kerala (AIR 2005 SC 3053), we hold that the amended rules are not violative of any fundamental right guaranteed under the Constitution of India or any statutory right and the amended rules are valid. Consequently, the writ petition is liable to be dismissed."
5. Aggrieved by the order, writ petitioner in W.P.No.40252 of 2015 filed SLP (C) 1989 of 2020. The Hon'ble Apex Court on 27/1/2020 passed the following order:
"Issue notice, returnable in six weeks. In the meantime, the operation of the impugned judgment and order of the High Court of Andhra Pradesh dtd. 27/9/2019 in W.P.No.40252 of 2015, shall remain stayed."
6. Be it as it may, the Executive Officer of the 2nd respondent issued e-Tender for procurement of pure cotton Kanduvas and Dhothies. As per the Tender schedule, downloading of bid documents starts from 12/10/2023 at 10.00 AM and ends by 19/10/2023 at 1.00 PM. Last date and time for receipt is 19/10/2023 at 3.00 PM. Opening date and time of technical bid is on 19/10/2023 at 4.00 PM and price bid opening is on 19/10/2023 at 4.30 PM. Second condition in the Tender is that non-Hindu religion persons are not permitted to participate in the Tender.
7. Learned counsel for the petitioner would contend that in view of t
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