{"id":114542,"date":"2008-06-20T00:00:00","date_gmt":"2008-06-19T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/shree-vs-union-on-20-june-2008"},"modified":"2018-12-24T06:40:19","modified_gmt":"2018-12-24T01:10:19","slug":"shree-vs-union-on-20-june-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/shree-vs-union-on-20-june-2008","title":{"rendered":"Shree vs Union on 20 June, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Shree vs Union on 20 June, 2008<\/div>\n<div class=\"doc_bench\">Bench: Mohit S. D.H.Waghela, D.H.Waghela<\/div>\n<pre>  \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n \n \n\n\n\t \n\nSCA\/3262\/2008\t 5\/ 5\tORDER \n \n\n\t\n\n \n\n \n\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 3262 of 2008\n \n\n \n \n==========================================\n \n\nSHREE\nDECORATORS - Petitioner(s)\n \n\nVersus\n \n\nUNION\nOF INDIA THRO' CHIEF WORKS MANAGER &amp; 1 - Respondent(s)\n \n\n========================================== \nAppearance\n: \nMR KISHOR M\nPAUL for Petitioner(s) : 1, \nMR BIPIN I MEHTA\nfor Respondent(s) : 1, \nMS KJ BRAHMBHATT for Respondent(s) : 2, \nMS\nVARSHA BRAHMBHATT for Respondent(s) :\n2, \n==========================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE M.S.SHAH\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.H.WAGHELA\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 20\/06\/2008 \n\n \n\n \n \nORAL\nORDER<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE M.S.SHAH)<\/p>\n<p>\t\tWhat<br \/>\nis challenged in this petition under Article 226 of the Constitution<br \/>\nis the decision of the Western Railway, Dahod  awarding contract for<br \/>\npainting 31 railway locomotives to respondent No.2 for the amount of<br \/>\nRs.53,31,781\/- as against the estimated cost of Rs.49,53,955\/-. The<br \/>\nrailways had issued a tender notice in August, 2007 inviting tenders<br \/>\nfrom parties fulfilling the eligibility criteria indicated in para<br \/>\n3.11 of the tender notice. The following eligibility criteria are<br \/>\nrelevant for the purpose of present petition:\n<\/p>\n<p>\t&#8220;3.11.00<br \/>\nEligibility Criteria\/Credential:\n<\/p>\n<p>\t02.\tShould<br \/>\n  have  completed   at\tAt  least   one  similar  single <\/p>\n<p>\t\tthe<br \/>\ntime of opening of tender,\twork for a minimum value of <\/p>\n<p>\t\tin<br \/>\n the  last 3  financial years,\t35%  of   advertised   tender  <\/p>\n<p>\t\t(<br \/>\ni.e.  current  year   &amp;  three\tvalue of work.&#8221;\n<\/p>\n<p>\t\tprevious<br \/>\n financial years)\t\t<\/p>\n<p>2.\t\tThe<br \/>\nrailways found that the present petitioner was not eligible and that<br \/>\nthe price quoted by the other party, i.e. respondent No.2 herein,<br \/>\nbeing Rs.59,48,900\/- was too high. The railways, therefore, issued a<br \/>\nsecond tender notice with the following eligibility criteria:\n<\/p>\n<p>\t&#8220;3.11.00<br \/>\nEligibility Criteria\/Credentials:\n<\/p>\n<p>\t(A)<br \/>\nEligibility Criteria:-\n<\/p>\n<p>1)<br \/>\n Tenderer should have completed at least one similar single work for<br \/>\na minimum value of 35% of advertised tender value of work at the time<br \/>\nof opening of tender, in the last three financial years (i.e. current<br \/>\nyear &amp; three previous financial years).\n<\/p>\n<p>Note:\n<\/p>\n<p>Similar work &#8211; &#8220;Polyurethane painting of Locomotives\/ EMUs\/<br \/>\nMEMUs\/DEMUs\/Rilway coaches&#8221;&gt;<\/p>\n<p>2)<br \/>\n  Total contract amount received by tender during the last 03 years<br \/>\nshould be a minimum of 150% of advertised tender value of work. For<br \/>\nthis, tenderer should submit attested copy of audited balance sheet<br \/>\nduly certified by Chartered Accountant or Certificate issued from<br \/>\nemployer\/client.&#8221;\n<\/p>\n<p>3.\t\tOn<br \/>\nthe second occasion also, the petitioner was considered to be<br \/>\nineligible and the price quoted by respondent No.2 being<br \/>\nRs.53,37,721\/- was found to be within reasonable limits. Accordingly,<br \/>\nthe railways decided to award the contract to respondent No.2.\n<\/p>\n<p>4.\t\tMr.Kishor<br \/>\nPaul, learned counsel for the petitioner, submits that the petitioner<br \/>\nis an experienced party in this field and that the certificate dated<br \/>\n27.6.2007 of the Gujarat Energy Transmission Corporation Ltd. also<br \/>\nindicates that the party had satisfactorily carried out the work of<br \/>\npainting special towers of 123 meters height applying polysulphide<br \/>\nbase apoxy paint.  It is also submitted that the price quoted by the<br \/>\npetitioner was Rs.39,62,164\/- and, therefore, the decision of the<br \/>\nrespondent authority awarding the contract to respondent No.2 is<br \/>\narbitrary and contrary to public interest.\n<\/p>\n<p>5.