Case Note & Summary
The petitioners, Bharat Conductors Pvt. Ltd. and its authorised signatory Tarachand Bhandari, filed a writ petition before the Bombay High Court at Goa challenging an order dated 20/5/2016 issued by the Chief Electrical Engineer (respondent No.4) in favour of Traco Cable Company Limited (respondent No.5). The petitioners contended that the Government of Goa had issued a preferential purchase scheme for Small Scale Industrial Units, under which no Government Department could purchase electrical conductors without a No Objection Certificate (NOC) from the Goa Handicrafts, Rural and Small Scale Industries Development Corporation Ltd. (respondent No.2). The petitioner No.1 was registered as a Small Scale Industrial Unit in Goa and claimed preference in purchase by the State Government. The petitioners sought quashing of the impugned order and a direction to the respondents to consider their tender on merits by opening their technical and financial bids. The court heard arguments from Mr. D. Pangam for the petitioners, Mr. S. D. Lotlikar, Advocate General for respondents No.1, 3 and 4, and Mr. V. K. Daniel for respondent No.5. The court found that the impugned order was issued in violation of the preferential purchase scheme, as no NOC from respondent No.2 was obtained before awarding the tender to respondent No.5, which was not a local unit. The court quashed the impugned order and directed respondents No.1, 3 and 4 to consider the petitioners' tender on merits in accordance with the scheme. The petition was allowed with no order as to costs.
Headnote
A) Administrative Law - Preferential Purchase Policy - NOC Requirement - State Government's Preferential Purchase Scheme for Small Scale Industrial Units - Clause (2) of the scheme mandates that no Government Department can purchase electrical conductors without NOC from the Goa Handicrafts, Rural and Small Scale Industries Development Corporation Ltd. - The court held that the impugned order dated 20/5/2016 issued by respondent No.4 in favour of respondent No.5 was contrary to the scheme and quashed it, directing reconsideration of petitioners' tender (Paras 3-5).
Issue of Consideration
Whether the State Government can ignore its own preferential purchase scheme requiring NOC from the designated corporation before purchasing electrical conductors from non-local units, and whether the impugned order awarding tender to respondent No.5 without such NOC is valid.
Final Decision
The court quashed the impugned order dated 20/5/2016 issued by respondent No.4 in favour of respondent No.5 and directed respondents No.1, 3 and 4 to consider the tender of the petitioners on merits in accordance with the preferential purchase scheme. The petition was allowed with no order as to costs.
Law Points
- Preferential purchase policy
- Small Scale Industrial Units
- NOC requirement
- Tender process
- Judicial review of administrative action
