W.P.(C) 3982/2019

Page 1 of 33

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 14^th SEPTEMBER, 2022

IN THE MATTER OF:

+

W.P.(C) 3982/2019 & CM APPL. 32915/2019

SECURITY AND INTELLIGENCE SERVICES (INDIA) LTD.

AND ORS.

..... Petitioners

Through:

Mr.

Darpan

Wadhwa,

Senior

Advocate along with Mr. Anupam

Sinha

and

Mr.

Amrit

Singh,

Advocates

versus

UNION OF INDIA AND ORS.

..... Respondents

Through:

Mr. Chetan Sharma, ASG with Ms.

Bharathi Raju, Sr. Panel Counsel with

Mr. Amit Gupta, Mr. Rishav Dubey,

Mr. Sohag Garg and Mr. Saurabh

Tripathi, Advocates for UOI.

Mr. Sandeep Mahapatra, Standing

Counsel for R-4/GAIL.

CORAM:

HON’BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

SUBRAMONIUM PRASAD, J

1.

The instant Writ Petition has been filed under Article 226 of the

Constitution of India, seeking issuance of a writ of mandamus or any other

appropriate writ to set aside/quash the Office Memorandum dated

13.09.2018 (“Impugned O.M.”) issued by the Union of India/Department of

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/003671

W.P.(C) 3982/2019

Page 2 of 33

Public Enterprises, Ministry of Industries and Heavy Industries & Public

Enterprises (“Respondent No. 1”) and the tender dated 07.03.2019

(“Impugned Tender I”), tender dated 29.03.2019 for Haryana Region I

(“Impugned Tender II”), tender dated 29.03.2019 for Haryana Region II

(“Impugned Tender III”) and tender for Punjab Region (“Impugned Tender

IV”) (hereinafter collectively referred to as “Impugned Tenders”) by GAIL

(India) Limited (“Respondent No. 4”).The Petitioner No. 1 is a private

security agency established in 1974 and is licensed under the Private

Security Agencies (Regulation) Act, 2005 (“PSARA”). Petitioner Nos. 2 to

7 are Ex-Servicemen who are employed with Petitioner No. 1 after their

service in the Indian Armed Forces.

2.

The relevant facts leading to the filing of the instant Writ Petition are

as follows: -

i.

On 19.05.1992 the Directorate General of Resettlement (“DGR” or

“Respondent No. 5”) which functions under the Department of Ex-

Servicemen Welfare (Ministry of Defence) issued guidelines titled

“Guidelines for Sponsoring & Creating of Security Agencies &

Related Activities” which laid down general norms for sponsoring

security agencies for award of security contracts and the modus

operandi of their functioning.

ii.

Thereafter, the Ministry of Defence issued an Office Memorandum

dated 04.02.1994 addressed to the Secretaries of all Ministries and

Departments of Government of India, stating that Respondent No.

5 has evolved a scheme to maintain a panel of retired Service

officers, State Ex-Servicemen Corporation and Ex-Servicemen Co-

operative Societies who are desirous of obtaining security work on

contract basis.

This is a digitally signed Judgement.

NEUTRAL CITATION NO: 2022/DHC/003671

W.P.(C) 3982/2019

Page 3 of 33

iii.

Subsequently, on 11.11.1994, Respondent No. 1 issued an

Office

Memorandum

requesting

all

administrative

Ministries/Departments of the Government of India to issue

instructions

to

public

sector

undertakings

under

their

administrative control to obtain contract security services from

Respondent No. 5 or the State Ex-Servicemen Security

Corporation for sponsoring Ex-Servicemen Security Agencies on

their panel without engaging security agencies on contract through

open tender. Subsequently, Respondent No. 1 on 18.03.1996

issued another O.M. reiterating the request made in the earlier

O.M. dated 11.11.1994.

iv.

On 10.12.1997, Respondent No.1, while noting the need for

granting greater operational freedom to the public sector

enterprises and a view to rationalise and simplify the existing se