IN THE HIGH COURT OF GAUHATI, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
R.M. CHHAYA, SOUMITRA SAIKIA, JJ.
Pintu Kundu S/o Arun Kumar Kundu And Ors – Appellant
Versus
The Indian Oil Corporation Rep. By Its Managing Director – Respondent
WA 374 of 2022
Decided on : 05-12-2022
Constitution of India, 1949 – Article 14, 226 – Equality before law – Power of High courts to issue certain writs – Learned Single Judge original writ petitioners have preferred this intra-Court appeal – Indian Oil Corporation issued a tender notice for road transportation of bulk petroleum product by top Loading Tank Truck and as per schedule bid was to locations of Depot – Held, Court in case of Galaxy Transport Agencies Fleet Owners Transport Contractors reported – Learned Single Judge considered judgments of Court in cases of Afcons Infrastructure Limited Nagpur Metro Rail Corporation Limited reported Central Coalfields reported Apex Court – Case at hand respondent Oil Company being a government undertaking must have a free hand in prescribing the conditions which as observed mala fide or actuated by bias and hence no interference is required – Court are in total agreement taken by learned Single Judge and the observations made in impugned judgment and order – Appeal dismissed.
JUDGMENT :
R.M.Chhaya, J.
Feeling aggrieved and dissatisfied by the judgment and order dated 18.11.2022 passed by the learned Single Judge in WP(C) 4678/2022, the original writ petitioners have preferred this intra-Court appeal. The following facts emerge from the record of the appeal;
The Indian Oil Corporation Ltd. (hereinafter referred to as “Oil Company”) issued a tender notice for road transportation of bulk petroleum product-ATF (Aviation Turbine Fuel) by top Loading Tank Trucks under Tender no.RCC/ERO/37/2022-23/PT-45 and e-Tender ID:2022-ERO-152818-1 on 25.06.2022 and as per the schedule, the bid was to open on 23.07.2022 for the locations of Guwahati RCO, Bongaigaon RCO, Lumding Terminal and Missamari Depot. As the record unfolds 155 transporters participated in the tender process out of which 128 tenderers, including the appellants, were eligible in ‘technical bids’ and the ‘price bids’ are yet to be opened.
2. It is the case of the appellant that the respondent Oil Company has incorporated certain conditions and terms in the said tender which are different from the earlier practice and procedure and are against the interest of the existing Tank Trunks, including the appellants. It is also contended that the rate fixed in the tender is totally unreasonable and unfair as the same has been fixed at the rate lower than one fixed in the earlier tender of 2017 by completely ignoring the escalation of price/cost with respect of maintenance of vehicle, staff salary, essential items etc. including the loss suffered by the tank trucks during the Covid-19 pandemic. It is also further contended by the appellants that the respondent Oil Company has incorporated a term stipulating that in case if more than one party has quoted the same rate, preference will be given to the fleet with less average age. It is also contended by the appellants that the life span of a commercial vehicle including oil tanker as fixed by the Government of India being 15 years, the appellants apprehend that they will be left out from the realm of proposed contract. It is also contended that the distance is also not properly calculated and shortage distance as considered by the respondent Oil Company will put the transporters to additional financial burden. As the record unfolds the appellants firstly filed a writ petition being WP(C) 4602/2022 before this Court and the learned Single Judge by order dated 12.07.2022 was pleased to direct the respondent Oil Company to take note of the said grievances and the appellants were given liberty to file a fresh representation before the Oil Company. Pursuant to the said order, a representation was filed by the appellants on 13.07.2022 which was replied by the Oil Company on 18.07.2022.
3. It is the case of the appellants that they were awarded contract in 2017 for locations of Guwahati, Bongaigaon, Numaligarh and Missamari depot and the appellants have been discharging their duties sincerely, honestly and to the satisfaction of the respondent authorities, even during the pandemic in spite of having incurred huge financial loss. It is contended by the appellants that in the instant tender dated 25.06.2022, the respondent Oil Company has deviated from the earlier practice and procedure which is against the interest of existing tank trucks, including the appellants and the said conditions are totally unreasonable, unfair and whimsical and the tenderers may not be capable of executing the same in a practical manner. According to the appellants, such conditions are stipulated with the aim to ultimately oust the appellants and the local transporters from the realm of contract and to award the contract in favour of the contractors outside the State. Several other detailed contentions were raised by the appellants before the learned Single Judge. The appellants have challenged certain conditions of the tender, more particularly, clause 21 of the said tender notice dated 25.06.2022 and have contended that this Court has no juri
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Judicial interference in the matter of tenders and contracts is limited and the court should exercise restraint in interfering with the administrative decision-making process.
Point of law: powers of judicial review are limited and while exercising such power the Court has to see whether the process adopted or decision made by the authority is malafideor is intended to fav....
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....
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
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....
District Collector is not empowered to consider the aspect of alteration of any route or alignment except to remove difficulties faced by the licensee. As a result of this, even the request of altern....
Judicial review of tender conditions is restricted to cases of arbitrariness or unreasonableness, reinforcing that the authority determining eligibility criteria has the discretion and expertise in c....
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