Dismissed

Sri Lakshmi Offset Printers and Binders v. the State of Ap

Andhra Pradesh HC12 Feb 2024WP/3534/2024

Case brief

AI extract

What is this about?

The High Court dismissed a writ petition challenging a tender notice for printing school textbooks. Petitioners argued the condition requiring 10 crore turnover and independent paper procurement was arbitrary. The court held that enhancing government capability in economic activity does not create vested rights and the decision was in public interest.

What did the court decide?

The writ petition was dismissed without costs, though petitioners remain at liberty to participate if eligible.

Sri Lakshmi Offset Printers and… — Public Procurement and Tenders | Andhra Pradesh HC (2024)

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S IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI_

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(Special Original Jurisdiction)

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TUESDAY, THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SMT JUSTICE V.SUJATHA ^

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WRIT PETITION NO: 3534 OF 2024

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Between:

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Sri Lakshmi Offset Printers And Binders, Rep. by Its Proprietor A.Prathap Chand, S/o. Rama Rao, aged about 56 years, R/o. Surampalli, Krishna District.

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Elite Flexo, Rep. by Its Proprietor K.V.Rao, S/o.Jagan Mohan Rao aged about 42 years, R/o. Khamma Seshaiah Ground, Etukuru Road, Guntur, Guntur District.

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...Petitioners

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The State of Andhra Pradesh, Through the Principal Secretary Department of School Education, Secretariat, Velagapudi, Amaravathi, Guntur District.

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The Director, A.P. Government Text Book Press, R/o. D.No.4-1-16/1, Lakshmipuram, Guntur, Guntur District-522 007.

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...Respondents

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by the Respondent for the work of printing AND supply of Text books and Work books is onerous, arbitrary and violative of Articles 14, 16, 19 AND 21 of the Constitution of India and consequently direct the ' Respondents not to insist the said eligibility condition to consider the - , " Petitioners tender for the work V **

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= lA NO: 1 OF 2024

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Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents to consider the Petitioners’ tenders in response to the E-Procurement notice bearing No.50/T1/2023, dt:02-02-2024 issued by the 2 ND Respondent for the work of printing & supply of Text books and Work books without insisting the eligibility criteria mentioned under clause 2.2. I.d of the notice

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Counsel for the Petitioners :SRi. SAi GANGADHAR CHAMARTY

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Counsel for the Respondents: GP FOR SCHOOL EDUCATION

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The Court made the following:

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IN THE HIGH COURT OF ANDHRA PRADESH APHCO10062842024 :: AMARAVATI

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(Special Original Jurisdiction) [ 3333 TUESDAY ,THE THIRTEENTH DAY OF ] FEBRUARY TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SMT JUSTICE V.SUJATHA

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WRIT PETITION NO: 3534 OF 2024

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Between:

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SRI LAKSHMI OFFSET PRINTERS AND BINDERS, Rep. by Its Proprietor A.Prathap Chand, S/o. Rama Rao, aged about^56years, R/o. Surampalli, Krishna District.

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EliteFlexo, Rep. by Its Proprietor K.V.Rao, S/o.Jagan^MohanRao, aged about 42 years, R/o. Khamma Seshaiah Ground, Etukuru Road,Ountur, Guntur District.

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...PETITIONER(S)

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AND

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THE STATE OF AP, Through the Principal Secretary,^Departmentof School Education, Secretariat, Velagapudi, Amaravathi,^Guntur

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District.

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The Director, A.P. Government Text Book Press, R/o.^{D.No.4-1-16/1} Lakshmipuram, Guntur, Guntur District-522 007.

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...RESPONDENTS

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Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of MANDAMUS declaring the, eligibility and Qualification Requirements of bidder^{underclause2.2.1.dof} “that the bidder shall have 10 crores annual turnover in any one out of the last 5 financial years, covering 2018-19 to 2022-23 for books manufacturing and supplying” in the E-Procurement notice bearing NO.50/T1/2023, dt 02- 02-2024 issued by the 2"d Respondent^forthework of printing 85 supply of Text books and Work books^{isonerous,arbitrary} and violative of Articles 14, 16, 19 AND 21 of the^{ConstitutionofIndiaand} consequently direct the Respondents not to insist the said eligibility condition to consider the Petitioners tender for the work and to pass...

