IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
ARAVIND KUMAR, ASHUTOSH SHASTRI, JJ.
Shimnit India Pvt. Ltd. - Petitioner
Versus
State of Gujarat - Respondent
R/Special Civil Application Nos. 17445, 17448 of 2022
Decided On : 23-01-2023
Companies Act, 2013 - Motor Vehicles Act, 1988 - Section 41(6) - Central Motor Vehicle Rules, 1989 - Rule 50, 51, 109(3) - Constitution of India, 1950 - Article 226, 14, 19 - Grant of tender - Lost a contract bid - Interim injunction - Challenged certain clauses of tender document floated by respondent authority – Held, If Court finds that there is total arbitrariness or that tender has been granted in a malafide manner, still Court should refrain from interfering in grant of tender but instead relegate parties to seek damages for wrongful exclusion rather than to injunct execution of contract - Injunction or interference in tender leads to additional costs on State and is also against public interest - Therefore, State and its citizens suffer twice, firstly by paying escalation costs and secondly, by being deprived of infrastructure for which present-day Governments are expected to work - Grant of interim injunction by learned Single Bench of High Court has helped no-one except a contractor who lost a contract bid and has only caused loss to State with no corresponding gain to anyone - From aforesaid observations in context of fact situation prevailing on record and in consideration of contentions raised by learned advocates appearing for petitioners, Court is of clear opinion that no case is made out by petitioners calling for any interference - Petitions dismissed.
JUDGMENT :
Ashutosh Shastri, J.
1. By way of these two petitions, petitioners have challenged certain clauses of tender document floated by respondent authority in the month of August, 2022. Since the nature of challenge and the issue involved is common in nature and on request made by learned advocates appearing for the respective sides, they are taken up conjointly and for the sake of convenience since the controversy is identical, Special Civil Application No. 17445 of 2022 is treated as the lead matter.
2. Petitioners in this lead matter i.e. Special Civil Application No. 17445 of 2022 we notice that petitioner No.1 is a Company incorporated and registered under the provisions of the Companies Act, 2013 and petitioner No.2 is an authorized Representative and Manager of Company. Under the provisions of Motor Vehicles Act, 1988 all motor vehicles are required to be registered under the Act and motor vehicle is given registration mark by registering authority in view of Section 41(6) of the Act and the said registration mark is required to be displayed on the body of vehicle in view of the guidelines framed under Rule 50 read with 51 of the Central Motor Vehicle Rules. The Government of India has amended Rule 50 of the Central Motor Vehicle Rules, 1989 (hereinafter referred to as "CMV Rules") and notified vide Gazette Notification No.221(E) dated 28.03.2001 (with effect from 28.09.2001) to introduce High Security Registration Plate (HSRP) system in India, for all types of vehicles and according to petitioners, in furtherance of powers under Section 109(3) of the CMV Rules, the Central Government was also pleased to issue the order named as the Motor Vehicles (New High Security Registration Plate) Order, 2001 ("HSRP Order" hereinafter). The amended Rule 50 of the CMV Rules and the HSRP Order, 2001 constitutes the scheme named as HSRP Scheme. This scheme is prevailing right from the year, 2001 in various State Governments and all efforts were made to implement HSRP Scheme. The Hon'ble Apex Court in PIL No. W.P.(C) 510 of 2005 in the case of M.S. Bitta Versus Union of India and Ors. was pleased to direct the State Governments to implement the scheme in its true spirit and various orders have been passed which would indicate the significance of HSRP Scheme and its implementation. The Hon'ble Apex Court has also indicated in the judgment, how care has to be taken in respect of tender process of HSRP and how it has to be implemented across the country.
3. It is the case of the petitioners that in furtherance of this the Ministry of Roads Transport and Highway, Government of India had issued guidelines from time to time to the State Governments to introduce High Security Registration Plate for all types of vehicles in the States. In response to it, the State of Gujarat is also implementing HSRP Scheme for both new and old vehicles right from the year 2012. In order to streamline, the process of implementation of HSRP, the Ministry of Road Transport and Highways issued notification G.S.R. 1162(E) dated 04.12.2018 amending Rule 50 of the CMV Rules, 1989 with effect from 01.04.2019. Further on 06.12.2018, Motor Vehicles (High Security Registration Plates) Order, 2018 was also introduced with effect from 01.04.2019. In view of this provision, Clause 4 of the order provides HSRP for new vehicle sold on or after 01.04.2019 has to be supplied by Vehicle Manufacturing Company and reading of this Clause 4, according to petitioner, is clear that a vehicle manufacturer has to supply the type approved HSRP to its dealers for affixing it in all new vehicles purchased on or after 01.04.2019. For this purpose, Vehicle Manufacturer has to purchase these HSRPs from Original Equipment Manufacturers (OEMs) i.e. Type Approved Certificate Holders, like petitioner company, if the vehicle manufacturer does not hold a Type Approved Certificate for manufact
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M/s N.G. Projects Ltd. Vs. M/s Vinod Kumar Jain, Civil Appeal No. 1846 of 2022 decided on 21.03.2022
The formulation of tender conditions falls within the administrative domain of the authority, and judicial review is limited to preventing arbitrariness or favoritism. The courts cannot interfere wit....
The main legal point established in the judgment is the limited scope of judicial review in tender conditions, emphasizing the authority of the tendering entity to interpret and appreciate its requir....
The court established that tender conditions set by authorities are subject to judicial review only if they are manifestly arbitrary or unreasonable, and that the authority has the discretion to dete....
The implementation of High-Security Registration Plates requires state approval through a transparent tender process, ensuring compliance with statutory provisions for public safety.
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