RAJA LABOUR CONTRACT CO OPERATIVE SOCIETY LIMITED Vs. SUPERINTENDING ENGINEER KAKINDA EAST GODAVARI DIST

JUDGEMENT

(1.) The petitioners are the Labour Cooperative Societies registered under the provisions of A.P. Co-operative Societies Act, 1964. The members of these societies belong to Scheduled Castes (SCs), Scheduled Tribes (STs) and Vupparas. The Superintending Engineer, Roads and Buildings Circle, Kakinada, East Godavari District issued the Tender Notification No.S/HD/1999-2000 dated 2-7-1999 calling for sealed tenders for awarding the subject works. The works under Item Nos.1, 7, 11, 14, 26 and 28 are reserved for the SC, ST and Vaddera Vuppara Co-operative Societies. Having regard to this reservation made in favour of the above societies, the petitioners' societies are entitled to apply for the award of the contract in respect of item Nos. 1, 7, 11, 14, 26 and 28 works.

(2.) In this writ petition, the petitioners have questioned the validity of the prescription as regards the furnishing of the proof of liquid assets/credit facility or solvency certificate for the quantum of money prescribed under column 7, from the Banks.

(3.) Sri N. Subba Reddy, learned senior Counsel appearing for the petitioners would contend and highlight that the application of the above prescription in respect of the Vaddera Co-operative Societies should be held to be totally unreasonable and arbitrary. Elaborating this contention, Sri N. Subba Reddy would maintain that the Government having shown a discrimination by way of policy decision in favour of the above societies by reserving 1/3rd works, the Government is not justified in virtually taking away the benefit granted under the policy from the petitioners societies by subjecting them to the above prescription and these societies are financially incapable to fulfil the above prescription. That is the only contention of the learned senior Counsel.