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1994 Supreme(SC) 697

SUPREME COURT OF INDIA
M.N.Venkatachaliah, C.J.I., S.Mohan, M.M.Punchhi, JJ.
Tata Cellular
Versus
Union Of India
Case No. : 4947-50 of 1994, 4951 , 4952 of 1994
Date of Decision : 7/26/94
Advocates Appeared: Baig M.H. : Bhalla Ritu : Chaterjee Nilina : Chidambaram P. : Divan Anil B. : Gagrat R.J. : Ganpathy N. : Goswamy N.N. : Grover Ashok : Gupta D.P. : Inna Smitha : Kachwala Sumeet : Katiyar Anil : Koura V.N. : Malhotra Sanjeev : Mishra D.N. : Mishra Shrish Kumar : Narain Ravindra : Nariman F.S. : Parasaran K. : Parekh P.H. : Prasad Anand : Puri Sanjeev : Raju N.D.B. : Ramachandran M.G. : Ramaswamy G. : Rana U.A. : Rao Nageswar : Ratnam T.V. : Sagar Ashok : Salve Harish N. : Sen Ashoke : Sen Kum Kum : Sharma Hemant : Shroff P.S. : Shroff S.S. : Shroff Suresh A. : Singh K.N. : Singh Punita : Sorabjee Soli J. : Swaroop Shalendra : Vahanvati Gulam : Venugopal K.K. : Verma Anjali K.

Advocates:
ANAND PRASAD, Anil B.Divan, ANIL KATIYAR, Anjali K.Verma, ASHOK GROVER, Ashok Sagar, ASHOKE SENGUPTA, D.N.Mishra, D.P.GUPTA, F.S.NARIMAN, G.RAMASVAMY, GULAM VAHANVATI, HARISH N.SLAVE, HEMANT SHARMA, K.K.VENUGOPAL, K.N.SINGH, K.PARASARAN ATTORNEY, Kumkum Sen, M.G.RAMA CHANDRA RAO, M.H.BAIG, N.D.B.RAJU, N.GANAPATHI, N.N.GOSWAMY, NAGESVAR RAO, NILINA CHATERJI, P.CHIDAMBARAM, P.H.Parekh, P.S.SHROFF, PUNITA SINGH, R.J.GAGRAT, Ravindra Narayan, Ritu Bhalla, S.S.SHROFF, SANJIV MALHOTRA, SANJIV PURI, SHALENDRA SVARUP, SHRISH MISHRA, SMITHA INNA, SOLI J.SORABJI, SUMIT KACHVALA, SURESH A.SHROFF and CO., T.V.RATNAM, U.A.RAMA, V.N.KOURA

Headnote:

Criminal Procedure Code - Section 482 - Quashing the FIR – Employment and Service - No evidence or comes to an unreasonable finding - Department of Telecommunications, government of India invited tenders from Indian Companies with a view to license the operation of "Cellular Mobile Telephone Service in four metropolitan cities of India, namely, Delhi Bombay Calcutta and Madras - Cellular mobile telephone means a telecommunication system which allows two-ways telecommunication between a mobile or stationary telephone to another mobile or stationary unit at a location. It may be within or outside the city including subscriber and international Subscriber-cum calls - Last date for submission of tender was tender process was in two stages. First stage involved technical evaluation and the second involved financial evaluation. Those who were short-listed at the first stage were invited for the second stage – Held, A letter Department of Communications, Telecom Commission was addressed to the appellants as follows - Department of Telecommunications New - Bombay House Street, Bombay for franchise for cellular mobile telephone service for Bombay, Delhi, Calcutta and Madras. Kindly refer this office letter of even No informing you that M/s Tata Cellular Ltd were provisionally selected for franchise for providing cellular mobile telephone service at Delhi on a non-exclusive basis - That matter has been reconsidered in the light of the judgment delivered by High court of Delhi in this case and a revised list of provisionally selected bidders in the cities of Bombay, Delhi, Calcutta and Madras has been prepared - Revised list does not include mobile telephone service in any of the four cities - Earlier letter of even number may therefore be treated as cancelled - From this letter we are not able to fathom the reason for omission. As seen above, Tata Cellular was originally selected for Delhi. By implementation of the judgment of the High court it has been left out. Before doing so, as rightly urged by this appellant ought to have been heard - Therefore there is a clear violation of the principle of natural justice. On an overall view we find it has two distinctive qualifications - In that It has not borrowed from any commercial bank. 2. - It has an annual turnover from Indian parameters of and the annual turnover of foreign parameters - Comparatively speaking other companies do not possess high credentials yet it has been awarded low marks with regard to the reliance on Indian public financial institutions and financial strength of the parameters/partner companies - These qualifications could have been validly urged had it been heard - Then court do not know what decision could have been arrived - Supreme court in appeal Sterling Computers Limited v. M&N Publications Limited against the judgment also did not appear to have made any strictures - There was nothing on the record of the respondents to suggest that any CBI enquiry was pending against this company - There was no FIR and no preliminary report adverse to the company and we feel the ghost of CBI has been unnecessarily brought into play. The company appears to have been punished for no sin of its. However, since the company has not complained we will leave the matter at that – Petition allowed

