2017 Supreme(Mad) 2608
IN THE HIGH COURT OF JUDICATURE AT MADRAS
HULUVADI G. RAMESH, TEEKAA RAMAN, JJ.
C. Karthikeyan – Petitioner
Versus
Secretary to Government Rural Development & Panchayat Raj Department – Respondent
Writ Petition No. 7749 of 2017
Decided On : 09-08-2017
For the Petitioner: Mr. R. Subburaj.
For the Respondents: Mr. V. Ayyadurai and Mr. M.K. Subramanian.
Minimal interference in the matter of contracts and tender conditions, and the court's review is limited to instances of bias, mala-fide, arbitrariness, or unreasonableness.
Headnote:
Public Interest Litigation - Tender Conditions - Clauses 3(4) and 3(5) - Section 3 of the General Conditions/Notifications - The court upheld the imposition of conditions in Clauses 3(4) and 3(5) of the General Conditions, finding no arbitrariness, bias, or unreasonableness in the tender notification. The petitioner's failure to establish bona fide for filing the writ petition as a public interest litigation led to the dismissal of the petition.
Fact of the Case:
The petitioner filed a public interest litigation seeking to quash Clauses 3(4) and 3(5) of General Conditions, contending that they were biased and against public welfare. The conditions were related to the testing of LED street lights and the requirement for bidders to have completed similar work under a single agreement for a government entity.
Finding of the Court:
The court found that the conditions were imposed to ensure the quality and standard of the products and to find potential bidders with expertise in handling the project. The petitioner's failure to establish bona fide for filing the petition led to its dismissal.
Issues: The issues revolved around the legality and bias of the tender conditions, the petitioner's locus standi to file the petition, and the government's authority to impose such conditions.
Ratio Decidendi: The court held that in the matter of contracts, minimal interference is called for, and the court can only review if there is an element of bias, mala-fide, arbitrariness, or unreasonableness. The court found no such elements in the imposition of the tender conditions.
Final Decision: The writ petition was dismissed, and no costs were imposed. The court also dismissed related Writ Miscellaneous Petitions.
1. This writ petition has been filed as a public interest litigation, seeking to quash the Clauses 3(4) and 3(5) of General Conditions as illegal and to direct the respondents to send the samples to any one of the NABL accredited laboratory to check all the desired tests as per bid documents.
2. A brief gist of the facts, which led to the filing of the writ petition, is as under:
The Government implemented LED Street light Scheme in Tamil Nadu. It is a Central Government funding scheme, involving an estimated cost of Rs. 329 Crores. Tender notices for supply of huge number of 20W LED street lights fitting with complete set, with 5 years warranty, was issued by all the District Rural Development Agency/District Collectors, inviting bidders for the supply of 9,06,310 numbers of LED all over the State. As per Clause 3(4) of the General Conditions/Notification, the samples submitted along with test reports from a NABL accredited Laboratory, with the bid, will be tested at the field by the Electrical Department of Corporation of Chennai. As per Clause 3(5), the bidder should submit proof for having satisfactorily completed similar type of work of not less than 50% of the value of the bid, under a single agreement for a State or Central Government Department/Boards/Government Undertaking/Local Bodies. Contending that imposition of such a condition is a biased one and that it is against the welfare of the public, the petitioner, who is a member of Federation of Anti Corruption Team India, known as FACT India has come up with the above writ petition.
3. The learned counsel for the petitioner, assailing Clause 3(4) of the General Conditions/Notifications, contended that when the bidder has to submit the samples along with the test report of the samples obtained from the National Accreditation Board for testing and calibration Laboratories, at the time of opening of technical bids, there is no necessity for the respondents to send the samples for testing at the field by Electrical Department of Corporation of Chennai, as the same is illegal, particularly when the Electrical Department of Corporation of Chennai was not having any authorisation from NABL.
4. The learned counsel for the petitioner further contended that Clause 3(5) of the General Conditions/Notifications, namely the bidder has to submit proof for having completed similar type of work of not less than 50% of the bid value, under a single agreement, that too for a State or Central Government Department/Boards/Government Undertaking/ Local Bodies, is without application of mind.
5. It is also contended by the learned counsel for the petitioner that though imposing general conditions of tender is the right of the Government, stipulation of the condition that the bidder should have undertaken similar type of work of not less than 50% of the value of the bid is to enable only the successful tenderers of the last tender to submit their bid, as they alone would be available to satisfy the above condition.
6. It is further contended by the learned counsel for the petitioner that in the notification issued in the Chennai District, such a condition is not stipulated and therefore, there is a discrimination in the notifications given by each District and that such a condition has been stipulated only by the authorities only to favour one of the bidders.
7. The learned counsel for the petitioner further contended that in view of recommendations, the samples were tested without any counter check on quality and the eligibility list was prepared and that it is only to accommodate a particular bidder.
8. It is the final contention of the learned counsel for the petitioner that the act of the respondents in imposing such conditions reflects the non application of mind and it is in violation of Article 21 of the Constitution of India and therefore, seeks to quash Clauses 3(4) and 3(5) of the General Conditions of the tender/Technical bid.
9. Per contra, learned Government Pleader, before reply