DE NORA INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The challenge in this writ petition by De Nora India Limited (DNIL) [formerly known as Titanor Components Limited (TCL)] is to an order dated 12th August 2010 passed by the Department of Commerce (DOC) (Supply Division) in the Ministry of Commerce and Industry (MOCI), Government of India partly allowing the appeal of DNIL and upholding the order dated 22nd February 2010 by the Director General of Supplies and Disposals (DGS&D) banning DNIL from dealing with all the departments/ministries/offices of the Government of India but reducing the period of ban from five years to a period of one year operative from 22nd February 2010 and in relation only to tender notices of the DGS&D. Factual background

(2.) DNIL has its registered office in Goa and is in the business of manufacture of various high end technology products including, electro chlorinators, which are used to generate onsite chlorine for disinfection of water. DNIL claims that it is a pioneer in introducing the technology for drinking water purification and is a leading manufacturer of models SEACLOR MAC 50S and SEACLOR MAC 50R.

(3.) Pursuant to a tender enquiry floated by the DGS&D for the supply of Batch Type Sodium Hypochlorite Generating System, the Petitioner submitted its bid for the supply of different models of SEACLOR MAC. It is stated that while filing the performance statement and statement of supplies for the financial year 2002-03 of all SEACLOR MAC electro chlorination systems manufactured and supplied by it, the Petitioner furnished details of an earlier Purchase Order dated 24th December 2002 placed on it by the Northern Railway (NR). It is stated that in accordance with a circular dated 20th June 2000, the MOCI undertook an elaborate cost study through the Deputy Director (Costs) of the product offered by the Petitioner, which was the sole bidder. It is stated that the officials of the MOCI undertook to visit the Petitioners manufacturing unit and recommended the Petitioners bid for acceptance. The MOCI undertook a review of cost analysis and also a second cost study which was concluded some time before 5th October 2005.