IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
VIJAY BISHNOI, CJ., N. UNNI KRISHNAN NAIR, J.
Self Dependent Motor Driver Union, Represented By Its President Sri Tarun Borgohain, S/o. Late Paresh Borgohain And Ors. – Petitioners
Versus
The Union Of India, Represented By The Secretary To The Govt. Of India, Ministry Of Petroleum And Natural Gas And Ors. – Respondents
WA No.365 Of 2024
Decided On : 08-11-2024
(A) Constitution of India - Articles 14, 19(1)(g), and 21 - Tender process - The Notice Inviting Tender (NIT) dated 31.07.2024 for hiring of light vehicles by ONGC was upheld, emphasizing fairness and non-arbitrariness in public procurement. The court found the draw of lots method reasonable and aimed at addressing unemployment among local youths. (Paras 6, 20, 21, 32)
(B) Judicial Review - The court reiterated that the scope of judicial review in tender matters is limited, allowing for greater latitude to state authorities unless actions are proven arbitrary or unreasonable. (Paras 23, 30)
Facts of the case:
The appellants challenged the NIT issued by ONGC for hiring 372 light vehicles, arguing that the draw of lots method was arbitrary and violated constitutional provisions.
Findings of Court:
The court upheld the NIT, stating it was in line with the tripartite meeting's decisions aimed at local employment.
Issues: The main issues included the legality of the draw of lots method and the age restrictions imposed on applicants.
Ratio Decidendi: The court ruled that the tender conditions were reasonable and aimed at addressing local unemployment, thus not violating constitutional rights.
Result: The writ appeal was dismissed.
JUDGMENT :
(N. Unni Krishnan Nair, J.)
Heard Mr. K. N. Choudhury, learned senior counsel, assisted by Mr. L. N. Dihingia, learned counsel, appearing on behalf of the appellants. Also heard Mr. P. S. Bhattacharyya, learned CGC, appearing on behalf of respondent No. 1; Mr. Indraneel Chowdhury, learned senior counsel, assisted by Mr. M. K. Das, learned counsel; appearing on behalf of respondents No. 2 to 4; and Mr. N. Das, learned Government Advocate, Assam, appearing on behalf of respondent No. 5.
2. The present intra-Court appeal is directed against the judgment & order, dated 25.09.2024, passed by the learned Single Judge in WP(c)4108/2024.
3. The brief facts requisite for the purpose of adjudication of the issues arising in the present proceeding, is noticed as under.
3.1. In pursuance of the demands raised from various organizations as well as the unemployed youths of Sivasagar District; a tripartite meeting between the District Administration, representatives of the Oil and Natural Gas Corporation Ltd.(ONGCL) and various organizations of Sivasagar District, was held on 08.08.2023, with regard to the issue of hiring of vehicles by the Oil and Natural Gas Corporation Ltd.(ONGCL). In terms of the deliberations held in the said meeting; a decision was arrived at to the effect that the Oil and Natural Gas Corporation Ltd. (ONGCL) would issue tenders for hiring of passenger vehicles by adopting the principle of ‘one applicant, one vehicle’ and by resorting to the process of selection for award of contracts by way of draw of lots. It was also decided that experience certificate for the driver issued by the owner of the commercial vehicle would be accepted by the Oil and Natural Gas Corporation Ltd. (ONGCL) authorities and equal weightage would be given to all qualified bidders.
3.2. The aforesaid meeting also requested the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities to review the matter at their level and come up with a rationale solution so as to address the genuine demands of the unemployed youth in the area. In pursuance of the said decision as arrived at the meeting held on 08.08.2023; the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities, vide communication, dated 19.09.2023, reviewed the process of evaluation of tenders for “hiring of light vehicle in the Assam Asset” and decided for hiring of light passenger vehicles on one applicant, one vehicle basis, at the rate to be fixed by the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities through a process of draw of lots. Accordingly, it was also stated that the provisions of the integrated M.M. Manual was modified in respect of evaluation of tenders for hiring of vehicles in the Assam Asset as per Annexure-I attached to the said Communication.
3.3. The decision as contained in the said communication, dated 19.09.2023, issued by the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities along with the decision of the said authority to cancel a tender issued in the month of July, 2023, for hiring of passenger vehicles came to be challenged before this Court by way of institution of a writ petition being WP(c)6208/2023. The learned Single Judge on consideration of the issues so arising, was pleased vide order, dated 18.06.2024, to dismiss the said writ petition upholding the policy as adopted by the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities and contained in the communication, dated 19.09.2023. Further, the cancellation of the tender in the matter, issued in the month of July, 2023, was also upheld.
3.4. In pursuance of the said development; the Oil and Natural Gas Corporation Ltd.(ONGCL) authorities proceeded to issue an Notice Inviting Tender(NIT), bearing Tender No. R16DC24005, dated 31.07.2024, for the purpose of hiring of services of brand new 372 nos. of light vehicles(taxi) for the Assam Asset for a period of 4 years on lottery basis. The Make and Model of the vehicles so required along with the numbers of such vehicles required against
The court upheld the tender process by ONGC, affirming that the draw of lots method is reasonable and aimed at addressing local unemployment, thus not violating constitutional rights.
The court established that a Draw of Lots in a tender process does not constitute a lottery under the Lotteries (Regulation) Act, 1998, and can be a valid method to address unemployment.
Tender conditions cannot differentiate based on ownership without rational basis, violating constitutional principles of equality and fairness. (Articles 14 and 19(1)(g))
The main legal point established in the judgment is the limitation of judicial review in tender matters, the need for commercial prudence in evaluating tenders, and the importance of fairness and non....
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....
Eligibility for contracting: To foster competition, firms and individuals to offer goods, work, and services required for the program, any conditions for participation shall be limited to those that ....
The main legal point established in the judgment is the importance of fair and transparent decision-making processes in accepting tenders and the need for clarity and legal certainty in tender norms ....
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....
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