J S CONTINENTAL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners M/s J.S. Continental Ltd. & Ors. in Civil Writ Petition No. 7602/99 are seeking inter alia a direction, to the respondents not to engage more than 6750 truck tankers pursuant to the lender. Further, it is prayed that respondents be directed to engage all the truck tankers at the same rate. Priority is also claimed in loading and unloading of the truck tankers of the petitioners.

(2.) Capt.Vijay Malik & Others, petitioners in Civil Writ Petition No. 359/2000, are also seeking a direction to the respondents 2 to 4 to accept the tenders of all the bidders, starting from the lowest till 6750 number of truck tankers arc taken on hire and not to accept any lender beyond the number of 6750 truck tankers. A direction is also sought that the existing tenderers should not be given priority overlooking the claims of tenderers who have offered to fabricate and provide tankers at lower rates. Alternatively, a direction is sought that respondents 2 to 4 should give priority of loading and unloading, route preference and to ensure 100% utilisation of the truck tankers offered at lower rates before utilising the tankers offered at higher rates.

(3.) The facts giving rise to these writ petition may be briefly noted: (i) M/s. Indian Oil Corporation Limited, M/s. Bharat Petroleum Corporation Ltd. and M/s. Hindustan Petroleum Corporation Ltd. respondents 2 to 4 respectively, invited tenders for the bulk LPG Transportation Contract, viz. Tender Nos. LPG/LOG9 (NR)99, LPG/LOG/9 (WR)99, LPG/LOG/9 (SR)99 and LPG/LOG/9 (ER)99. Bids were invited from LPG truck owners and corporations, owners and distributors lor award of separate contracts for road transportation of bulk LPG for a period of two years with option to extend, for a further period of one year. The tender specified the sources from where the bulk LPG was to be transported to the refineries of the respondents in the regions and zones indicated. (ii) The crux of the controversy in the writ petitions emanates from the stipulation in the tender, viz, "estimated tank-truck requirement on account of Industry during the period of operation is approx.6750 nos. However, this number would depend on our requirement and capacity of Tank-Trucks offered." Respondent corporations also reserved the liberty to require the contractors to divert and operate the tank trucks from any loading base. Provision was also there for escalation and descalation of rates. The unit cost calculation was worked out, taking the average capacity of tank trucks at l5 MT.