2021 Supreme(UK) 753
UTTARAKHAND HIGH COURT
Hon’ble Mr. Justice Manoj Kumar Tiwari
Writ Petition (M/S) No. 2237 of 2021
A.M.T. BUILDERS PVT. LTD. – Petitioner
Versus
STATE OF UTTARAKHAND & ORS. – Respondent
Decided on : 17.11.2021
For the State :Mr. G.S. Negi, Addl. Chief Standing Counsel and Mr. Rakesh Thapliyal, Senior Advocate, assisted by Mr. Davesh Bishnoi and Mr. Pankaj Chaturvedi, Advocates
Headnote:
Uttarakhand Procurement Rules, 2017, as amended in 2018 and Municipalities Act, 1916, Sec. 298(2) – Registration and Regulation of Contractors Byelaws, 2018 – No provision which de-bars persons other than residents of Uttarakhand, from registration as Contractor and participating in bidding processes for award of contracts. (Paras 11 to 18)
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JUDGMENT
Petitioner is a Private Limited Company having its registered office at Lucknow in State of Uttar Pradesh.
2. According to the petitioner, he is an experienced Civil Contractor, which is registered as such, inter-alia with Uttarakhand Public Works Department. Nagar Palika Parishad, Manglour, District Haridwar (respondent no. 3) has refused to register the petitioner on the ground that he is not a permanent resident of Uttarakhand State. Thus, feeling aggrieved, petitioner has approached this Court, seeking following reliefs:
“i) Issue a writ, order or direction in the nature of certiorari calling for original records and set-aside the decision of the Respondent No. 3 of its board meeting dated 25.09.2021 under the chairmanship of Respondent No. 4 read with the impugned letter of the Respondent No. 3 dated 08.10.2021 rejecting the application of registration of the Petitioner as a contractor with the Respondent No. 3 (Annexure No. 2);
ii) Issue a writ, order or direction in the nature of mandamus commanding the Respondent No. 3 to consider the application of the Petitioner for registration with the Respondent No. 3 as a ‘Class A' Contractor on the basis of eligibility criteria, as are applied to local domiciled applicants.
iii) Issue a writ, order or direction in the nature of certiorari calling for original records and set-aside the 25 (twenty) tenders in respect of which bids have been invited by the Respondent No. 3 on 15.10.2021 (Annexure No. 7), as only local domiciled persons are eligible to participate in the tender process."
3. The letter issued by Executive Officer, Nagar Palika Parishad, Manglour to petitioner on 08.10.2021, is on record as Annexure-2 to the writ petition. It refers to petitioner's application for registration as Class-A Contractor, made on 31.07.2021. It also refers to the decision taken by the Board of Nagar Palika Parishad, on petitioner's application, on 25.09.2021. Based on the decision taken by the Board, petitioner was informed that his application is being rejected only for the reason that he does not belong to State of Uttarakhand. The decision taken by the Board of Nagar Palika Parishad in its meeting held on 25.09.2021, is on record as Annexure CA-2 to the counter affidavit filed by respondent no. 3.
4. Perusal of the document enclosed as Annexure CA-2 to the counter affidavit reveals that a decision was taken by the Board on 25.09.2021 that submission of Permanent Resident Certificate of Uttarakhand would be an essential condition for registration as Contractor for civil construction works. In other words, residents of other States would be disqualified for registration as Contractor with Nagar Palika Parishad, Manglour.
5. Learned counsel for the petitioner submits that the decision taken by the Board of Nagar Palika Parishad violates equality clause contained in Article 14 of Constitution of India. He further submits that the distinction sought to be made between local residents vis-à-vis others for registration as Contractor, miserably fails the test of reasonable classification, as the classification is not based on any intelligible differentia and the differentia has no rational nexus with the object sought to be achieved by such classification. He further submits that the object in itself is discriminatory, therefore, impugned decision taken on 25.09.2021 cannot be sustained in the eyes of law.
6. Respondent no. 3 has raised defence of public interest in the counter affidavit and has also defended the impugned decision with reference to Rule 3(6) of the Uttarakhand Procurement Rules, 2017, as amended vide notification dated 02.04.2018. English translation of amended Rule 3(6) of Uttarakhand Procurement Rules, 2017, as supplied by petitioner's counsel, is given below:-
Column-1 Column-2
3(6). Generally, the lowest rate tender should be accepted if all the conditions are equal, otherwise the reasons should be recorded completely due to which the lowest rate tender has been rejec