Reservation provisions for SC/ST in contracts are constitutionally valid and do not violate fundamental rights, reflecting affirmative action aimed at socio-economic upliftment under Article 46.

JUDGMENT :

SANDEEP V. MARNE, J.

1. Petitioners have filed the present Petition challenging the tender condition in the impugned tender notice issued by Respondent No.1-Bharat Petroleum Corporation Limited (BPCL) for award of work of road transportation of Bulk POL products by Top Loading Tank Lorries from Manmad Installation, Maharashtra to various locations within and outside the State. Petitioners have also challenged the guidelines issued by the Government of India on 18 August 1994 providing for reservation to Scheduled Castes (SC) and Scheduled Tribes (ST) categories in road transport contract by the public sector oil marketing companies.

2. Petitioners are engaged in the business of transport of petrol and petroleum products. BPCL is a public sector undertaking engaged in the business inter alia of marketing and selling petroleum products. Petitioners are the existing contractors with BPCL and were successful bidders in the previous tender process and are already providing transportation services of Bulk POL products by Top Loading Tank Lorries from Manmad installations, Maharashtra to various locations within and outside the State. The contract was awarded to them on 1 February 2018 and is in force, initially till 31 January 2023, which has subsequently been extended upto 31 March 2025.

3. On 9 August 2024 BPCL issued tender notice for road transportation of Bulk POL products (MS/HSD/Branded Fuels, etc.) by Top Loading Tank Lorries from BPCL, Manmad Installation Maharashtra to various locations (Depots, Retail Outlets/ direct customers, etc.) within and outside the State. The contract period indicated in the tender notice is for five years. Petitioners have challenged some of the tender conditions in the impugned tender notice, which seek to provide concession in respect of the security deposit as well as non-requirement of the actual ownership of the lorries by bidders belonging to SC and ST categories. Additionally, 15% reservation is provided for SC category and 7.5% reservation is provided for bidders belonging to ST category in the impugned tender, which condition is also challenged by the Petitioners. Petitioners have also challenged Clause 10(C) of the tender document providing for reservation to Micro and Small Enterprises (MSE). According to Petitioners, provision of such reservation eats up larger pie of the lorries leaving open not even 50% of the lorries to bidders not belonging to any reserved category. Accordingly, the present Petition is filed challenging the impugned tender notice.

4. Respondent No.1 -BPCL has appeared in the Petition and filed affidavit-in-reply inter alia contending that the provision for reservation in the tender is made in accordance with guidelines of Government of India vide circular dated 18 August 1994. Petitioners have accordingly amended the Petition by challenging the guidelines dated 18 August 1994.

5. We have heard Mr. Mirza, the learned senior advocate appearing for the Petitioners, who would submit that the provisions made by Respondent No.1-BPCL for reservation in the matter of allotment of contract to SC/ST bidders is constitutionally invalid. That provision for such reservation violates fundamental right of the Petitioners to do business under Article 19(1)(g) of the Constitution of India. That the reservation is sought to be justified merely on the basis