BHASKAR SHRACHI ALLOYS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) . SDIC Inserts (hereinafter referred to as 'Goods', for short) are purchased in huge quantities by the Indian Railways exclusively. This product otherwise has no market. The manufacturers of these Goods, therefore, depend entirely on the Indian Railways for sale of this product. Railways purchase the Goods from various vendors through the process of annual tenders. As per Clause 6.1 and 6.2 of the said Special Conditions of Contract a supplier/vendor intending to supply for the first time has to qualify and is initially given only an educational/development order for a small quantity out of which an initial quantity of 20,000 pieces has to be inspected and passed by Railway Research Design and Standards Organisation (hereinafter referred to as RDSO, for short), respondent no.3 herein. Upon passing/approval by RDSO of first 20,000 pieces, an inspection certificate is granted to a vendor confirming, its approval as vendor of Goods. On becoming a "RDSO Approved Firm" it becomes entitled to be placed with bulk orders. The balance quantity above 20,000 pieces is inspected by RITES.

(2.) . As would be noted in detail hereinafter, the respondent No.1 issued Notice Inviting Tender (NIT) No.CS-146 of 2001 for purchase of 275 lakhs pieces of the Goods. Against this tender, the petitioner offered to supply 40 lakh pieces. When the tenders were opened on 16/03/2001 the offer of the petitioner was found to be the lowest (L-1) - the rate quoted was Rs.27.75p per piece amongst the RDSO approved firms. The next higher bidder (L-2) offered a rate of Rs.27.95p per piece. As RDSO approved firm, the petitioner could get the Order of entire 40 lakh pieces offered by it at 'L-1' rates. However, the petitioner being treated as unapproved firm was given an Order of only 20,000 pieces. It is in these circumstances the petitioner approached this Court and claims that it should be treated as a RDSO approved firm and on that basis the Railways should place an Order of 40 lakh pieces.

(3.) . The factual matrix as stated in the Petition leading to this controversy is as under:-