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2025 Supreme(Online)(Mad) 10735

MADRAS HIGH COURT
*M. S. Ramesh, A. D. Maria Clete, JJ.
Chelladurai N. v. Secretary to the Government Highways and Minor Ports (HN1) Department Secretariat Chennai
W. P. (MD) No. 26373, of 2024



1. The issue involved in all these Writ Petitions are one and the same and hence, all these Writ Petitions are heard together and disposed of through a common order.

2.1. In the year 2003, the Government, through G.O(Ms)No.88, Highways(HN.1) Department, dated 07.05.2003, had ordered for calling of tenders in packages in a division in respect of the works to be taken up, with the loan assistance from NABARD and HUDCO. However, on the basis of the representation received from a section of the contractors, as well as on the recommendations of the Board of Engineers, the package tendering system was withdrawn through the Government Order in G.O.(Ms) No.125, Highways Department, dated 04.08.2006.
2.2. Later in the year 2012, the Director General of Highways Department had proposed for re - introduction of the package system, putting forth the advantages / justifications of the system, based on which, the Government, through G.O.(Ms) No.162, Highways and Minor Ports (HN1) Department, dated 01.10.2012, had reintroduced the package system for inviting tenders for road works, by amending the Tamil Nadu Highways Manual Volume IV. The said amendment reads as follows: -
"157 - Tender documents must be prepared for each package or work, as the case may be, separately and noted in a register. The name of the works or packages, as the case may be, the names of persons to whom the forms are sold and date should be entered in the forms making necessary entries in the register. Only such forms sold by the department / downloaded from the Tamil Nadu Government Website should be deemed valid for a particular work / package, as the case may be."
2.3. On the strength of G.O(Ms) No.162, the tender notifications for widening of the road under the Highways Department under a Comprehensive Road Infrastructure Development Programme 2024-25 in Tirunelveli (H) C and M Division was issued inviting tenders from the qualified contractors. Similar tender notifications were also called for from C and M Circular of Tirunelveli, through tender notices dated 03.10.2024, 04.10.2024, 05.10.2024, 07.10.2024 and 08.10.2024.
2.4. The Government Order in G.O(Ms)No.162 as well as the aforesaid tender notifications, are put under challenge in all these Writ Petitions.

3. Mr.R.Anand and Mr.P.Ganapathi Subramanian, learned counsels appearing for the petitioners in all the Writ Petitions predominantly raised a ground that the decision of the Highways Department in G.O.Ms.No.162 to resort to package system tenders, deprives the small time contractors from participating in the same thereby violating their fundamental rights under Art.14 of the Constitution of India and therefore is unconstitutional and illegal. It is their further submission that when identical package system was introduced in the Public Works Department, the same was subsequently abolished through G.O.(Ms)No.139, Public Works (G2) Department, dated 27.09.2021, by accepting the proposal of the high level officials of the Public Works Department. Likewise, when similar tender notifications were issued through package system by the Tiruppur Corporation, the Writ Court had quashed the tender notification, predominantly on the ground that such grouping of the works are irrational and made with an object to eliminate certain class of contractors, thereby avoiding healthy competition. Even the Highways Department had originally withdrawn the package system tenders that was introduced in the year 2003, through G.O.(Ms) No.125, Highways Department, dated 04.08.2006, based on the recommendations of the Board of Engineers, as well as the contractors and re - introduction of the same after 6 years in 2012, through G.O.(Ms) No.162, is arbitrary. By referring to the recitals of G.O.(Ms) No.162, the learned counsels submitted that the packaging system is not applicable to centrally sponsored schemes / deposit works and service department works and therefore, the present tender notifications, which are sponsored by the NABARD,










































































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