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lA NO: 1 OF 2024

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Petition under Section 151 CPC praying that in the^{circumstances} stated in the affidavit filed in support of the petition,^{theHighCourtmaybe}

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pleased Pleased to direct the respondents to consider the Petitioners’ tenders in response to the E- . Procurement notice bearing Na50/Tl/£023, dt:02-02-2024 issued by the 2NDRespondent for the work of printing 85 supply of Text books and Work books without insisting the eligibility criteria mentioned under clause 2.2. l.d of the notice, pending disposal of the above writ, petition, and to pass

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Counsel for the Petitioner(s):SRI. SAI GANGADHAR CHAMARTY

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Counsel for the Respondents: GP FOR SCHOOL EDUCATION (AP)

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The Court made the following:

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The present Writ Petition came to be filed under Article 226 of the

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Constitution of India seeking the following relief:-

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“...to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of MANDAMUS declaring the eligibility and Qualification Requirements of bidder^under clause 2.2.l.d of “that the bidder shall have 10 crores annual turnover in any one out of the last 5 financial years, covering 2018-19 to 2022-23 for books manufacturing and supplying”ⁱⁿ the E-Procurement notice bearing No.50/Tl/2023, dt 02022024 issued by the 2’^ Respondent for the work of printing^& supply of Text books and Work books is onerous, arbitrary^and violative of Articles 14, 16, 19 AND 21 of the Constitution of India and consequently direct the Respondents not to insist the said eligibility condition to consider the Petitioners tender for the work and to pass "

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The case of the petitioners is that they are engaged in Printing & Binding Works of Text Books for the last 3 decades by participating in the tenders issued by the respondents from time to time. While so, the 2"^ respondent issued tender Notice No.50/Tl/2023 dated 02.02.2024, inviting tenders for Printing 86 Supply of Text Books 85 Work Books by procuring the paper to the students studying in the State Syllabus in Government Management Schools for the Academic Year 2024-2025 and the said tender notice was published on 02.02.2024. Under the clause No.2.2, a condition is stipulated for the eligibility and qualification required by a bidder “that the bidder shall have 10 crores annual turnover in any

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one out of the last five fmaneial years covering 2018-19 to 2022-23 for books manufacturing and supplying”. 3. The grievance of the petitioners is that the said condition is imposed for the first time and there was no such onerous condition in the earlier tender notifications i issued by the 2»<i respondent. If the said condition ISi continued to be applied, there will not be any opportunity for the bidders like them in participating in the tender process. Aggrieved by the same, the present writ petition is filed.

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Heard the learned counsel for the petitioners and learned Government Pleader for School Education for r -- respondents.

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Learned counsel for the petitioner while reiterating the contentions of the writ petition has fairly submitted that, the issue involved herein pertains to imposing of a condition under Clause 2.2. Id, which mandates that a bidder shall have Rs.lO crores annual turnover in any one out of the last five financial years covering 2018-19 to 2022-2023 for books manufacturing and supplying and the said i- issue was exhaustively considered by this Court i “ in W.P.No.3209 of 2024, dated 13.02.2024, and the issue herein is similar to that of the i issue involved therein. For which, the learned Government Pleader did not refute the same.

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Having regard to the facts and circumstances and considering the submissions of both the learned counsel, since the issue involved in the present writ petition relates to i imposition of a condition for the eligibility criteria in participating in the tender, and for the reasons stated in

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W.P.No.3209 of 2024, the present writ petition is liable^{tobedismissedin} terms of the order passed therein.

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dismissed in terms of the order 7. Accordingly, the Writ Petition is .3209 of 2024 dated 13.02.2024. There shall be no order passed in W.P.No as to costs.

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of the order passed in 8. Registry is directed to annex a copy W.P.No.3209 of 2024 dated 13.02.2024 to this order,

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shall also As a sequel, miscellaneous applications pending, if any, stand closed.

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SD/- B. PRASADA RAO ASSISTANT R^ISTRAR

//TRUE COPY//

SECTION OFFICER

To,

One CC to SRI. SAI GANGADHAR CHAMARTY Advocate [OPUC]

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Two CCS to GP FOR SCHOOL EDUCATION, High Court of^Andhra Pradesh. [OUT]

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Two CD Copies

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(Along with the order passed in W.P.No.3209 of 2024 dated 13.02.2024)

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PSR

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IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI [ 3333 ] (Special Original Jurisdiction)

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TUESDAY .THE THIRTEENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FOUR

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PRESENT

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THE HONOURABLE SMT JUSTICE V.SUJATHA

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WRIT PETITION NO: 3209 OF 2024

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Between:

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THE AP WEB OFFSET PRINTERS ASSOCIATION, (Regd), Rep.by its Secretary, Pentya Basavaiah, S/o Venkaeswarlu, aged 58 years, 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10

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Akshara Printers, , Rep.by Partner, Malllkarjuna Rao, 27-87/2, Payakapuram, Vijayawada-520 015.

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Amaraathi Printers,, Rep.by Proprietor Rami Naidu,^244/B, Etukuru Road, NH-5, Bypass Road, Guntur.

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Avighana Impressions,, Represented by Proprietor Srinivas, D.No.423, Behind Parameswara Kata, Etukuru Road, Guntur- 522003.

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Balaji Web Offset Printers,, Represented by Partner Satyanarayana, R.S,No.96/6A, NH-5, PeddauvatapaMi, Ungutur (M), Vijayawada.

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Bezawada Offset Printers,, Rep.by Proprietor, Ragavendar^{Rao,Dhanekula} Estates, R.S.No.211/3, 2-10/2P, Ganguru (V), Penamaiuru (M), Vijayawada.

