( 1 ) THIS petition under Article 226 of the Constitution raises an important question about the eligibility for participation in tenders invited by a public body called Gujarat Water Supply and Sewerage Board constituted under the provisions of the Gujarat Water Supply and Sewerage Board Act qua supply of hand pumps, in so far as the eligibility has been confined to Gujarat based manufacturers.

( 2 ) THE facts leading to filing of the petition, as averred by the petitioner, are as under :-2. 1 petitioner No. 1 is a partnership firm engaged in the business of manufacturing hand pumps and its spare parts since last 20 years and has its manufacturing unit at Wazirpur, New Delhi. Petitioner No. 2 is a partner of petitioner No. 1-firm. For the sake of convenience, the petitioner firm shall be referred to as "the petitioners". The petitioners have been supplying hand pumps and parts thereof to the State of Gujarat, State of Maharashtra, State of Madhya Pradesh and State of Uttar Pradesh for the last about 20 years. 2. 2 on 25. 2. 1999, the Gujarat Water Supply and Sewerage Board (hereinafter referred to as "the Board" or "the respondent Board") placed orders with the petitioners for supply of 1800 hand pump sets and parts thereof worth Rs. 22 lacs and in compliance thereof, the petitioners supplied the hand pumps till 31. 3. 1999. In the meantime, on 1. 3. 1999 the respondent Board issued a public notice (Annexure "a") inviting commercial-cum-technical bids for fixing annual rate contract for supply of India Mark-II Deep Well hand pumps complete sets. Condition No. 1 in the tender papers stipulated as under :- "1. Eligibility for bidding : Only Gujarat Based manufacturers shall be eligible to compete in this Bid. " the last date for receiving the tenders from the bidders was fixed on 9. 3. 1999 which was extended till 12. 3. 1999 and 15. 3. 1999 was fixed as the date for opening the tenders. 2. 3 on 12. 3. 1999 the petitioner-firm, which is not having any manufacturing unit in Gujarat, filed the present petition challenging the aforesaid condition regarding eligibility on various grounds which are, inter alia, as under :- (i) There is no manufacturing units situated in the State of Gujarat which are having in-house Galvanizing and Electroplating facilities within their factory premises which is a heart of the hand pump and at present the Gujarat based industries are importing such facilities from the other States. Hence, the respondents have not applied their mind to the aforesaid aspect. (ii) Because of the impugned condition, the respondent board will have to pay much higher price (15% more) to the Small Scale Industries situate in the State of Gujarat as compared to the price payable to the industries situate outside the State of Gujarat. (iii) The petitioners have the fundamental right to do business throughout India and are entitled to participate and bid in any of the bids and the impugned condition is, therefore, violative of the petitioners fundamental right and the condition is also unreasonable. The impugned condition is, therefore, violative of the petitioners rights under Articles 14, 19, 298 and 300 of the Constitution.

( 3 ) ON 12. 3. 1999, the Court passed the following operative order after issuing notice and after recording reasons :-"in the facts and circumstances of this case, it is ordered that, in the meanwhile, if at all the respondents proceed to open the tenders in question on 15/03/1999, the same shall not be finalized and it will be indicated to the respective bidders also that even the opening of these tenders will be subject to the further orders which may be passed by this Court. "

( 4 ) IN response to the notice of admission of the petition, affidavit in reply dated 5. 4. 1999 came to be filed by Mr HM Patel, Executive Engineer (Mech.) on behalf of the respondent board. It is stated therein that the main function of the Board is to provide water supply in the State of Gujarat through diffe