TAHDCO CONTRACTORS ASSOCIATION Vs. PRINCIPAL SECRETARY TO GOVERNMENT

JUDGEMENT

(1.) The Tamil Nadu Adi Dravidar Housing and Development Corporation (shortly "TAHDCO") was formed by the Government of Tamil Nadu during 1974. It is a company registered under the Companies Act, 1956 (Central Act of 1956) with equity participation of both Central and State Government with the prime objective of executing various works for the benefit of Scheduled Caste/ Scheduled Tribe (shortly "SC/ST") people in the State of Tamil Nadu. TAHDCO has been undertaking construction schemes like building of houses, schools, hostels, Community Halls etc., for SC/ST people.

(2.) The Adi-Dravidar and Tribal Welfare Department (shortly "the AD&TW Department") of the Government of Tamil Nadu, issued an order in G.O.Ms.No.2116, Adi Dravidar and Tribal Welfare Department, dated 03.11.1989 providing construction works upto the limit of Rs.6,00,000/- (Rupees Six Lakhs only) to the Engineers of SC/ST community, based on nomination. The AD&TW Department issued another order in G.O.Ms.No.132, Adi Dravidar and Tribal Welfare (ADW-5) Department, dated 15.07.1997 to entrust all the construction works of TAHDCO to SC/ST contractors alone. The Government Order also states that the SC/ST contractors did not like nomination and demanded open tender system. Accordingly, open tender system was introduced in the said G.O.(Ms)No.132, entrusting work to the SC/ST contractors.

(3.) One of the non-SC/ST contractors challenged the said G.O.(Ms)No.132 by filing a writ petition in W.P.No.15483 of 1997 and obtained an order of interim stay. The Government moved an application for vacating the interim stay. This Court, on 23.02.1988, vacated the interim stay, providing detailed reasons.