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Blooms Multicolour Process,, Rep.by Proprietor P. Basavaiah, Plot NO.B2128, Block No.9, New Autonagar, Kanuru, Vijayawada-520015.

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Bosu Babu Tummala Printers and Binders, Rep. by Proprietor, T. Bosu Babu, Plot No.128, Block No.9, New Autonagar, Kanuru, Vijayawadad-5200^07.

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Sri Kanaka Durga Web Offset Printers, Rep. by its^{Partner,P.Janaki,77-} 51/IA-49, New Ater Tank, Adjacent to Disney Land Road, Payakapuram, Vijayawada-520015.

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10.B.N.B. Publishers,, Rep. by its Proprietor, B. Priskila, 30-18-3A, Seetharampuram, Eluru Raod, Vijayawada-4.

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II.Dharani Printers,, Rep. by its Partner, Nagaraju, Plot No. 117, ALEAP, Industrial Area, Surampalli, Vijayawada-521212.

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Elite Flexo Web Offset,, Rep. by its Proprietor, Gopal, 24-37-59/2A, Behind Ganapathi Bar and Restaurant New Flyover, Etukutu Bypass^Road,Guntur.

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13.GBR Offset Printers and Publishers,, Rep. by Proprietor,^{Madhan,PlotNo.} 107, ALEAP, Industrial Estate, Surampalli, Vijayawada-521212.

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14.Hariu Printers,, Rep. by its Partner, K. Madhusudhana Reddy, 43-106/1-58, YSR Road, Ajit Singh Nagar, Vijayawada.

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Plot No. 117, ALEAP,

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New Raja

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^"N^c^8r:nd«PatVT^ab"afe^n,»

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^®'?rcA5 ^K'*® '’ert"®''’ ?•''• Sridhar, Plot No.50, 51, 65 AND 66, ALEAP, Industrial Estate, Surampalli, Vijayawada.

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^'’pSlfv '^'^■i-“- '^®P- '’y i*® Proprietor, B, Jagan^Mohan

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'ts Proprietor, Ch. Jaya Lakshmi 23-13-62, Plot

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No.517, Phase I and II, Indira Autonagar, Guntur-522001. PlotNo^i®^S‘M"?7'^.''.'^®P' “’y '''® Proprietor, T.^Venkata Krishna Rao, Plot No. 17, Block No.37, Autonagar, Guntur-522001.

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^^'n0 2?'a^p&co?/‘^^'^® Partner, B. Sai Rajeev Reddy,^PlotNo.9-22 Block N0.22A, Phase-IV, Autonagar, Guntur-522001. Proprietor, P. Ravi Kumar, 4-110, Shedoi No.3A,

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NH-5, Atkur Village, Unguturu Mahdal, Vijayawada, Krishna District,

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29.Sphurthy Public^ions Rep. by its Managing Director, P. Ravi Kumar 4-110 Krishna

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DsWct^^’^"^’ Village, Unguturu Mandal, Vijayawada, ’^y Partner, Satyanaryana, 43-106-1/122 ’

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Kanakadurga Nagar, Ajitsingh nagar, Vijayawada-15.

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Binders,, Rep. by its Proprietor, A. Pratap

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Chand, Surampally, Industrial Estate, Jakkampudi Village, Nunna, Vijayawada

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32.Sree Lakshmi Press, Rep. by its Partner, K. Shyam Babu, Plot No.43 APIIC Industrial Area, Navaluru, Yerabalem, Mangalagiri Mandai, Guntur District,

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^y Partner, G. Sangameshwar Rao Piot

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No.1-5, Nidamanuru-521104, Eiuru Road, Vijayawada.

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^^'nio *^y Partner, G. Sangameshwar Rao, Plot No.1-5, Nidamanuru-521104, Eiuru Road, Vijayawada. ^®Pw-^y,'!® Proprietor, B. Srinivasa Rao, 10-196/1,^Indira

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Nagar, Gopalapatnam, Visakhapatnam-530027.

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by its Proprietor, N. Chandra Sekhar Rao 1-

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83, Pathapadu Panchayathi, Vijayawada.

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37.Priya Printers., Rep. by its Proprietor, V. Gayatri, D.No.6-179, Kakakini Sagar Road, Mustabada, Gannavaram Mandai, Krishna District.

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38.Sri Sai Sarvani Printers and Binders,, Rep. by its Proprietor K. Kusuma Kumari, D.No.48-12-1, Beside Purdhvi Apartments, Payakapuram, Vijayawada.

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39.Sri Sainadh Printers,, Rep. by B. Harsha Reddy, 14-318/2, Beside Nunna, Mango Market, Nunna Village, Vijayawada-521212.

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40.Sri Sesha Sai Enterprises', Rep. by its Proprietor, P.V. Suryanarayana, 3-88, Chandra Theatre, Main Road, Gosala, Vijayawada.

