High Court Patna High Court - Orders

M/S Milage Vanijya Pvt. Ltd. vs The Bihar State Electricity Bo on 14 November, 2011

Patna High Court – Orders
M/S Milage Vanijya Pvt. Ltd. vs The Bihar State Electricity Bo on 14 November, 2011
                   IN THE HIGH COURT OF JUDICATURE AT PATNA
                        Civil Writ Jurisdiction Case No.19674 of 2011
                    M/S Milage Vanijya Pvt. Ltd., a Company incorporated under the
                    provisions of the Companies Act, 1956 having its Head Office at 408,
                    Ashiyana Tower, Exhibition Road, P.S. Gandhi Maidan, District Patna
                    through one of its Directors, Sumit Agrawal, S/o Shri Ashok Agrawal,
                    Resident of Flat No. 202, Amba Residency, East Boring Canal Road, P.S.
                    Buddha Colony, District Patna.
                                                                         ... Petitioner
                                             Versus
                    1. The Bihar State Electricity Board, Vidhyut Bhawan, Bailey Road, Patna
                        through its Chairman
                    2. The Chairman, Bihar State Electricity Board, Vidhyut Bhawan, Bailey
                        Road, Patna
                    3. The Electric Superintending Engineer, Purchase, Vidhyut Bhawan,
                        Bailey Road, Patna.
                                                                         ... Respondents
                                                      --------
                    For the Petitioner :             M/s S. D. Sanjay &
                                                        Gautam Kejriwal, Advocates
                    For the Respondents:             Mr. Anand Kumar Ojha, Advocate
                                                      --------


02/   14.11.2011                       Let defect no.1 of the stamp report dated 08.11.2011 be

                       ignored.

2. Heard learned counsel for the petitioner and learned

counsel for the respondents.

3. This writ petition has been filed by the petitioner for

the following reliefs :-

(a) For quashing the Tender Notice NIT No.
174/PR/BSEB/2011 to be opened on 15.11.2011 for
purchase of 20 lacs number of Polycarbonate Seal
Bit with Stainless Steel Sealing Wire as the same has
been issued in contravention of statutory requirement
laid down in the Central Electricity Authority
(Installation and Operation of Meters) Regulation,
2006 and hence being wholly illegal and without
jurisdiction;

(b) For quashing the Tender Notice NIT No.
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174/PR/BSEB/2011 to be opened on 15.11.2011 for
purchase of 20 lacs number of Polycarbonate Seal
Bit with Stainless Steel Sealing Wire on the ground
that the Tender Notice by doing away with the
requirements of purchase of only Patented Seal Bids
from the manufacturers which have official right to
manufacture the Seal Bids is wholly arbitrary and
discriminatory; and

(c) For issuance of a writ of Mandamus directing the
Respondent Electricity Board to include the
requirement that the Manufacturer must have the
official right to manufacture Seal Bids as Patented
Seal Bids, and for any other relief(s) for which the
petitioner may legally be found entitled to in the
facts and circumstances of the present case.

4. The grievance of the petitioner is that the mandatory

requirements have not been fulfilled in the impugned notice inviting

tender as it requires that only Patented Seal Bids from the

manufacturers, who have official right to manufacture the Seal Bids,

shall be used, but doing away with the said clause in such NIT will

open flood gates for applicants, who were not qualified for the same

according to law. He further states that other States in the country as

well as this State of Bihar also, had earlier been regularly including the

said clause in their NITs as per law but only in the impugned NIT the

said mandatory clause had not been included with some ulterior

motives.

5. On the other hand, learned counsel for the

respondent-Bihar State Electricity Board ( hereinafter referred to as

`the BSEB’ for the sake of brevity) and its authorities files a counter
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affidavit and vehemently opposes the contention of learned counsel

for the petitioner and submitted that lacs of such meters are required

urgently for the consumers and they cannot be installed without

Polycarbonate Seals.

6. He further states that C.W.J.C. No. 15097 of 2011

had been filed by one of the applicants of the earlier NIT, namely, M/s

Power Centre, in which the said clause was included and this Court

passed an interim order dated 16.09.2011 restraining the authorities

from issuing any Letter of Intent in favour of any one of the tenderers

in accordance with the said NIT till further orders. Hence he submits

that in view of the aforesaid interim order, care has been taken in the

instant NIT.

7. Learned counsel for the respondents further avers

that this is a very nascent stage and it is premature for the petitioner to

approach this Court. He also argued that the petitioner is neither the

manufacturer nor an applicant to the impugned NIT and hence there is

no occasion for it to file this writ petition.

