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2011 Supreme(Mad) 3029

2011 (4) CTC 225
High Court of Judicature at Madras
V. DHANAPALAN
Uflex Limited, represented by its Authorised Signatory
Versus
State of Tamil Nadu, represented by the Secretary to Government & Another
WRIT PETITION No.8090 OF 2011
Decided on : 29-06-2011

Important Points

The court's decision emphasized the limited scope of judicial review in matters of tender issuance and the importance of adhering to the rules and procedures outlined in the relevant legislation.

Subject

Administrative Law - Tender Issuance

Act Referred

CONSTITUTION OF INDIA : Art.19, Art.226, Art.14
TAMIL NADU TRANSPARENCY IN TENDERS ACT : S.17(2)

Headnote

Corrigendum - Tender Issuance - Tamil Nadu Transparency in Tenders Act,1998 - Rule 17 (1)

Fact of the Case:

The petitioner, a leading manufacturer of security hologram and holographic films, challenged a corrigendum issued by the second respondent in a tender notification for the production and supply of Polyester Hologram Excise Labels. The corrigendum added a condition requiring three years of experience in conventional Master Origination from 2D/3D and dot-matrix system separately, which the petitioner deemed arbitrary and against public interest.

Finding of the Court:

The court found that the corrigendum was issued in accordance with Rule 17 (1) of the Tamil Nadu Transparency in Tenders Act,1998, which allows for changes, modifications, or amendments to tender documents before the opening of tenders. The court held that the corrigendum was issued transparently and in line with the Act's objective of ensuring transparency in the procurement process.

Issues: The main issue was whether the corrigendum issued by the second respondent was in accordance with the law and whether it was arbitrary and against public interest.

Ratio Decidendi: The court's decision was based on the interpretation of Rule 17 (1) of the Tamil Nadu Transparency in Tenders Act,1998, and the principles of judicial review in the exercise of contractual powers by government bodies. The court emphasized that its role was to determine the legality of the decision-making process and not to review the merits of the decision.

Final Decision: The court dismissed the Writ Petition and directed the respondents to proceed with the tender process, finding that the corrigendum was issued in a transparent manner and in accordance with the Act.

Advocates Appeared:
For the Petitioner:AR.L.Sundaresan, Senior Counsel, for K.J. Rebello and S. Elambharathi, Advocates.
For the Respondents:A. Navaneetha Krishnan Advocate General, for M.C. Swamy, Spl.Govt.Pleader, assisted by P.S. Sivashanmuga Sundaram, Addl.Govt.Pleader.

JUDGMENT :-

1. When the Miscellaneous Petitions are listed for hearing, with the consent of the learned counsel on either side, the main Writ Petition itself is taken up for disposal.

2. This Writ Petition has been filed for issuance of a writ of certiorari, to call for the records of the second respondent of the Corrigendum issued in its Tender bearing No.1/2011 for production and supply of Polyester Hologram Excise labels on Turnkey basis and quash the same as being arbitrary, irrational and against public interest and is violative of Article 14 of the Constitution of India and the provisions of Tamil Nadu Transparency in Tenders Act,1998, in short, "the Act" and the Rules framed thereunder, in short, "the Rules" in so far as the changes mentioned in corrigendum with reference to three years experience each for conventional in Master Origination from 2D/3D and dot-matrix system separately.

3. Facts :

3.1. The petitioner is a Public Limited Company and leading manufacturer of security Hologram and Holographic films in India. It is a part of Rs.2,500 crore group. It is a supplier of High Security Hologram to Uttar Pradesh Excise Department, Allahabad; Meghalaya Excise Department, Shillong; and Sikkim Excise Department, Gangtok, in huge quantity around 16 to 18 crores per month. It is having comprehensive manufacturing facility for manufacturing High Security Holograms. It has a Master Origination Lab of resolution from 6,000 DPI to 1,20,000 DPI with single premises under one roof. The affixation of holographic labels and procuring the same by inviting tenders was started by the Government from the year 1998.

3.2. The second respondent issued a tender notification by Notification No.1/2011 on 18.02.2011, specifying the technical specification which is required in the hologram labels. In sub-clause (4) of Part 4 of the tender document, the second respondent specified a condition that the tenderer should have at least three years experience in the field of manufacture of hologram with Master Origination. The said condition was later modified by issuance of Corrigendum on 14.03.2011. When the last date for submission of tenders was 23.03.2011, the second respondent hastily on 14.03.2011 uploaded in its website the impugned corrigendum, wherein the tender condition mentioned in Part-4, sub-clause (4) with reference to experience was changed, adding that the tenderer apart from having a minimum of three years of experience in the field of manufacture of hologram should also have three years each for conventional Master Origination from 2D/3D and dot-matrix system separately, which is highly irrational and arbitrary. By a letter dated 17.03.2011, the petitioner requested the second respondent to waive the conditions imposed in the impugned corrigendum, but he has not received any reply till date. Hence, this Writ Petition.

4. Respondents have filed a counter, stating as follows :

The procedure of affixing Excise Adhesive Labels is aimed at for actual accounting and collecting of excise revenue under the Indian Made Foreign Spirit supplies and arresting illicit flow of liquor in the State. Therefore, excise labels are affixed on all the liquor bottles manufactured by the distilleries as well as those imported by Tamil Nadu State Marketing Corporation Limited from other States. Excise labels are procured on turnkey basis by calling for tenders. The contract period of the existing supplier is up to 30.04.2011. Therefore, a fresh tender was notified on 18.02.2011, calling for tenders from prospective bidders for the production and supply of Polyesterised Hologram Excise Labels. Some of the prospective bidders have sought for clarifications regarding the specifications of the hologram excise labels notified in the tender. Since the specifications of the hologoram excise labels are approved by a Tender Specification Committee consisting of experts in the field of holography from Indian Institute of Technology, Chennai, Anna University, Indian In

















































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