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41.Sri Sriven Printers,, Rep. by its Proprietor, Suresh Kumar Reddy, Unit-ll, Kavur Mandai, Nellore.

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42.Sri Subhashini Printers,, Rep. by its Proprietor, J. Nageswara Rao, D.No.2215/1-88, B.R.T.S. Road, Bhanu Nagar, Madhura Nagar, Vijayawada.

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43.Surya Printing Works,, Rep. by its Partner, K. Nag^{MalleswaraRao,77-149-} 17, Kandrika Raod, Payakapuram, Vijayawada.

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44.Unique Graphics,, Rep., by its Partner Anjaneyulu, 54-8-53, Plot No.47, Between 4th and 5th Cross, 2nd Road, Jawahar Autonagar, Viajayawada.

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1. Unique Impressions,, Rep. by its Partner, Anjaneyulu,^54-8-53, Plot No.47, Between 4th and 5 Cross, 2nd Road, Jawahar Autonagar, Viajayawada'.

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46.Ushasri Printers,, Rep. by its Proprietor, P. Srinivasa Rao, 32/5, Lalpuram Road, Guntur.

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47.Ushodaya Cent. Pvt. Ltd.,, Rep. by its Managing Director, T. Ramesh, Sattenapalli Road, Sy.No.327/A/A, Peracharala Village,^{MedikonduruMandai,} Guntur-522005.

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48.Vidya Printers and Publishers Rep. by its Partner, J. Ravi, 2-211 Tadigadapa Penamalur, Vijayawada.

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49.. Vijaya Durga Printers,, Rep, by its Proprietor, N. Nageswararao, D.No.83-2134, Ward No.24, Enukuru Road, Jagadamba Estate, Guntur-522003.

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50.Vijaya Lakshmi Web Offset,, Rep. by its Proprietor, Vijaya Lakshmi, D.No.813-121/3, Nehru Nagar, GuntUr-522001.

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Vijaya Printers Rep. by its Partner, Ch. Bhaskar Rao, 43-106-1/122A, Kanakadurga Nagar, Ajitsingh Nagar, Vijayawada-15.

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52.V.S. Hitech Security Formes Pvt. Ltd.,, Rep. by its Managing Director, R. Phani Krishna, Plot No. 11, ALEAP Industrial Estate, Nunna, Vijayawada521212.

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53.VGS Books Links, Rep. by its Parnter, S. Rama Rao,^{5-6-59/3,SecondFloor,} Tammaina Krishna Street, Behind Sairam Theatre, Vijayawada-52000^1.

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54.VGS Publishers,, 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10.

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55.Vikram Book Links Pvt. Ltd.,, Rep. by its Managing Director, R. Srinivas Vikaram, 30-4-15, Ramaswamy Street, Durga Agraharam, Vijayawada.

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56.Vlkram Publishers,, 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10. 57.S.R. Book Links,, 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10.

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58.S.R. Publications,, Rep. by its Partner Madhan DRR Street, Inner Ring Road, Ambapuram, Vijayawada-520012.

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59.G.N.R. Offset Printers and Publishers,, 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10.

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60.S.R. Towers (India) Pvt. Ltd 40-17-3/9, APSEB Colony, Labbipet, Vijayawada-10

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...PETITIONER(S)

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AND

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Principal Secretary, Education Department,

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A.P. Secretariat, Velagapudi, Guntur District.

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1. The Director, A.P. Government Text Book Press, D.No 4-1-16/1 Lakshmipuram, Guntur-522007. ’

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Andh^rP^radish^®' Government of Andhra Pradesh Guntur,

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The Commissioner, industries, Micro, Smaii and Medium Enterprises, Vijayawada. sS<sh"a"/fdu“Sai7cK,»^^ (Samagra

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...RESPONDENTS

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Petition under Article 226affidavitof thefiledConstitutiontherewith,of theIndiaHighprayingCo^urtthatmayin thebe pleased topleased to issue Writ, Order or direction more particularly one in the T^nripr^M^f'^ Mandamus, declaring the action of the respondents in issuing Tender Notification vide e-procurement Notice No.50/T1/2023, dated 2-2-2024 thrnpnp h E!!" Textbooks and Workbooks by procuring the paper by the bidders to the students studying in the State Syllabus in Government Management schools situated in the State of Andhra Pradesh for 9094 without considering the representation dated 9-12024 as Illegal and arbitrary and voilative of Article 14, 19 (1)(g) and 21 of the Constitution of India consequently (a) to direct the 1st respondent to dispose of thp 9-1-2024 by giving an opportunity of personal hearing^to tender Notification vide e-procurement Notice N0.50/T1/2023, dated 2-2- 2024 Name of the work Printing and supply of Textbooks and workbooks by procuring the paper by the bidders to the students studying in the state Syllabus in Government management schools situated in the state of Andhra Pradesh for the academic year, 2024-25, in the interest of justice, and pass iA NO: 2 OF 2024 tu under Section 151 CPC praying that in the circumstances^stated m the affidavit filed in support of the petition, the High Court may be pleased Pleased to stay all further proceedings pursuant to the Tender Notification vide Notice N0.50/T1/2023, dated 2-2-2024 Name of the Work Printing and supply of Textbooks and Workbooks by procuring the paper by the bidders to the Students studying in the State Syllabus in Government management schools situated in ..u Andhra Pradesh for the academic year 2024-2025 pending disposal of the Writ Petition before this Hon'ble Court, and pass