8. Considering the averments made by learned counsel

for the parties and the materials on record, it is quite apparent that

notification dated 17.03.2006 was published in the Gazette of India,

Extraordinary, Part III, Section IV by the Central Electricity

Authority, New Delhi in exercise of powers conferred by sub-section

(1) of section 55 and clause (e) of section 73 read with sub-section (2)

of section 177 of Electricity Act, 2003 (hereinafter referred to as `the

Act’ for the sake of brevity), under Clause 12 of which sealing
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arrangements have been provided, which reads as follows:-

(1) Sealing Arrangements

(a) All meters shall be sealed by the manufacturer at its
works. In addition to the seal provided by the
manufacturer at its works, the sealing of all meters
shall be done as follows at various sealing points as per
the standards given in the Schedule:

(i) Sealing of interface meters, shall also be done by
both the supplier and the buyer.

(ii) Sealing of consumer meters shall be done by the
licensee.

(iii) Sealing of energy accounting and audit meters
shall be done by the licensee or generating
company as the case may be.

(b) A tracking and recording software for all new seals
shall be provided by the manufacturer of the meter so
as to track total movement of seals starting from
manufacturing, procurement, storage, record keeping,
installation, series of inspections, removal and
disposal.

(c) Seal shall be unique for each utility and name or
logo of the utility shall be clearly visible on the seals.

(d) Only the patented seals (seal from the manufacture
who has official right to manufacture the seal) shall be
used.

(e) Polycarbonate or acrylic seals or plastic seals or
holographic seals or any other superior seal shall be
used.

(f) Leas seals shall not be used in the new meters. Old
lead seals shall be replaced by new seals in a phased
manner and the time frame of the same shall be
submitted by the licensee to the Appropriate
Commission for approval.

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9. Since the said notification was made by the

appropriate authority under sections 55, 73 and 177 of the Act, it has

statutory force and has to be followed by all the Boards and licensees

of the country including the BSEB. Sub-clause (d) of Clause 12 of the

said notification specifically provides that only the patented seals (seal

from the manufacturer, who has official right to manufacture the seal)

shall be used.

10. From Annexures 3 series to the writ petition, it is

quite apparent that the Boards and licensees of other States of the

country, namely, Punjab, Agartalla, Madhya Pradesh, Orissa, West

Bengal, Kerala, Rajasthan etc. have been issuing NITs with the

aforesaid provision. The BSEB had also issued NIT No. 160 of 2011

(Annexure 5) including the said requirement and even after the

issuance of the impugned NIT No. 174 of 2011 (Annexure 7) they had

issued another NIT No. 176 of 2011 (Annexure 9), in which again the

said requirement is included but only in the impugned NIT No. 174 of

2011 (Annexure 7) the said provision has not been included.

11. So far C.W.J.C. No. 15097 of 2011, in which

interim order dated 16.09.2011 was passed, is concerned, it is stated

by learned counsel for the parties that NIT No. 160 of 2011, which

was under challenge in that writ petition, was cancelled as none of the

parties were found to be qualified, whereafter, the said writ petition

has been withdrawn. Hence the interim order passed in the said case

cannot legally have any bearing on this case.

12. So far the point raised by the respondents that the
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petitioner was neither a manufacturer nor an applicant is concerned,

the petitioner has specifically stated in his writ petition and has also

annexed the relevant papers and certificates (Annexures 1 and 2),

which confirmed that the petitioner was the authorized

distributor/dealer/executing agent of M/s Safcon Seals Pvt. Ltd., 3-B,

Camac Street, Kolkata, which is, admittedly, the manufacturer of

Polycarbonate Meter Security Seals, and hence in the said capacity

and on behalf of the manufacturer, it has filed this writ petition.

13. Furthermore, the date of filing tender has not yet

expired as the last date of filing tender has been fixed by the impugned

NIT as 15.11.2011 by 03.00 PM and any interested manufacturer

including Safcon Seals Pvt. Limited is at liberty to respond to the

impugned NIT .

14. Considering the aforesaid facts and circumstances

as well as the arguments of learned counsel for the respective parties

in its entirety, this writ petition is disposed of with a direction to

respondent-authorities of the BSEB that while deciding the tender of

the applicants for the impugned NIT No. 174 of 2011 they must keep

in mind the statutory provisions as detailed in the notification of the

Central Electricity Authority dated 17.03.2006 (Annexure 2)

including the eligibility Clause 12(1)(d) thereof.

MPS/                                 (S.N.Hussain, J.)