The court affirmed the necessity of ensuring proportional sharing of contracts among qualifying MSE bidders under the Public Procurement Policy, despite allegations of tender violations by HPCL.

1. The alleged arbitrary action on the part of the Respondent - HPCL in finalizing the tender for transportation of petroleum products contrary to the Annexure - P / 4 - the Public Procurement Policy for Micro and Small Enterprises (MSEs) O.2012 (hereinafter referred to as Procurement Policy Order - ) issued by the Central Government and deviating from Annexure - P / 2 Tender Conditions with regard to the eligible quota earmarked to the MSEs (Micro and Small Enterprises) like the Petitioners and in awarding the same to the persons of choice like the private Respondents herein, who are not even qualified under various heads, on a pick and choose basis, is the subject - matter of challenge in these writ petitions.

2. WPC No. 3162 of 2018 is taken as the lead case and the parties and proceedings are referred to as given therein except where it is separately mentioned, depending on the context.

3. Mr. Vivek Chopda, the learned counsel addressed the Court on behalf of the Petitioners. The submission on behalf of the Respondent - HPCL was made by Mr. Ali Asgar, the learned counsel. We heard Mr. Vikram Sharma, who is the learned counsel for the State as well as the learned counsel appearing for the party - Respondents concerned, who have entered appearance.

4. At the very outset, it is relevant to note that, invoking the power under S.11 of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as 'the Act, 2006 - ), the Central Government has notified Annexure - P / 4 Procurement Policy O.2012, bringing it into force w.e.f. 01.04.2012. As per the relevant Clauses in the Annexure - P / 4 Procurement Policy Order, 20% of the goods / work / services have to be earmarked to the MSE segment; of which 20% is for SC / ST MSEs - as defined by the Ministry in the Procurement Policy Order itself. This is with an intent to promote the 'Micro and Small - segment industries to an appropriate extent and as such, the Respondent - HPCL is also bound by the same. It was accordingly that, Annexure - P / 2 NIT was issued inviting bids from the qualified parties for effecting transportation of petroleum products as mentioned in the Notification, also referring to the preference available to the MSE - s segment as given in Annexure - P / 4 Procurement Policy Order.

5. The Petitioner is a proprietorship firm engaged in the business of transportation of petroleum products and is a registered Micro and Small Enterprise under the Act, 2006 as discernible from Annexure - P / 1. The Petitioner is owner of 10 Tank Trucks with carrying capacity of 18 KL (Kilo Litres) and above. Being qualified in all respects, the Petitioner submitted the bid online, quoting @ Rs.131 per KM for free delivery zone and Rs.2.23 / KL / KM for beyond free delivery zone. All the relevant documents were furnished online as stipulated in the tender, besides submitting the hard copies of the relevant documents in the relevant covers stipulated in this regard.

6. In fact, as disclosed from the materials brought on record, the estimated Tank Truck requirement was assessed by the Respondent - HPCL and it was to be for a period of 'five years - from 01.10.2018 to 30.09.2023. The Tank Trucks required were of two different categories i.e. of 12 KL and above (but below 18 KL) and the other one of 18 KL and above. The requirement of the vehicles in the 1st category in respect of first three years was 19 - whereas it was 201 - in the 2nd category. The last date for submission of bid was fixed as 06.07.2018; which came to be extended till 23.07.2018 by a Corrigendum Notification. The tender was opened on 23.07.2018 and the bids received were evaluated, whereby the Petitioner got placed at Sr.N