SIEMENS INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Mandamus has been sought by the Siemens India Limited thereby directing the respondent Union of India to allow full "cash assistance" and "replenishment benefits" in respect of contract placed on them by the Municipal Corporation of Greater Bombay for supply and installation of electrical equipment under the IDA loan The benefits have been claimed with effect from the date of the submission of tender till date of final execution of contract. Directions have also been sought to quash or nullify the effect of notifications dated 6/12/1975 and 5/11/1979 whereby government notified that the benefits would be applicable prospectively and not retrospectively.

(2.) In order to appreciate the challenge raised, we may have a glance to the facts of this case. Government of India announced benefits under the Replenishment Scheme including cash assistance for encouraging supply of indigenously manufactured goods to Indian buyers to enable them to obtain indigenously the requisite goods at an internationally comparable price. The Scheme was in fact promulgated to enable the indigenously established manufacturers to compete with international manufacturers situated outside India in order to prevent the import of the said goods into India and thereby to save large amount of foreign exchange, Therefore the incentives.

(3.) That the petitioner carried on business dealing, in manufacturing, supply and installation of electrical machinery, plants and their components and accessories etc. The Bombay Municipal Corporation invited global tenders for supply of electrical equipments required for their Bhatsai water Supply Project. This project was being financed through an IDA loan. The tenders comprised of supply and erection of various electrical equipments. The project was to augment the supply of water to Greater Bombay. Petitioners submitted offers against tender enquiries on 7/03/1975. According to petitioner he quoted lower price because while quoting prices he took into account the monetary value of all the export incentives including cash assistance to be available as per the then existing policy. Petitioner to be sure of it wrote a letter on 12th April,1975 seeking Government's confirmation that the "cash assistance" as per the rates then prevailing would be made available on registering the contract as per the policy of the Government. He was informed vide letter dated 23.4.1975 that the benefits as available to exports against the registered contracts would be available to him as well. The offer/ tender of the petitioner was accepted by the Bombay Municipal Corporation on 25/08/1975. As per the procedure laid down in the circular petitioner was required to register the contract with the State Bank of India. He accordingly registered his contract with State Bank of India on 23/09/1975 i.e. within the prescribed period. From 1/04/1975 the rate of "cash assistance" were drastically reduced by the Government, therefore, petitioner sought confirmation from the Engineering Export Promotion Council about the export benefits. The said Council confirmed vide letter dated 25/10/1975 that IDA contracts would qualify for grant of cash assistance with other facilities as per the scheme of registration of contracts. The Engineering Export Promotion Council vide notification dated 6/12/1975 intimated that the date of submission of the tender would be taken as the crucial date for determining the rate of cash assistance provided there was no price variation between the date of submission of tender and acceptance of the same.