Judgment

MOHAN. J

(1) LEAVE granted,

(2) ALL these appeals can be dealt with under a common judgment since one and same issue requires to be decided. The brief facts are as under.

(3) THE Department of Telecommunications, government of India, invited tenders from Indian Companies with a view to license the operation of "Cellular Mobile Telephone Service" in four metropolitan cities of India, namely, Delhi, Bombay, Calcutta and Madras. Cellular mobile telephone means a telecommunication system which allows two-ways telecommunication between a mobile or stationary telephone to another mobile or stationary unit at a location. It may be within or outside the city including subscriber-cum-diailing and international SUBSCRIBER-cum-dialling calls. The last date for submission of tender was 31/3/1992. The tender process was in two stages. First stage involved technical evaluation and the second involved financial evaluation. Those who were short-listed at the first stage were invited for the second stage.

(4) THIRTY bidders participated initially at the first stage. The first Tender Evaluation Committee was constituted consisting of senior officers of the Department of Telecommunications.

(5) A Telecom Commission was constituted on 6/4/1989 comprising a Chairman and four full-time Members : 1. Member (Production) 2. Member (Services) 3. Member (Technology) 4. Member (Finance) It short-listed 16 companies, 12 of which were eligible without any defect. However, in the case of 4 the Committee recommended condonation of certain defects. Those four were : 1. BPL Systems and Projects Limited 2. Mobile Telecommunication Limited 3. Mobile Telecom Services 4. Indian Telecom Limited Between 19-5-1992 and 27/5/1992 the recommendations were submitted to the Telecom Commission. The matter came up for discussion among the members of the Commission. On 27/5/1992 the Telecom Commission accepted the recommendations of the Technical Evaluation Committee. The Chairman recommended that the short-list of bidders, the recommendations of the Tender Evaluation Committee and the proposal for financial bids be placed before the Selection Committee at the earliest.

(6) IT requires to be noted, at this stage, that a Selection Committee also described as Apex/High-Powered Committee comprising the Principal secretary to the Prime Minister and three other Secretaries to the government of India had been set up by the Minister for final evaluation of the bid.

(7) MR B.R. Nair, a Member (Budget) of Telecom Commission came to be appointed as Member (Services) on 29/5/1992. It appears the Selection Committee met a number of times and discussed the matter with the Minister. He submitted an interim report on 16/7/1992. During this time the Committee not only de novo exercised but also modified the short-list prepared by the Technical Evaluation Committee and approved 14 companies. The Selection Committee also met the representatives of equipment manufacturers for the selection of the licensees. On 20/7/1992, the revised financial bid and the short-list approved by the Telecom Commission were put up before the Minister for approval. On 24/7/1992, further meetings of the Selection Committee were held and the financial bid document was revised. On 28/7/1992, the Selection Committee submitted its final report. Two bidders, namely, M/s Ashok Leyland Ltd. and M/s Vam Organics Ltd. were dropped from the short-list of 16 bidders. On 29/7/1992, Mr Nair was appointed as Director General of Telecommunications. He was authorised to exercise all powers of Telecom Authority under Section 3 of the Telegraph Act. The Minister approved the issue of financial bids with modification to the short-listed companies as recommended by the Selection Committee on 29/7/1992. The approval took place on 30/7/1992.

(8) ON 30/7/1992, the financial tenders were issued. It contained seven criteria which had been approved by the Selecti




































































































































































































































































































































































































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