The main legal point established in the judgment is that the Government policy granting preferential treatment to Co-operative Labour and Construction Societies in the allotment of works did not violate the fundamental rights of the petitioners and was not unconstitutional.

G.S.SINGHVI, J.

1. With a view to deal with the problems of Co-operative Labour and Construction Societies, Government of Punjab vide notification dated 9-8-1979 (Annexure RI in C.W.P. No. 5998 of 2000) constituted a Board consisting of the following:

1. Co-operation Minister, Punjab Chairman

2. Financial Commissioner, Revenue and Secretary to Govt., Punjab, Co-operation Department. Member

3. Secretary to Govt., Punjab. P.W.D. Department. Member

4. Secretary to Govt., Punjab, Local Self Government. Member

5. Chief Engineer (B & R) Member

6. Chief Engineer (Irrigation) Member

7. Chief Engineer (P.H.) Member

8. Representative of Northern Railway Member

9. Representative of Central Public Works Department. Member

10. Chairman of Punjab State Co-operative Labour and Construction Federation Ltd., Chandigarh. Member

11. Two Representatives from Distt. Co-operative Labour and Construction Unions. Member

12. Registrar, Co-operative Societies, Punjab. Member

13. Deputy Registrar, Cooperation Member-Secretary

2. The Board was reconstituted vide notification dated 23-4-1990 (Annexufe R-3 in C.W.P. No. 5998 of 2000) with Commissioner and Secretary to Government, Punjab, Co-operation Department as its Chairman. The Board held meetings from time to time and made recommendations for extending certain concessions to the Co-operative Labour and Construction Societies in the State. The State Government accepted the recommendations of the Board and issued notifications dated 31-5-1989 and 16-8-1994 for giving preference to the Co-operative Labour and Construction Societies in the matter of allotment of works by its departments and local bodies etc. In the meeting of Labour Advisory Board held on 9-8-1999, suggestion made by Co-operation Minister of the Government of Punjab to extend concessions and privileges to the Co-operative Labour and Construction Societies for a period of five years was accepted and the following decisions were taken: "

(i) The concessions to Co-operative Labour and Construction Societies in the State will continue for a further period of five years i.e. from 15-8-99 to 14-8-2004.

(ii) All unskilled works up to any value should be allotted to these societies and for the allotment of skilled work, the present limit of Rs. 5,00 lacs is increased to Rs. 10.00 lacs.

(iii) the concessions granted to Labour and Construction Societies will henceforth also apply to works relating to B.B.M.B., Punjab. Punjab Agro Industries Corporation, Department of Food and Supply, Punjab. Punjab Health Systems Corporations and works relating to world Bank aided projects in all Department.

(iv) There will be no earnest money for the skilled works up to Rs. 5.00 lacs. the Societies will deposit earnest money @ 25% of the earnest money deposited by other Contractors for the skilled works up to Rs. 10.00 lacs and it will be 50% of the earnest money deposited by other Contractors for the skilled works above Rs. 10.00 lacs. However, the societies will not furnish any other Bank guarantee or security.

"

3 The State Government accepted the recommendations of the Board and issued notification No. 76/ 52/ 79-CI (v)/11209 dated 10-9-1999 (Annexures P-3 and R-3 in C.W.P. No. 5998 of 2000). The relevant extracts of that notification read as under "

1. All unskilled works up to any value and skilled works up to the limit of Rs. 1000000/- for each work should be allotted to these societies only by way of tenders within common schedule of rates fixed by Public Works Department, Punjab. In case these societies fail to tender or do not accept the work within the ceiling rates so fixed, the work may be executed by inviting upon tenders from both the contractors and the societies.

2. If more than one Labour and Construction Co-operative Societies have offered tenders for a work, the lowest rate accepted will be made applicable to the other societies as well for doing that work up to their capacity, the work left over be got executed by inviting upon tenders