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IANQi1_oF2024

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Pleased 2024 of thP notv Respondent to consider thP^ron^° ^ u petitioners Associatinn oft ■ ■ representation daterl q 1

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Counsel for the Respondents: •■ GP for school education (AP)

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The Court made the following;

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The Writ Petition came to be filed under Article

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226 of the Constitution of India seeking the following relief:-

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•••■to issue Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Tender Notification vide respondents in issuing 02.02.2024 “Name e-^procurement Notice No.50/Tl/2023 dated Workbooks by■> hejWorfc PrinHng and supply of TeMbocks and procuring the paper by the bidders studying in the State SyUabus i to the students situated in the State of Andhra m Government Management schools Pradesh for the without academic year 2024-25” considering the representation dated 09.01. arbitral and violative '2024 as illegal and of Article 14, 19 (IKg) and 21 of the Constitution of India, consequently (a).to direct the representation dated 1st respondent to dispose of the hearing to the 09.01.2024 by giving an opportunity of personal vide the paper by the bidders workbooks by procuring to the-students Government studying in the state Syllabus in Pradesh for themanagement schools situated in the state of Andhra academic year 2024-25”, pass ” in the interest of justice and

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The tactual matrix in W.P.No.3209 of 2024 is as follows; under the Provisions of the A.P. Petitioner No.l is a Society registered Nos.2 to 59 are its Societies Registration Act, 2001 and the other petitioner ' No.l Association are all Micro, members. The Members of the petitioner Small and Medium Enterprises Certificate Holders issued by the Central Government under the provisions^{ofMicro',SmallandMediumEnterprises} of Web Offset Printing services. Act, 2006 and engaged in the business Tenders for printing Text Books and The Government of A.P. called for . and the required paper for printing the text Work Books (4 colours) etc books and workbooks will be supplied by the^{Government.Theturnoverof} would be around Rs. the Petitioners Association the Members of annum. Up to 2014 the petitioners 50,00,000/- to Rs.1,50,00,000/- per of for the purpose used to operate single colour equipment/machineiy Rs.25,00,000/-. Subsequently, at and the cost of the unit is about printing of the Government of A.P.. the petitioners were directed to the instance further invested about Rs.90,00,000/- per adopt colour upgradation, so they . Subsequently, for awarding of the printing machine for the said purpose work by the Government, the petitioners were directed to adopt technology invested 2021, accordingly. they upgradation in the year machine by borrowing amounts from the Financial Rs.l Crore per Institutions. ngaged by the Government for the previous year The petitioners were e Book and Work Books duly executed the Text 2023-24 and they have bills due and payable by the entrusted by the Government. The printing as of Text Books is around with respect to printing Government

¶151

¶152

Rs.37,11,59,163/and the bills payable for work books printing is Rs.9,99,95,380/-. Thus, a total amount of Rs.44,11,54.543/- is payable to the Members of the petitioner No.l Association. Respondent No.2 - The Director, A.P.Government Text- Book Press, issued a notification dated 19.01.2024 in the daily news paper notifying the draft conditions of Notice inviting Tender through National Competitive Bidding" vide e- procurement notice No.SO/Tl/ 2023 dated .01.2024 and directed to submit the objections by the General Public/Entrep reneurs, to the Judge, Institution of Judicial Preview regarding the conditions of the Tender pertaining to work 'Printing and supply of Textbooks and Workbooks to the students studying in the State Syllabus in Government management schools situated in the State of Andhra Pradesh for the academic year 2024- 25". As per .the draft Tender Conditions, to participate in the tender process, one of the eligibility conditions is that the Tenderer should have annual turnover of Rs.lO Crores for the preceding three years. The said tender ISi called for by including procurement of paper by the Tenderer himself. Petitioner No. 1 submitted the objections dated 29.01.2024 before the Institution of Judicial Preview. Petitioner No.l also submitted the representation dated 09.01.2024 to respondent No.l. A.P. Government Text Book Press for deviating the tender policy existing for the last 41 1 years and proposing to call for Tenders with paper and printing from the Tenderers across India, which is beneficial to big corporate printing companies across India, by eliminating Micro, Small and Medium Enterprises.

