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1994 Supreme(Del) 75

High Court Of Delhi
SUPER ENGINIRS - Appellant
Versus
NEW DELHI MUNICIPAL COMMITTEE - Respondent
Civil 2919 of 1992
Decided On : 02/03/1994

Advocates Appeared:
ARUN JAITLEY, AYSHA KHATRI, B.B.GUPTA

The requirement of a test certificate from CPRI or Government Recognized test house is to ensure the quality of the goods. A test certificate in the name of an associate of the petitioner is sufficient to meet this requirement.

Headnote:

TENDER - ELIGIBILITY CRITERIA - INTERPRETATION - REQUIREMENT OF TEST CERTIFICATE FROM CPRI OR GOVERNMENT RECOGNIZED TEST HOUSE - PURPOSE IS TO ENSURE QUALITY OF GOODS - TEST CERTIFICATE IN NAME OF ASSOCIATE OF PETITIONER IS SUFFICIENT - BAN ORDER WITHOUT OPPORTUNITY TO REPRESENTATION - VIOLATIVE OF PRINCIPLES OF NATURAL JUSTICE.

Fact of the Case:

Petitioners challenged the ban order imposed by the respondent on the second petitioner and the respondent's refusal to provide tender documents to the first petitioner for the purchase of Low Tension Air Circuit Breaker panels. The respondent argued that the first petitioner did not meet the eligibility criteria as it did not have a test certificate from CPRI in its own name.

Finding of the Court:

The court held that the requirement of a test certificate from CPRI or Government Recognized test house is to ensure the quality of the goods. The court found that the first petitioner's associate had the requisite test certification and that the LT-ACBs manufactured by Larsen and Toubro Ltd. and the panels fabricated by the associate of the first petitioner had the necessary certification from the CPRI. Therefore, the court held that the first petitioner was fully qualified for receiving the tender documents from the respondent.

Issues: 1. Whether the first petitioner met the eligibility criteria for participating in the tender. 2. Whether the ban order imposed on the second petitioner without providing an opportunity to be heard was violative of the principles of natural justice.

Ratio Decidendi: The court held that the purpose of the requirement of a test certificate from CPRI or Government Recognized test house is to ensure the quality of the goods. The court found that the first petitioner's associate had the requisite test certification and that the LT-ACBs manufactured by Larsen and Toubro Ltd. and the panels fabricated by the associate of the first petitioner had the necessary certification from the CPRI. Therefore, the court held that the first petitioner was fully qualified for receiving the tender documents from the respondent. The court also held that the ban order imposed on the second petitioner without providing an opportunity to be heard was violative of the principles of natural justice.

Final Decision: The court quashed the ban order dated July 14, 1992 and directed the respondent to issue the tender documents to the first petitioner.

Mr. Anil Dev Singh, J.

( 1 ) BY this writ petition the petitioners challenge the order of the respondent-New Delhi Municipal Committee dated July 14, 1992 whereby the respondent has imposed a ban on transacting any business with the second petitioner and the action of the respondent in not furnishing the tender documents to the first petitioner in respect of tenders floated on July 15, 1992 for the purchase of Low Tension Air Circuit Breaker panels.

( 2 ) THE first petitioner M/s. Super Engineering is a partnership firm and an authorised stockist of Low Tension Air Circuit Breaker (for short lt-ACB ) and other equipment manufactured by M/s. Larsen and Toubro Ltd. The second petitioner, a proprietary concern of the third petitioner, undertakes fabrication of electrical panel Boards and is claimed to be an associate of the first petitioner. The second petitioner had been dealing with the respondent in the past but a ban order dated July 14, 1992 was slapped by the respondent on the former, stopping all business with it. By a notice dated July 15, 1992 the respondent invited tenders for purchase of LT-ACB panels. The notice also laid down the eligibility criteria for participating in the tender. The eligibility criteria reads as under:

"only manufacturers of LT-ACB/their authorised stockist having adequate fabricating and testing arrangement of their own or with their associates with the recommendation letter from the manufacturers of ACB for which they are quoting in this tender are eligible to participate in the tender. Further they should have complete set of test certificate on the breaker and their panel from CPRI/govt. / Recognised test house as per relevant ISS. The request for issue of tender documents shall be entertained on furnishing the documentary proof from the manufacturers otherwise tender document shall not be issued. "according to the above, a party will be entitled to participate in the tender only if the following conditions are fulfilled:

(1) The party should be a manufacturer of LT-ACB; or (2) The party should be an authorised stockist of the manufacturer for latter s product, namely, LT-ACB, provided: (a) it has adequate fabricating and testing arrangements of its own or with its associates; (b) it has a letter of recommendation from the concerned manufacturer; and (e) it has the test certificate for the breaker and panel from Central Power Research Institute (forshortcpri)/undertaking/recognised test house as per relevant ISS.

( 3 ) IT appears that the second petitioner,the proprietary concern of the third petitioner, did not apply for the tender because of the ban order and also because it was not otherwise qualified to participate in the tender being only a fabricator. The first petitioner, however, considering itself to be fully eligible to participate in the tender applied to the respondent by its letter dated July 20, 1992 for issue of the tender documents. The first petitioner not getting any favourable response from the respondent followed up his application by reminders dated July 24,1992, August 4, 1992 and August 5, 1992. But this was also of no avail. Failing to secure the tender documents and because of the aforesaid ban order the petitioners filed the present writ petition on August 20,1992. In response the respondent in the counter-affidavit has taken the plea that the first petitioner does not fulfill the eligibility criteria and therefore the tender documents were not furnished to it. The precise stand in the counter-affidavit is that the first petitioner does not have test certificate of the equipment in its own name. It is, however, not denied that the associate of the first petitioner namely, Jain Motor Garage has the test certificate for the equipment in question from CPRI.

( 4 ) LEARNED Counsel for the petitioners submits that according to the eligibility criteria it is not necessary for the first petitioner to have the test certificate of the equipment from CPRI in its own name when it




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