\t\tMr.Bipin<br \/>\nMehta, learned Standing Counsel for the Railways, has opposed the<br \/>\npetition and submitted that, when the petitioner was ineligible, the<br \/>\npetitioner has no right to challenge the decision of the authority<br \/>\nawarding the contract to respondent No.2. It is submitted that the<br \/>\nwork of painting locomotives and railway coaches is a specialized job<br \/>\nand, therefore, the petitioner cannot be considered to be eligible<br \/>\nfor the contract work when he has admittedly not done such work. It<br \/>\nis submitted that the petitioner was not eligible even under the<br \/>\nfirst tender notice because he had not  done such painting work of<br \/>\ngovernment controlled vehicles.\n<\/p>\n<p>6.\t\tMs.Kalpana<br \/>\nBrahmbhatt, learned counsel for respondent No.2, has also supported<br \/>\nthe decision of the authority and submitted that the contract was<br \/>\nawarded on 15.03.2008 and respondent No.2 has already started<br \/>\nexecuting the work. It is submitted that any intervention by this<br \/>\nCourt at this stage would create innumerable complications for the<br \/>\nsecond respondent who has already employed labour and material for<br \/>\ncarrying out the contract work.\n<\/p>\n<p>7.\t\tIn<br \/>\nthe rejoinder, Mr.Paul, for the  petitioner, submits that, if those<br \/>\nwho have experience of painting locomotives and railway coaches are<br \/>\nto be given such contract, only the existing contractors with the<br \/>\nrailways would continue to have the monopoly and other experienced<br \/>\nparties, like the petitioner, would never be able to enter the<br \/>\ncompetition.\n<\/p>\n<p>8.\t\tApropos<br \/>\nthe above submissions, Mr.Bipin Mehta, learned Standing Counsel for<br \/>\nthe Railways, points out from page 139 that the eligibility criteria<br \/>\nprescribed in the tender notices are only applicable to the tenders<br \/>\ncosting above Rs.10 lakhs and that such conditions are not prescribed<br \/>\nfor tenders costing upto Rs.10 lakhs. It is submitted that it is open<br \/>\nto the petitioner to submit tenders in response to notices for<br \/>\ntenders costing upto Rs.10 lakhs.\n<\/p>\n<p>9.\t\tHaving<br \/>\nheard learned counsel for the parties and considering the rival<br \/>\nsubmissions, admittedly, the petitioner does not possess  the<br \/>\nexperience as prescribed either in the first tender notice or in the<br \/>\nsecond tender notice. This court is ordinarily not to sit in appeal<br \/>\nover the decision of the authority in prescribing eligibility<br \/>\ncriteria and this Court would not interfere with such decision,<br \/>\nexcept where prescription of eligibility criteria is shown to be<br \/>\nactuated by mala fides and arbitrariness.  In the facts and<br \/>\ncircumstances of the case, it is not possible to attribute  any such<br \/>\nvice to the impugned decision of the respondent authority. The<br \/>\ncontention that prescription of such eligibility criteria would only<br \/>\nperpetrate  the monopoly of existing contractors cannot be accepted<br \/>\nbecause, as pointed out by learned Standing Counsel for Railways, the<br \/>\nparties desiring to submit tenders for such work costing  upto Rs.10<br \/>\nlakhs are not required to fulfill the eligibility criteria prescribed<br \/>\nfor the tender works above Rs.10 lakhs.\n<\/p>\n<p>10.\t\tIn<br \/>\nview of the above discussion and considering the fact that execution<br \/>\nof the contract work awarded to respondent No.2 is already commenced<br \/>\nand looking to  importance and nature of the work involved where<br \/>\ntime-bound execution of contract is necessary in public interest, we<br \/>\ndo not consider this to be a fit case to make any further probe into<br \/>\nthe decision making process under challenge in this petition.<br \/>\nPetition is, therefore, dismissed.  Notice is discharged with no<br \/>\norder as to cost.    It is clarified that dismissal of this petition<br \/>\nmay not be construed as approval of the stand of respondent authority<br \/>\nin prescribing the eligibility criteria and it is open for the<br \/>\npetitioner to make suitable representation to the competent authority<br \/>\nin this behalf.\n<\/p>\n<pre>\t\t\t\tSd\/-\t\t\t\t\tSd\/-\n \n\n(\nM.S.Shah, J.)   ( D.H.Waghela, J.)\n \n\n(KMG\nThilake)\n\n\n\n<\/pre>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Shree vs Union on 20 June, 2008 Bench: Mohit S. D.H.Waghela, D.H.Waghela SCA\/3262\/2008 5\/ 5 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 3262 of 2008 ========================================== SHREE DECORATORS &#8211; Petitioner(s) Versus UNION OF INDIA THRO&#8217; CHIEF WORKS MANAGER &amp; 1 &#8211; Respondent(s) ========================================== Appearance : MR [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-114542","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shree vs Union on 20 June, 2008 - Free Judgements of Supreme Court &amp; 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