¶153

Majority of state governments in the India are being called Tenders without paper tender and encouraging and protecting their respective local

¶154

¶155

MSMEs, so as to provide employment td the unemployed^youth. It is mentioned in the draft copy that the estimated cost^per page^{is34.2paisa.It} has been calculated on the paper price of previous^{AcademicYear.Further,} now paper prices has come down by 20 to 30% when compared^toprevious Academic Year. So, in the event of calling tenders^{withoutpaper,thetender} cost per page will come down to 26 paisa. It is further stated that GST Rate is .5% in case of without paper tender. Whereas GST Rate is 18% in case of with paper^{tender.Henceitwill} be additional burden of 13% to the Government Exchequer. If tender goes to outside State printer, the entire GST amount will go^{torespectiveother} States. In such a case, A.P Government has to lose huge GST amountⁱⁿ crores.

¶156

The proposed Tender / Bid Document- vide e-procurement notice NO.50/T1/2023, dated 01.2024 eliminating-Micro, Small and Medium Enterprises in the State who are more than 52 in number^engagedinthe business of Web Offset Printing is arbitrary and violative^{ofArticle14,21of} the Constitution of India. Further, imposing a condition that the turn over of^{thebidderabove} Rs.lO Crores is also a tailor made condition so as^{toavoidtheMicro,Small} and Medium Entrepreneurs in the State totally. Objections^{submittedbythe} petitioners dated 29.01.2024 were considered as an eyewash and recommended to allocate 25% out of the total quantum^{ofworksoughttobe} called tenders to the MSME entrepreneurs. Respondent^No.l so far not considered representation of the petitioners dated^{09.01.2024bygivingan} opportunity of personal hearing to them. Respondent^{No.2publisheda}

¶157

¶158

tender notification vide e-ni - procurement Notice NO.50/T1/2023, dated 02.02.2024 calling tenders under National Competitive Bidding for the work as under,

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Name of the Work; Printing and supply of Textbooks by procuring the and Workbooks paper by the; bidders to the Students studying in the State Syllabus in Government - management schools situated mi the State of Andhra Pradesh for the academic year ,2024-25. The conditions of the tender virtually eliminatin g Micro, Small and Medium Enterprises totally elmjinating the tender process is arbitrary and against the public i interest. Petitioners submitted representation to the Government/respondent No.l for „ consideration of their grievances vide representation dated 09.01..024 and the Oovernnrent has to take a decision on the overall i issue of calling tenders for Pnnting and supply of Text Books and Workbooks. Non consideration of their representation dated 09.01.2024 by the respondent No. 1 is arbitrary and illegal and violativevi of Article 14, 19(1) (g) and 21 of the Constitution of India. Without disposing of their representation dated 09.01.2,024 issuing a tender notification dated 02.02.2024 vide e- procurement Notice No.50/Tl/2023, dated 02.02.2024 calling tenders for the work "ffame of the Work: Printing and supply of Textbooks and Workbooks by procuring the paper by the bidders to the Students studying in the State Syllabus in Government management schools situated ini the State of Andhra Pradesh for the academic year 202425. is illegal and arbitrary and against the principle of legitimate expectation apart from violation of Article 14, 19(l)(g) and 21 of the Constitution of India. Hence, the writ petition.

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of admission, learned Government Pleader for School At the stage Education produced copy of Lr.Rc.No.50/Tl/2023 dated 07.02.2023 Text Book Press, Guntur, wherein received from Director, A.P. Government G.O:Ms.No.2, School Education Dept, it is stated Government has issued if of A.P. Government Textbooks dated 10.01.2024 and permitted the Director with the conditions specified in the the tender document Press to prepare of the instructions G.O. and forward it for Judicial Preview. In pursuance issued in GO.Ms.No.2, respondent No.2 has prepared a tender document 18.01.204. In order to invite and submitted for Judicial Preview on the public, the said document was and objections from suggestions Judicial Preview website and same was available from uploaded on the notification was also 29.01.2024. In this regard,- a press 18.01.2024 to received by the Judicial to the same, 48 objections were issued. In response ■s Association / petitioners also Preview. Wherein, The A.P. Web offset Printers submitted representations on 24.01 .2024 and 29.01.2024. The Chairman, to respondent No.2 has forwarded the representations Judicial Preview . Immediately, provide response to each objection along with instructions to to the Judicial Preview on respondent No.2 has submitted detailed response the Honorable Upon reviewing all objections each and eveiy objection. textbooks printing tender with Chairman, Judicial Preview approved the for modification of the J^{tenderdocument.Asperthe} certain directions modifications were euggestions made by the Judicial purview all necessary made and the tender document was^{floatedinA.P.e-procurementportalon} 16.02.2024 for enabling shall be available up to 03.02.2024 and the same in the textbooks printing work. bidders to participate

