LAWS(APH)-2016-9-64

STATE OF TELANGANA, REP., BY ITS PRL. SECRETARY, WOMEN AND CHILD WELFARE DEPARTMENT, TELANGANA SECRETARIAT Vs. M/S. SRI VENKATESWARA INDUSTRIES, MAHABOBNAGAR, MAHABOOBNAGAR DISTRICT, REP., BY ITS PROPRIETOR B. DAMODAR REDDY

Decided On September 26, 2016
State Of Telangana, Rep., By Its Prl. Secretary, Women And Child Welfare Department, Telangana Secretariat Appellant
V/S
M/S. Sri Venkateswara Industries, Mahabobnagar, Mahaboobnagar District, Rep., By Its Proprietor B. Damodar Reddy Respondents

JUDGEMENT

(1.) This appeal, under Clause 15 of the Letters Patent, is preferred against the order passed by the Learned Single Judge in W.P. No.24599 of 2016 dated 29.07.2016. The learned Government Pleader, appearing on behalf of the Learned Additional Advocate- General, submits that the Writ Petition was allowed even without giving the appellants herein an opportunity of filing a counter-affidavit, and in placing the facts which led to restricting the eligibility, for participation in the tender notice dated 16.07.2016, only to poultry farmers with NECC certification and in eliminating traders, such as the petitioners, from participating in the tender process. This submission of the Learned Government Pleader is well founded. While we were initially inclined to set aside the order under appeal on the ground that the Writ Petition was allowed without the appellants herein (respondents in the Writ Petition) being given an opportunity to file their counter-affidavit, and restore the Writ Petition to file to be heard by the Learned Single Judge, both the Learned Government Pleader and Sri D. Prakash Reddy, Learned Senior Counsel appearing on behalf of the respondent-writ petitioners, would submit that, in view of the urgency in having the dispute adjudicated, we should hear the Writ Petition itself. The order under appeal is accordingly set aside, W.A.No.751 of 2016 is allowed and W.P.No.24599 of 2016 is restored to file, and is being disposed of by this order.

(2.) The relief sought for in W.P.No.24599 of 2016 is to declare the action of the Project Director, District Women and Child Development Agency, Mahaboobnagar District (2nd respondent), in issuing e-tender notice dated 16.07.2016 inviting tenders, for supply of eggs to Anganwadi centres of 20 Integrated Child Development Scheme ( "ICDS ") projects in Mahaboobnagar District, restricting eligibility only to poultry farmers/associations with NECC certification, and eliminating other suppliers/traders like the petitioners from participating in the tender process as illegal, arbitrary, unreasonable, unfair, discriminatory, and in violation of Articles 14, 19(1)(g), and 21 of the Constitution of India. A consequential direction is sought to the respondents to allow the petitioners to participate in the tender process by supplying, receiving, and considering the tender schedule submitted by the petitioners, after declaring them as eligible on par with the poultry farmers, without insisting on NECC certification.

(3.) In the affidavit, filed in support of the Writ Petition, it is stated that the tender notification dated 16.07.2016, which restricts eligibility only to poultry farmers/associations with National Egg Coordination Committee ( "NECC ") certification, and eliminates other suppliers/traders like the petitioners from participating in the tender process, is arbitrary and violative of Articles 14 and 19(1)(g) of the Constitution of India; the petitioners are engaged in the supply of eggs to various persons/firms, including to government bodies in Mahaboobnagar District, for the last several years; the petitioners have been supplying eggs to the Anganwadi Centres of 20 ICDS projects pursuant to the proceedings dated 15.02.2014; on expiry of the contract period on 31.12.2014, a notification was issued on 07.01.2015 for supply of eggs to the Anganwadi Centres of 20 ICDS projects, while restricting the entry to the poultry farmers with NECC certification alone; the petitioners questioned the same by filing W.P. No.533 of 2015, and obtained an interim order on 21.01.2015, whereby their tenders were directed to be received; by proceedings dated 09.12.2015 work orders, to supply eggs to the Anganwadi centres, were issued to them till the tender process resumed; they have been supplying eggs from Jan., 2016 onwards; the respondents, with a view to create a ground to prevent them from competing in the tender process, decided to issue a fresh tender notification; the tender notification stipulates registration with the NECC, which is not a statutory body but is a society registered under the Societies Registration Act; NECC has been established to protect the interest of the poultry farmers and regulate the price of eggs so as to prevent any loss to the farmers; the condition imposed in the tender notification, excluding traders such as the petitioners and those who are not members of the NECC, results in discrimination between members of the NECC and those who are not its members; as the State permits business or trade in poultry production, every poultry trader has an equal right to carry on the trade, and the State cannot discriminate between parties qualified to carry on trade; free trade and competition ensures the best quality at the most reasonable prices to the consumers; the action of the respondents is an abuse of power, besides being arbitrary; the petitioners are supplying eggs for the last five years, and eliminating them from the process of selection is unjust and unreasonable; and the petitioner should be allowed to participate in the tender process.