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2021 Supreme(Bom) 270

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
S.C.GUPTE, M. S.KARNIK, JJ.
Prithviraj Enterprises – Appellant
Versus
State of Maharashtra and anr. – Respondents
Writ Petition No.750, 1008, 1010, 1014, 1015, 1016, 1017, 1019, 1021, 11311 OF 2021
Decided on : 28-06-2021

Advocates:
Advocate Appeared:
For the Appellant :Mr.Anil V. Anturkar, Sr. Advocate a/w Mr.Mahesh Tarawade & Mr.Vilas Londe i/b Mr.Ranjit D. Shinde, Mr.S.M. Vaishnav, Mr. Nikhil Sakhardande, Sr. Advocate a/w. Mr. Hrishikesh S. Chitaley, Rohit P. Masurkar, Mr. Santosh S. Jadhavar, Mr. S.P. Shah a/w. Mr. Aditya N. Sikchi, Mr. V.D. Sapkal, Sr. Advocate, Mr. Sandip R. Sapkal and Ajit B. Chormal, Mr. R.N. Dhorde, Sr. Advocate a/w. Mr. Vikram R. Dhorde, Mr. Sanket S. Kulkarni, Mr. Sunip K. Sen a/w. Mr. Pandurang A. Pol, Mr. Ranjit S. Hatkar i/b. Pol Legal Juris
For the Respondents: Mr.A.A.Kumbhakoni - AG, a/w Mr.P.P. Kakade - GP, a/w Mr.Akshay Shinde - B Panel a/w Mr.A.P. Vanarase - AGP, Mr. S.S. Panchpor -AGP, Smt. G.R. Golatkar, Mr. Sudhir Tungar, Joint Secretary

Point of Law: Government contract - Tender Process - In event of tender being issued in favour of successful bidder and upon issuance of work order, if transport contractor or any other person, contravenes provisions of Mathadi Act, it is always open for aggrieved to seek their remedies against such infractions.

Headnote:

Constitution of India, 1950 - Article 226 - National Food Security Act, 2013 - Section 3 - Essential Commodities Act, 1955 - Government Resolution - Render process Existing bidders - contracts of transportation of food and other essential commodities - Whether it excluded contractors who had carried out transportation work only in first phase of two-phase transportation work, without undertaking transportation work related to second phase of scheme, if they otherwise satisfied all other criteria of eligibility - Impugned GR has been issued by State Government for purpose of giving contracts of transportation of food and other essential commodities from Food Corporation of India (FCI) Godown to Public Distribution Shops (PDS) - Contention of Petitioners that the terms and conditions and criteria prescribed by GR have no nexus with the purpose for which tender is issued, as a result of which, though Petitioners are very much competent and otherwise equipped to execute the works under the GR due to tailor-made conditions set out in GR to favour existing bidders, Petitioners are arbitrarily excluded from participating in tender process.

Finding of the Court:

No doubt some degree of inconvenience would be suffered by the Mathadi workers as a result of reduction of loading/unloading work at State storage facilities. However, it cannot be ignored that the rights of the Mathadi workers have to be balanced with object for which transportation of foodgrains from FCI godowns to Fair Price Shops is to be made directly. For reasons enumerated by State Government, reduction of State Government storage facility, if any, cannot be said to be contrary to any provision of Mathadi Act. State Government is duty bound to regulate the employment of Mathadi workers in a scheduled employment. The G.R. does not exclude the applicability of the Mathadi Act. In our opinion, the G.R., as it stands, does not contravene any provisions of Mathadi Act - State Government has devised a mechanism for transportation of foodgrains in terms of Clause 11 of Central Government order under Act, 1955 for reasons stated hereinbefore. Object of this new mechanism is transportation of goods from Corporation godown to the Fair Price Shops directly as far as possible. Such policy cannot in any manner be said to be contrary to provisions of Mathadi Act - Decision taken by State Government is in realm of policy making. The decision cannot be said to be arbitrary or contrary to the provisions of National Food Security Act or Mathadi Act

Result: Petition dismissed

JUDGMENT :

M.S. KARNIK, J.

Rule. Rule is made returnable forthwith. Heard finally with the consent of the parties.

2. The issues involved in these Petitions are common and therefore disposed of by a common judgment. However, Writ Petition Stamp No.11311 and Writ Petition No.1010 of 2021, though they challenge the same GR, considering the nature of that challenge, are dealt with separately.

3. These Petitions under Article 226 of the Constitution of India take exception to the Government Resolution bearing No.Contract/1120/Pra. Kra.106/Na. Pu. 16-A Food and Civil Supplies and the Consumer Protection Department, Government of Maharashtra dated January 15, 2021 ('GR dated January 15, 2021' for short). In the alternative, the Petitioners have challenged various clauses in the said GR dated January 15, 2021. The details of the relevant clauses under challenge are set out in the later part of this Judgment.

THE CHALLENGE IN BRIEF :

4. The impugned GR dated January 15, 2021 has been issued by the State Government for the purpose of giving contracts of transportation of food and other essential commodities from the Food Corporation of India (FCI) Godown to Public Distribution Shops (PDS). It is the contention of the Petitioners that the terms and conditions and criteria prescribed by the GR dated January 15, 2021 have no nexus with the purpose for which the tender is issued, as a result of which, though the Petitioners are very much competent and otherwise equipped to execute the works under the GR dated January 15, 2021, due to tailor-made conditions set out in the GR to favour existing bidders, the Petitioners are arbitrarily excluded from participating in the tender process.

5. For the purpose of convenience we refer to the facts in Writ Petition No. 750 of 2021.

6. The State of Maharashtra had from time to time issued various GRs for the purpose introducing transparency and for the purpose of ensuring that the beneficiaries receive food and civil supplies on regular basis and in prescribed time. Towards that end, initially, GR dated February 23, 2012 was issued. As per this GR, from the base depot of the FCI upto the ration shop in the districts, transportation was to be done under one contract at the cost of the Government, for maintaining the food and civil supplies.

7. Thereafter, vide GRs dated November 26, 2012 and April 20, 2017, in all districts in the State of Maharashtra, food and civil supplies were to be transported, in two stages, that is to say, first from FCI depot to district collection centres or Government godown and from there to individual fair price shops, and in respect of circle areas of Mumbai and Thane and so far as municipal corporation areas of Pune, Nashik, Nagpur, Aurangabad and Solapur are concerned, directly from FCI depot to fair price shops. The guidelines for such transportations were prescribed by these two GRs dated November 26, 2012 and April 20, 2017.

8. Thereafter, GR dated November 1, 2018 was issued for the purpose of bringing co-ordination in the handling of food and civil supplies department at the level of the Government godown and for the purpose of making transportation of food and civil supplies as per 'PDS' managed by the Government of Maharashtra and for increasing the efficiency thereof. Towards that end, it was decided that combined tenders would be issued and that was so provided by this GR dated November 1, 2018.

9. The issuance of GR dated November 1, 2018 resulted in hamal contractors raising a grievance that the said GR would adversely affect their work. Various Writ Petitions came to be filed challenging the GR dated November 1, 2018. Consequently, the State of Maharashtra took a decision vide GR dated September 20, 2019 to withdraw and repeal the earlier GR dated November 1, 2018. Thereupon, the impugned GR dated January 15, 2021 came to be issued. It is the Petitioners’ case that this GR has adversely affected the Petitioners, hence these Petitions.

SUBMISSIONS MADE ON BEHALF OF THE PE

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