( 1 ) THE present petition is directed against the decision of respondents 1, 2 and 3 in not opening the price bid of the petitioner and to declare respondents 4 and 5 as lowest bidders for construction of 1088 residential flats in three packages at Gurgaon, Haryana.

( 2 ) THE facts as stated in the writ petition are that SA Builders Ltd. was a private limited company incorporated in 1978 under the Indian Companies Act, 1956 and has now been re-named as SAB Industries Ltd. The turnover in the last five years has been more than Rs. 15 crores per annum. The petitioner has successfully executed a number of projects all over India including the Housing Scheme for Gas Authority of India at Guna, 874 Bed Hospital for the Indian Army at a cost of Rs. 30 crores, B. R. Ambedkar University at Hyderabad, Housing Project for Ministry of Defence at Port Blair at a cost of Rs. 700 lakhs, Research Centre for DRDO under Ministry of Defence at a cost of Rs. 12. 5 crores. Main Plant Building along with 200 houses at a cost of Rs. 25 crores for Indian Acrylic Limited. All these projects have been completed to the satisfaction of the owner without resort to any litigation or arbitration proceedings.

( 3 ) ON May 21, 1996 a Notice Inviting Tenders was published in the leading newspapers on behalf of respondent No. 1 for construction of 1088 residential flats in three packages complete in all respects at Sector 56, Gurgaon,haryana. This was a beneficial project, it is alleged, for the Central Government employees. Respondent No. 1 is a State within the meaning of Article 12 of the Constitution of India and is amenable to the writ jurisdiction of this Court.

( 4 ) THREE separate packages for complete building works including expert services were as under:

(I) Package-I:309 Type B + 202 Type A and 12 Type AA.

(II) Package-II:387 Type C

(III) Package-III: 178 DX along with 2 Nos. Community Centre.

( 5 ) THE advertisement invited sealed lump sum/item rate tenders for the construction of 1088 flats under a two envelope system from reputed eligible building contractors. The first envelope was to contain eligibility criteria and techno commercial bid and the second envelope was to contain the price bid. The eligibility criteria prescribed in the NIT (Notice Inviting Tenders) was that the contractor should be registered with CPWD, MES Railways, State PWD in unlimited class or the Contractor should have executed a housing project of at least 300 dwelling units during the last five years. The contracting company should not have incurred any loss during the last five years and should also have not brought forward losses. Copy of the advertisement published in the newspapers is filed as Annexure b to the writ petition which reads as follows: "central Government Employees Welfare Housing Organisation (An Autonomous Body of the Govt. of India) Notice inviting tender Construction of 1088 residential flats in three packages complete in all respects at Sector 56, Gurgaon, Haryana. Sealed lump sum/item rate tenders are invited for the above mentioned work in 2 Envelope System (Envelope-1 should contain eligibility criteria and techno Commercial Bid only and Envelope-2 the price Bid) from reputed eligible Building Contractors. Scope of work; Three separate packages for complete building works including external services as under: 706 Package-1 :309 Type B+202 Type A and 12 Type AA Package-2 : 387 Type C Package-3 : 178 DX along with 2 Nos. Community Centre Eligibility criteria Contractors registered with CPWD, MES Railways, Stale PWD in unlimited class or Contractors who have executed a housing project of at least 300 dwelling units or a project costing Rs. 5 crores during last 5 years. The company should not have incurred loss in any of the last 5 years and also with no brought forward losses. Earnest money deposit Earnest Money of Rs. 2 (two) lacs only by way of Bank Guarantee/draft drawn on a scheduled Bank, in the stipulated format in favour of CE