Case Note & Summary
The petitioner, Girjamata Labour Cooperative Society Ltd., challenged the Government Resolution dated 24.4.2015 issued by the State of Maharashtra, which mandated an e-tender process for allotment of contracts to Labour Cooperative Societies for works above Rs. 3,00,000/-. The petitioner, a labour cooperative society consisting of labourers from Kannad, Aurangabad, argued that the resolution was arbitrary, discriminatory, and contrary to the concessions granted since 1948, particularly the Government Resolution dated 30.3.1979 which laid down a different procedure. The petitioner contended that the e-tender process would deprive them of work and affect their livelihood. The respondents, represented by the State, argued that the policy was introduced to ensure transparency and efficiency in public works, and that concessions are not absolute rights. The court, after hearing both sides, held that the Government has the power to modify policies in public interest, and the e-tender process applies uniformly to all societies, thus not violating Article 14. The court dismissed the petition, upholding the Government Resolution.
Headnote
A) Administrative Law - Government Policy - Concessions to Labour Cooperative Societies - The Government Resolution dated 24.4.2015 requiring e-tender process for contracts above Rs. 3,00,000/- is not arbitrary or discriminatory. Concessions granted earlier are not vested rights and can be modified by the Government in public interest. The policy applies uniformly to all Labour Cooperative Societies. (Paras 1-10) B) Cooperative Societies - Labour Cooperative Societies - E-Tender - The court held that the Government has the power to change the mode of allotment of contracts to ensure transparency and efficiency. The e-tender process does not violate any fundamental rights of the petitioner. (Paras 5-10) C) Constitutional Law - Article 14 - Reasonable Classification - The classification of contracts above Rs. 3,00,000/- for e-tender is reasonable and based on intelligible differentia. It does not violate Article 14 of the Constitution of India. (Paras 8-10)
Issue of Consideration
Whether the Government Resolution dated 24.4.2015 mandating e-tender process for allotment of contracts above Rs. 3,00,000/- to Labour Cooperative Societies is arbitrary, discriminatory, and violative of the rights of the petitioner society.
Final Decision
The court dismissed the writ petition, upholding the Government Resolution dated 24.4.2015. No order as to costs.
Law Points
- Concessions granted to Labour Cooperative Societies are not vested rights
- Government can modify policy in public interest
- E-tender process promotes transparency and efficiency
- No discrimination if policy applies uniformly to all societies
