SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Article Pause Article
judgment-img

2014 Supreme(J&K) 293

HIGH COURT OF JAMMU AND KASHMIR AT JAMMU
Bansi Lal Bhat, J.
Chaman Lal & Anr. -Appellant
Versus
Indian Oil Corporation Ltd. & Ors. -Resopndent
OWP No. 1181-2012, CMA No. 1638-2012
Decided On : 06-08-2014

Advocates Appeared:
Pranav Kohli, R.Koul.

The court emphasized the limited scope of judicial review in contractual matters involving government or a Public Authority and the need for uninterrupted supply of Petroleum Products for the benefit of consumers.

Headnote:

Reservation Clause - Contract Allotment - Section 103 of the Constitution of Jammu and Kashmir - NIT bearing No. PSO/OPS/POL PT/MS-HSD/Bulk/2012-01 dated 10th April, 2012 - Summary: The court discussed the reservation clause in the contract allotment process for road transportation of Bulk Petroleum products. It highlighted the obligation to allocate 15% of the quota in the allotment to the reserved categories and the requirement to carry forward the unfilled quota of the previous year for the reserved category. The court emphasized the preference given to RO Dealers/Direct Customers for transportation of their own load requirement and the limited scope of judicial review in contractual matters involving government or a Public Authority.

Fact of the Case:

The petitioners sought relief for quashment of contract allotments and adherence to the reservation clause in the NIT for road transportation of Bulk Petroleum products. The petitioners, belonging to reserved categories, claimed discrimination in the allotment process.

Finding of the Court:

The court found that the reservation clause could only be enforced when the requirement of supply of trucks is not met by the RO Dealers/Direct Customers. It dismissed the petition, stating that the allegations of discrimination and arbitrariness were unfounded.

Issues: The issues revolved around the enforcement of the reservation clause, discrimination in the allotment process, and the preference given to RO Dealers/Direct Customers for transportation of their own load requirement.

Ratio Decidendi: The court emphasized the limited scope of judicial review in contractual matters involving government or a Public Authority. It highlighted the preference given to RO Dealers/Direct Customers and the need for uninterrupted supply of Petroleum Products for the benefit of consumers.

Final Decision: The petition was found to be without merit and dismissed.

1. In this petition, filed under Article 226 of Constitution of India read with Section 103 of the Constitution of Jammu and Kashmir, petitioners seek the following reliefs.

(i) Writ of Certiorari seeking quashment of the allotments of contracts as Road Transport of Bulk Petroleum Products in violation of Reservation Clause of the NIT bearing No. PSO/OPS/POL PT/MS-HSD/Bulk/2012-01 dated 10th April, 2012

(ii) Mandamus commanding upon the respondents to adhere to the reservation clause and allocate 15% in the allotment to the reserved categories in both 12KL and 18/20KL Tank Trucks.

(iii) Mandamus commanding upon the respondents to include and carry forward the quota of the reserved categories of the previous year of 2008 in the year of 2012 in the contract for the Road Transportation of Bulk Petroleum product notified vide NIT bearing No. PSO/OPS/POL/PT/MS-HSD/Bulk/2012-01 dated 10th April, 2012.

(iv) Prohibition restraining the respondents from proceeding with Additional Requirement notified on 19.07.2012 for both 12KL capacity Tank Trucks and 18/20KL capacity tank trucks without adhering to the reservation Clause.

2. Petitioners are the proprietorship concerns and Shri Chaman Lal and Shri Rajesh Kumar are the sole proprietors. The proprietors deal in transportation and claim to have undertaken various carriage contracts with Indian Oil Corporation Limited and other Government Authorities/Bodies. Both the petitioners belong to the reserved category. Petitioner No.1 operates fleet of trucks of the carrying capacity of 12KL as also 18/20KL.

3. Respondent No. 2 issued the Notification inviting tenders (for Brevity `NIT') dated 10th April, 2012 inviting tenders under two bid system from Tank Truck Owners for award of contracts for road transportation of Bulk Petroleum products w.e.f. 01.06.2012 to various stations as per the requirement notified for each location. Petitioners participated in the process for various stations by submitting its tender for the Tank Trucks (for Brevity `TTs') under reserved category. Bids were submitted on 10.04.2012 and opened alongwith the bids submitted by the other bidders on the same day. Petitioners duly qualified in their tenders. Work orders under the 12KL TTs under reserved category came to be allotted in their favour. However, in the 20 KL TTs, 18 number 20KL TTs were allotted, though the requirement was notified only in regard to 10. The NIT contains a provision for reservation in favour of the reserved categories in terms whereof respondents were under an obligation to allocate 15% of the quota in the allotment of Tank Trucks in favour of the reserved categories. Moreover, unfilled quota of the previous year for the unreserved category had to be carried forward to the next tender also and offered to SC/ST candidates. Subsequently, respondents notified on 19th July, 2012 the requirement of additional Tank Trucks for the allocation of transportation of the contract under 12 KL capacity TTs as also 18/20 KL capacity, TTs. However, respondents did not carry forward the unfilled quota of reserved category from the previous tender year 2008, thereby violating clause IV of the General terms and conditions. Petitioners who belong to reserved category are aggrieved of the same and assail the same through the medium of instant writ petition.

4. Respondents 1 to 3 have filed objections contesting the petition on the ground that petitioners have no vested or even any accrued right to the award of contract. It is pleaded that the respondents have followed a fair, methodical and transparent system of awarding the contract. The tender process is guided by the policies and principles/guidelines of the Indian Oil Corporation. All terms and conditions including the eligibility criteria and all techno commercial conditions of the tender and evaluation/selection criteria were incorporated in the tender document. Tenders were evaluated strictly as per the terms and condition and policy guidelines of the Corporation. T

























Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
whatsapp-icon Back to top