SANJAY TRANSPORT SERVICE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) RULE. Rule made returnable forthwith. Heard parties. Prelude Vijay Kumar Gupta, sole proprietor of M/s. Sanjay Transport service, has filed this petition under Article 226 of the Constitution of india challenging the legality, propriety and validity of the contract awarded to M/s. Lirin Roadlines Pvt. Ltd. , respondent No. 2, vide government Resolution No. WPP 2003/cr-177/yss2 dated 1st september, 2006. This contract, according to the petitioner, has been awarded through private negotiations without inviting tenders and in an arbitrary manner. Such awarding of contract is unconstitutional, violative of principles of governance and contrary to the constitutional mandate contained in Article 299 of the Constitution of India. It denies fair competition amongst similarly placed persons who hold similar qualifications like respondent No. 2 for performing the function to lift water from the Government owned wells and distribute the same at a much higher amount than what has been demanded by respondent no. 1 from respondent No. 2, thus causing huge loss to the exchequer and is colourable exercise of power. Therefore, he has prayed for quashing and setting aside the Government Resolution dated 1st september, 2006.

(2.) FACTS in brief:

(3.) AT the time of hearing in the Civil and High Court mumbai the following points were mainly raised for and on behalf of the said society. 1) That the said society has not violated any terms and conditions of the said agreement. 2) The society is using more than one pump since long and now no increase is made in the same by the society and hence there is no breach of term No. 9. Both the Courts have rejected the said points. Specially the said contract is made between the government and the Contractors for drawing off the water as the said contract is totally of commercial nature, both the Courts has given their opinion that the action taken for cancelling the said contract by giving the two months notice is proper. In result, therefore, no stay order is granted by the said Courts.