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It is further stated that when one method is convenient,^viableand economical to the Govt., no vested right accrue to the printers to make a claim or insisting the State, to go for separate tenders i.e. one for procurement of paper and other for printing of text^{books85workbooksand} dictionaries on such paper being supplied to them.^{Asthetenderisfloated} at national level, it is open for the printing firms^{locatedinstateofAPalso} to participate in tender. Further, single tender approach for both printing and paper procurement is cost-effective and save the time to procure the paper and supply the books to mandal destinations. Further, there is reverse tender process whereunder lowest quoted bid price to be further quoted by reduced if any to arrive the LI price of^{reverseauctionandthose} who match can become part of procurement requirement for the supply contract involving paper, printing and transport with insurance if any etc.. there is no tenable objection to consider further from this query also. The provision of Rs.lO crore annual turnover is prescribed for specific purpose in this tender. Bidders participating in this process are expected to independently procure paper, execute printing processes and manage the supply chain up to mandal points. This level of operational independence requires significant capital and infrastructural facilities, thus necessitating the financial threshold of Rs.lO crore turnover. As per G.O.Ms.No.94, I86CAD (PW-COD), dated 01.07.2003, one out of the five years annual turnover is the criteria. Hence, the clause imposed^{inthetenderdocument} by fixing Rs.lO Crores annual turnover in any one out of the last five financial years covering 2018-19 to 2022-23.

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In compliance with the directions of the Judicial Preview, the tender document has been prepared and floated in the APe-procurement portal on 02.02.2024. Bidders are now able to view and participate in the tender from 03.02.2024 at 10:00 am to 16.02.2024 at 2:30 p.m. and requested to dismiss the writ petition.

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Heard learned counsel for the petitioners and learned Government Pleader for School Education Department

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Facts are not in dispute. The main grievance of the petitioners is that State issued tender Notification vide e-procurement Notice No.50/Tl/2023 dated 02.02.2024 inviting tenders for printing and supply of Textbooks and Workbooks by procuring the paper by the bidders to the Students studying in the State Syllabus in Government management schools situated in the State of Andhra Pradesh for the academic year 2024-25, without considering their representation dated 09.01.2024.

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The relevant portion of the representation dated 09.01.2024 is as follows:

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"We have come to know frnm reliahip sources that for the ensuinpr academic year 2024-25. n^tipn-wide .are being called for and a condition is also being imposed wherein the printer/printing contractor themselves have to procure paper and supply books and the Government would not supply paper, as was being done earlier.

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We take the liberty in submitting that more than 75 printing industries are involved in the work of printing government text books and providing direct employment in thousands and indirect employment in lakhs of people. Keeping in view all the above factors .into account, we beseech you, Sir, to forthwith direct the concerned not to go for nation-wide tendpr.g for which act kindness we shall ever be grateful to you.”

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In pursuance of the instructionsi i No.2 submitted ^ >--c. in G.O.Ms.No.2, respondent the tender document tor judicial order to invite preview on 18.01.2024. In suggestions and objections from the document public, the said was uploaded on the Judicial Preview website and same was available from 18.01. 2024 to 29.01.2024. In this regard, a press notification was also issued.i In response to the same, 48 objections Judicial. Preview. were received by the Wherein, the A.P. Web offset petitioners also Printers Association/ submitted representations on 24.01.2024 Apart from other and 29.01.2024. submissions, the main prayer made in the dated 29.01.2024 representation submitted by the petitioner No.l ISi as follows: -->eir:r:“r IS against to local MSMEs Keeping in andvieweconomicalall the abovesituation ISi not permitting them.

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callt’lr, newto forthwithWithout directpaper thetenderconcerned factorsnot to K9jornation-w^into' account, we beseechlendm you,and as per old practice followed vear 2023-24. for which upto Academic act of kindness we shall ever be In addition to grateful to you our detailed . submissions above kindly be permitted/allowed to submit bid we request that we may behalf of our AP EB OFFSET PRINTERS collectively and combinedly on Association to become tender, bidding process as eligible in the eligibility of we all the members.stipulated by the Govt by taking combined It i IS. evident from the representations 29.01.2024, the dated 09.01.2024 and main request of the petitioners ISi to direct the OSltogoJbrnation concerned by deviatin g the practice. The said prayer was considered by the Judge, Judicial Andhra Pradesh. Preview, The relevant Preview i portion of the findings of Judge. Judicial IS as follows;

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So far as the deviation of practice convenient, viable concerned, when same is for no vested right andaccrueeconomical to the Govt., there ISi nothing to find fault to the printers to make a claim for State has to go

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and other for printing of for procurement of paper for separate tenders one text books & work books and dictionariesies onAssociationsuch papertobeingbe permittedsupplied toto the AP Web offset printers them. So far as behalf of the members of it by taking combined submit the bid collectively on that the Association eligibility tbi .ne^bets concerned, it is work by submission of bids ana g in its name did any reijected for not even a joint eligibility therefrom. Hence said request is members and it is not venture or consortium permitted with two or three n,e association with , several members of it by takmg possible to permit the e technieal eligibility without the association individual members eligibility as the technical eligibility, having on its own dated

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having on its own dated 29.01.2024 made in the representation Therefore, the prayer be said that the prayer was considered by the Judge, Judicial Preview. It can considered as the dated 09.01.2024 was also made in the representation dated 09.01.2014 and objections dated made in the representation prayer and the submitted before the Judge. Judicial Preview is one 29.01.2024

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same.

