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2022 Supreme(Online)(MAD) 10023

IN THE HIGH COURT OF JUDICATURE AT MADRAS RESERVED ON : 16.06.2022 PRONOUNCED ON : 22.06.2022 CORAM THE HONOURABLE MR.JUSTICE ABDUL QUDDHOSE W.P.No.13594 of 2022 & W.M.P.No.12806 of 2022 Shri Shanthi Surgicare, Rep. By Manager, Sai Prasanth B.D (M/27), Plot No.1, Sidco Nanjikottai Village, Nanjikottai, Thanjavur – 613 006. ... Petitioner Vs

1.The Secretary to Government, Government of Tamil Nadu, Fort St. George, Chennai – 9.

2.The Principal Secretary, Health & Family Welfare Department, Government of Tamil Nadu, Fort St. George, Chennai – 9.

3.The Managing Director, Tamil Nadu Medical Services Corporation, No.17, Pantheon Road, Egmore, Chennai – 8.

4.The General Manager (Drugs), Tamil Nadu Medical Services Corporation, No.17, Pantheon Road, Egmore, Chennai – 8.

5.The Manager (Drugs), Tamil Nadu Medical Services Corporation, No.17, Pantheon Road, Egmore, Chennai – 8 ... Respondents PRAYER: Writ petition filed under Article 226 of the Constitution of India for writ of certiorarified mandamus calling for the records relating to the rejection order dated 02.05.2022 by the third respondent in Tender No.014/M(P)/MBC-KIT/TNMSC/2021 dated 16.02.2022 of the petitoiner's tender application and quash the same as illegal and consequently direct the respondents to award the contract to the petitioner as a lowest bidder (L1) for supply of Mother & Baby Care Kits, in Tender No.014/M(P)/MBC-

KIT/TNMSC/2021 dated 16.02.2022.

For Petitioner : Mr.T.N.Rajagopalan, for M/s.Vimal B.Crimson For Respondents : Mr.R.Shanmuga Sundaram, Advocate General, Assisted by B.Vijay, Additional Government Pleader for R1 & R2 &

Assisted by Sivakumar & Suresh, for R3 to R5

ORDER

In this writ petition, the petitioner has challenged the rejection of its technical bid by the order of the third respondent dated 02.05.2022. The tender pertains to the supply of mother and baby care kits and it is meant for distribution at free of cost for all children born in the Tamil Nadu Government Hospitals every year. The petitioner's technical bid has been rejected on the ground that the National Co-operative Consumer's Federation of India, Chennai Branch (hereinafter referred to as “NCCF”) is only a Co- operative Society registered under Multi States Co-operative Societies Act, 2002 and Rules and is neither a Government Organisation nor an undertaking of either a State or Central Government and therefore, the petitioner has not satisfied the tender requirement which stipulates that the tenderer should have supplied a minimum of 3,30,000 kits in the last three financial years i.e., for the years 2018-19, 2019-20 & 2020-21 to any Government/ Government Organisations.

2. The petitioner has challenged the impugned order on the following grounds:

(a) NCCF is under the Administrative control of Ministry of Consumer Affairs, Food & PD, Government of India and therefore, it is a Government Organisation.

(b) In the communication dated 18.03.2022, the fourth respondent referred to only six documents for submission by the petitioner which did not mention that NCCF is not a Government Organisation.

(c) The impugned order has been passed after a delay of 45 days from the date of submission of the bid on the ground that NCCF is not a Government Organisation.

(d) The tender document does not define what is a Government Organisation.

(e) The impugned order rejecting the technical bid of the petitioner is not an appealable order as per the provisions of section 10 of the Tamil Nadu Transparency in Tenders Act, 1998.

(f) The third respondent did not seek any explanation before rejecting the technical bid of the petitioner under the impugned order dated 02.05.2022 which clearly shows that at any cost, it was decided that the petitioner should be pushed out from the tender in order to favour other tenderers.

3. A counter affidavit has been filed by the respondents and they have contended as follows:

(a) NCCF is not a Government or Government Organisation but is a Co-operative Society registered under the Multi-State Cooperative Societies Act, 2002 (herein after referred to as “MSCS”) and its Rules.

(b) The company has a limited scope of activity pertaining to establishment of Trade connections with consumers (both government & Private entities) in various fields such as consumer goods, agriculture, drugs, pharmaceuticals, coal, chemicals, fertilizers etc.

(c) The company is managed by Board of Directors with Executive Committee, Business Committee and Sub-committee for specific tasks. (d) The company acts by integrating State Level Co-operative Federations and State Co-operative Marketing Federations as their Members.

(e) The company raises funds from sources such as Share Capitals, loans & deposits, donations, grants, subsidy, consultancy services and undistributed net profits. (No where Government has authorised any paid capital).

(f) Central Government and National Co-operative Development Corporations (NCDC) are its Share holders among others.

(g) Directors are nominated from amongst the members under bye-

law of the company and a Government Nominee is permitted under Section

48(i) of the MSCS Act, 2002 and its rules.

(h) Chairman and a vice Chairman are elected as per Act & Rules and in accordance with bye-laws.

(i) The Audit committee is comprised of 4 members viz., Chairman, 2 Directors including vice chairman, one Government Nominee and Managing Director.

(j) The Audit and Accounting is done through an internal audit from panel of Auditors approved by Central Registrar or from the panel of Auditors prepared by NCCF. Annual audit is done through PAG.

(k) NCCF may be wound up in accordance with the provisions of MSCS Act and not through a disin

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