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2017 Supreme(Cal) 798

IN THE HIGH COURT OF CALCUTTA
JYOTIRMAY BHATTACHARYA, ARIJIT BANERJEE, JJ.
Deb & Company & Ors. – Appellants
Versus
Union of India & Ors. – Respondents
M.A.T. 2084 of 2016
Decided on : 07-11-2017

Advocates:
Advocate Appeared:
For the Appellants : Mr. Tapas Datta.
For the Respondent: Mr. Sanjit Kumar Ghosh, Mr. Kausik Chanda, Mr. Tarun Jyoti Tiwari.

The court upheld the eligibility criteria introduced in the Notice Inviting Tender, emphasizing that it was for the benefit and betterment of the workers/employees working under the contractor.

Headnote:

EPF Code - Eligibility Criteria in Tender Process - Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 - [Employees’ Provident Fund & Miscellaneous Provisions Act, 1952] - [Summary of the Acts and Sections discussed: The court discussed the eligibility criteria introduced in the Notice Inviting Tender (NIT) in pursuance of the circular and/or notification issued by the Director (Contract) for NC. The appellants argued that the eligibility criteria was contrary to the scheme of the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952, citing relevant case law. The court upheld the eligibility criteria, stating that it was introduced for the benefit and betterment of the workers/employees working under the contractor. The court declined to interfere with the order impugned, endorsing the view of the learned single judge and finding no merit in the appeal.]

Fact of the Case:

Twenty-seven writ petitioners engaged in maintenance/ EPR/ completion and finishing services challenged a notification and/or circular which made submission of a scanned copy of permanent provident fund registration number compulsory for participating in the tender process. Some petitioners obtained the EPF Code and were successful in the tender process, while others were unsuccessful.

Finding of the Court:

The court upheld the eligibility criteria introduced in the Notice Inviting Tender, stating that it was for the benefit and betterment of the workers/employees working under the contractor. The court declined to interfere with the order impugned, finding no merit in the appeal.

Issues: The primary issue was the legality and correctness of the eligibility criteria introduced in the Notice Inviting Tender, which made submission of a scanned copy of permanent provident fund registration number compulsory for participating in the tender process.

Ratio Decidendi: The court held that the eligibility criteria was not against the interest of the workers/employees working under the contractor and was introduced for their benefit and betterment. The court declined to interfere with the order impugned, finding no merit in the appeal.

Final Decision: The appeal was declined, and the court found no merit in the appeal.

JUDGMENT :

Jyotirmay Bhattacharya, J.

1. Twenty-seven writ petitioners filed a writ petition on common cause. They are engaged in carrying on business of maintenance/ EPR/ completion and finishing services such as glazing, plastering, flooring, wall tailing, installation, electrical fittings, etc. and the number of workers in their establishments is below

20. They engaged sub-contractors for labour for execution of the said job. They provide service to the Headquarter, Commercial Works Engineers Military Engineer Services in Kolkata and other branches.

2. Pursuant to a notification and/or circular issued by the Director (Contractor) for Engineer-in-Chief on 6th November, 2015, an eligibility clause was inserted by the concerned authority in the notice inviting tender whereby submission of a scanned copy of permanent provident fund registration number was made compulsory for participating in the tender process.

3. The writ petitioners filed a writ petition challenging the notification and/or circular which issued by the Director of Contract for Engineer-in-Chief on 6th November, 2015. The text of the said notification and/or the circulation is set out hereunder:

“During evaluation of ‘T’ bid (Cover-1) of e-tendering, uploading of copy of Provident Fund Code number in addition to other documents required shall be mandatory. It should be clearly mentioned in NIT that contractor not in possession of this number shall be disqualified in ‘T’ bid evaluation and his finance bid shall not be opened.”

4. Fact remains that though the writ petitioners did not have EPF Code before filing the writ petition but during the pendency of the writ petition they applied for the EPF Code and after obtaining the EPF Code they participated in the tender process on submission of their scanned copy of permanent Provident Fund Registration Number. Some of the writ petitioners were ultimately found successful in the tender process and contracts were awarded to them. Some of them were unsuccessful. As such contracts were not awarded to them.

5. The learned single judge of this court rejected the writ petition by holding that the condition for obtaining EPF Code imposed in the Notice Inviting Tender as an eligibility criteria for participating in the tender process is not against the interest of the workers/employees working under the contractor. It was held that such condition was introduced in the Notice Inviting Tender for the benefit and betterment of the workers/employees who are working under the contractor. It was further held that since the condition is for Social Security of the workmen, the petitioners could not have any grievances. Holding as such, the writ petition was dismissed.

6. The legality and/or the correctness of the said order is under challenge in this mandamus appeal before us.

7. The learned counsel appearing for the writ petitioners-appellants submits that under the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952 the principal liability to deposit the employees’ contribution is upon the ultimate employer and the primary liability to pay such contribution is not imposed on the contractor. He further submits that since the writ petitioners employed less than twenty labours under them, they are not even liable either to deduct employees contribution under the said Act or to deposit the same with the Provident Fund Authority.

8. He by relying upon the decisions of the Hon’ble Supreme Court in the case of Bharat Heavy Electricals Ltd. –vs-Employees’ State Insurance Corporation, reported in (2008) 3 SCC 247 and Orissa Cement Ltd. & Ors. – vs- Union of India & Ors., reported in 1962 Supp. (3) SCR 837 tried to impress upon us that the eligibility criteria which was introduced in the NIT in pursuance of the circular and/or notification issued by the Director (Contract) for NC is contrary to the scheme of the Employees’ Provident Fund & Miscellaneous Provisions Act, 1952. He thus invites us to interfere with the order impugned.

9. Here is







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