LAWS(MPH)-2016-9-78

HOLOFLEX LTD Vs. STATE OF MP AND OTHERS

Decided On September 06, 2016
Holoflex Ltd Appellant
V/S
State of MP and Others Respondents

JUDGEMENT

(1.) In these writ petitions, the petitioners which are the companies engaged in manufacture and supply of security holograms and authentication solutions, both in private and public sectors, have assailed the validity of the condition number 2 and number 4 in the Notice Inviting Tenders dated 8.6.2016.

(2.) Admittedly, between the years 2006 to 2014 the Madhya Pradesh Laghu Udyog Nigam Limited (hereinafter referred to as the 'Nigam') invited tenders for supply of security holograms to authorised bottlers in the years 2006, 2008, 2011 and 2014. The petitioner was awarded contract as it was the lowest bidder.

(3.) The State Government with a view to ensure that spurious liquor is not sold in the State and to upgrade the technology for fixation of specification of hologram, constituted an internal committee on 25.4.2015, which was headed by Deputy Commissioner, Excise Indore. The Committee after deliberations with the departmental authorities, public representatives as well as taking into account the terms and conditions of the contract of other States opined that latest technology may be introduced with all checks and balances to ensure that there is no pilferage of public revenue. Thereafter, a pre-bid conference was held on 18.4.2016, which was attended by 13 bidders including the petitioners. The committee submitted its suggestions on 11.5.2016 which interalia provide that supplier should establish a plant to manufacture the holograms in the State itself, who should function under supervision of Excise Department so as to ensure that it is near impossible to replicate the hologram and no copy can be made of it, which in turn will ensure that there is no pilferage of public revenue. It was also noted that the States of Tamil Nadu and Andhra Pradesh have adopted similar measures.