The classification between the Co-operative Labour and Construction Societies and the private contractors was reasonable and had a direct nexus with the object intended to be achieved.

1. At issue in this writ petition under Arts.226 and 227 of the Constitution of India by Surinder Singh, petitioner, is the validity and the constitutionality of the directions contained in notification, dated 12th April, 1982 (Annexure-P1) issued by the State of Haryana, stipulating that all unskilled works up to any value and skilled works up to the limit of Rs.2 lacs for each work should be allotted to the Co-operative Labour and Construction Societies by way of tenders within the ceiling rates fixed by the competent authority.

2. It has been filed in the following circumstances:-

Surinder Singh, petitioner, is a registered Class IV contractor of the Public Works Department (Buildings and Roads) of the State of Haryana since 1978. He is qualified to tender for works not exceeding Rs.1 lac, After his enlistment in 1978, the petitioner has been executing works for the State of Haryana not exceeding the value of Rs. 1 lac.

3 On 12th of April, 1982, the Governor of Haryana granted concessions to the Co-operative Labour and Construction Societies in the State for a period of five years, that is, up to 31 Dec. 1986 inter alia that unskilled works up to any value and skilled works up to the limit of Rs.2 lacs for each work should be allotted to these societies only by way of tenders within the ceiling rates fixed by the respective Superintending Engineers of each Branch of the Public Works Department. In case, these Societies failed to tender or do not accept the work within the ceiling rate so fixed, the work may be executed by inviting open tenders from both the contractors and the societies. It (is) contended by the petitioner that by extending the above concessions, respondent No. 1 has created a monopoly in favour of the Co-operative Labour and Construction Societies regarding all unskilled works and skilled works up to the limit of Rs.2 lacs. This is not permissible in law. The State cannot resort to invidious discrimination between Co-operative Labour and Construction Societies, who are registered as contractors and individual registered contractors in the matter of entrusting works. Alternatively, it was argued that there is no intelligible differentia for classifying the Co-operative Labour and construction Societies and individual contractors. In any case, if there is any differentia it has no nexus with the object to be achieved.

4. Separate written statements have been filed on behalf of the Secretary, Haryana Government, Department of Co-operation, respondent No.2 and the Executive Engineer, Chandigarh Provincial Division, P.W.D.B. and R. Haryana, on behalf of respondents Nos. 1, 3, 4 and 5. It has been averred therein that vide the impugned notification, two concessions have been granted to the co-operative labour and construction societies in the State for a period of five years. The Government had no intention to create monopoly in favour of the said societies. Being a welfare State, the Government stands committed to raise the standard of weaker sections of Society which have all along been exploited by the contractors-mediators. The concessions have been given in order to fulfil cherished social goals enshrined in Art.39 of the Constitution of India and for promoting co-operative movement and in pursuance of the recommendations of the National Advisory Board on Labour Co-operative set up by the Government of India. The concessions granted only provide for preference to be shown to the Co-operative Societies. It does not create any monopoly in their favour and is not discriminatory. The notification does not exclude contractors of Class IV for the allotment of work altogether. In case, the Societies fail to tender or do not accept the work within the selling rates so fixed, the works may be executed by inviting open tenders from both the contractors and the Societies. The concessions have been granted to the Co-operative Labour and Construction Societies, who cannot otherwise compete with well established