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09.01.2024. Petitioner No.l issued by tender was Further, no the tender to be issued on coming to know about submitted representation in the representation itself. was specified from reliable sources and the same the same is reproduced hereunder, for better At the cost of repetition appreciation: for the ensuing Vnnw from reiiable.sgurces come to palled for and a widetenders_are_beiiig ono4.-9.S, nation:: f,pgHemic year the printer/printing contractor being imposed wherein condition is also and the Government and supply books themselves have to procure paper being done earlier. would not supply paper, as was

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which date 09.01.2024, on of action as on Hence, there is no cause cannot seek . Therefore, petitioners petitioner No .1 submitted representation ocurement Notice No.50/Tl/2023 to quash the^{tendernotificationvidee-pr}

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dated 02.02.2024 on the ground that the representation dated 09.01.2024 submitted by petitioner No. 1 is pending before respondent No.l. Learned Government Pleader for School Education relied on the judgment of the Honhle Apex Court in ■M/s.N.O.ProJects Limited Vs. M/s. Vinod Kumar Jain and others^”, Wherein it is held that the construction of road is an infrastructure project and keeping in view the intent of the legislature that infrastructure nroi projects should not be stayed, the High Court would have been well advised to hold its hand to stay the construction of the infrastructure project. Such provision should be kept in view even by the Writ Court while exercising its jurisdiction Under Article 226 of the Constitution of India.

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In “Jagdish Mandal Vs. State of Orissa?”, the HonTble Apex Court held that judicial review of administrative action is intended to prevent arbitrariness, irrationality, unreasonableness, bias and mala fides. Its purpose is to check whether choice or decision is made "lawfully' and not to check whether choice or decision is "sound". When the power of judicial review is invoked mi matters relating to tenders or award of contracts, certain special features should be borne i in mind. A contract is a commercial transaction. Evaluating tenders and awarding contracts are essentially commercial funcHons. Principles of equity and natural justicei stay at a distance. If the decision relating to award of contract is bona fide and is in public interest, courts will not, ini exercise of power of judicial review, interfere even if a procedural aberration or error in assessment or prejudice I AIR 2022 SC 1531 "(2007) 14 see 517

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will not be permitted to a tenderer, is made out. The power of judicial review interest at the cost of public interest, or to to be invoked to protect private decide contractual disputes. The tenderer or contractor^{withagrievancecan} civil court. Attempts by unsuccessful tenderers always seek damages in a with imaginary grievances, wounded pride and business^{rivalry,tomake} mountains out of molehills of some technioal/procedural violation^orsome interfere by exercising power of prejudice to self, and persuade courts to either interim or judicial review, should be resisted. Such interferences, final, may hold up public works for years, or delay relief and succour to thousands and millions and may increase the project cost manifold. contractual matters in before interfering in tender or Therefore, a court to itself the following exercise of power of judicial review, should pose questions:

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•decision made by the authority is (i) Whether the process adopted or mala fide or intended to favour someone; ■; or

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Whether the process adopted or decision made is so^arbitraryand the decision is such that no responsible irrational that the court can say; accordance with relevant law could have authority acting reasonably and in reached"; (ii) Whether public interest is affected, If the answers are in the negative, there should be no interference Under Article 226 of the Constitution of India.

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In the present case also, the process adopted by the^{authoritiesisnot} intended to favour someone and there is no mala fide and no public interest is affected. Therefore, the impugned tender cannot be quashed.

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In Uflex Ltd. V. Government of T.N.^”, the HonTDle Apex^Court stated that the enlarged role of the Government in economic activity and^its corresponding ability to give economic "largesse" was^{thebedrockofcreating} what is commonly called the "tender jurisdiction". The objective was to have greater transparency and the consequent right of an^{aggrievedpartyto} invoke the jurisdiction of the High Court Under Article 226 of the Constitution of India beyond the issue of strict enforcement^{ofcontractual} rights under the civil jurisdiction. However, the ground^{realitytodayisthat} almost no tender remains unchallenged. Unsuccessful parties or parties not even participating in the tender seek to invoke the jurisdiction^oftheHigh Court Under Article 226 of the Constitution.

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Having regard to the law laid down by the Hon^ble Apex^Courtinthe judgments (referred supra) and since the representation^{dated09.02.2024is} not connected to the present impugned tender notification^asthesamewas submitted much before issuance of the impugned tender,^{andontheother} hand, the subsequent objections submitted by petitioner No.l dated 29.01.2024 were already considered by the Judge, Judicial^{Preview,thewrit} petition is liable to be dismissed,

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Accordingly, the writ petition is dismissed. No costs. However, the petitioners are at liberty to participate in the tender process, if they are otherwise eligible.

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^ (2022) 1 see 165

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Miscellaneous petitions pending, if any, in the Writ Petitions, shall

stand closed.

JUSTICE V.SUJATHA

13.02.2024 Ksp