Polasi Vasudeva Rao Vs the Union of India

POLASI VASUDEVA RAO, A SOLE PROPRIETORSHIP CONCERN HAVING ITS OFFICE AT H.NO.20/228, BETHAVOLU, GUDIVADA-521301 REPRESENTED BY ITS SOLE PROPRIETOR, POLASI VASUDEVA RAO, S/O PSEETHARAMA SWAMY, AGED ABOUT 52 YEARS, OCC BUSINESS, R/O 20/228, BETHAVOLU, GUDIVADA

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...PETITIONER

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AND

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THE UNION OF INDIA, REPRESENTED BY ITS SECRETARY, NEW DELHI CENTRAL COUNCIL FOR RESEARCH IN HOMEOPATHY, MINISTRY OF AYUSH.

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CENTRAL COUNCIL FOR RESEARCH IN HOMEOPATHY, MINISTRY OF AYUSH DEPARTMENT, JNBCAHA BHAWAN 6165, INSTITUTIONAL AREA, OPP D-BLOCK, JANAKPURI, NEW DELHI-58, REPRESENTED BY ITS ASSISTANT DIRECTOR-ADMINISTRATION, NEW DELHI.

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THE DIRECTOR GENERAL, CENTRAL COUNCIL FOR RESEARCH IN HOMEOPATHY, MINISTRY OF AYUSH DEPARTMENT, JNBCAHA BHAWAN 6165 INSTITUTIONAL AREA, OPP D-BLOCK, JANAKPURI, NEW DELHI-58

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REGIONAL RESEARCH INSTITUTE, H-HOMEOPATHY AT DR.GGH MEDICAL COLLEGE CAMPUS, ELURU ROAD, GUDIVADA, KRISHNA DISTRICT, REPRESENTED BY ASSISTANT DIRECTOR/OFFICER IN-CHARGE, GUDIVADA.

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THE ASSISTANT DIRECTOR, REGIONAL RESEARCH

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INSTITUTE, H-HOMEOPATHY AT DR.GGH MEDICAL COLLEGE CAMPUS, ELURU ROAD, GUDIVADA, KRISHNA DISTRICT.

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M/S SRI RAGHADHATRI INDUSTRIES PRIVATE LIMITED, A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 2013, HAVING ITS REGISTERED OFFICE AT 13136/A/1, KASINDHAPURAM STREET, SITHANAGARAM, TADEPALLI, GUNTUR, ANDHRA PRADESH, REPRESENTED BY ITS MANAGING DIRECTOR, CHENNURI DHANALAKSHMIRAO D/O NUTHAKKI VENKATA SUBBA RAO, AGED 43 YEARS, R/O DOOR NO.13-136, KASINADHAPURAM STREET, SITHANAGARAM, TADEPALLI, GUNTUR, ANDHRA PRADESH. R6 IS IMPLEADED AS PER THE COURT'S ORDER DT.02.12.2025 IN I.A.NO.05 OF 2025.

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...RESPONDENT(S):

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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 a writ order or direction more particularly, one in the nature of Writ of Mandamus, declaring the Tender Notice (Bid Number GEM/2025/B/6358069 dated 04.07. 2025) advertised by the Respondent Regional Research Institute (for short RRI) without extending the Petitioners Contract Period till 31.03.2026 as approved by the Central Council vide F.No.AD24/35/2025-ADMIN/5563 dated 26.03.2025 and in mischievously extending the same from 01.07.2025 to 31.07.2025 vide F.No.214/2025-26/RRI/GDV Estt.Outsourcing/838 dated 04. 07.2025 and in fixing the Tender Conditions in the Bid Document in violation of the Public Policy as being illegal, arbitrary, biased, wholly without jurisdiction and violative of Articles 14, 19, 21 and 300A of the Constitution of India and consequently quash the Tender Notice dated 24/06/2025 and also direct the Respondents to extend the Petitioners contract period for another two (02) years from August, 2025 and pass s

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IA NO: 1 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay of all further

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proceedings pursuant to the Tender Notice (Bid Number GEM/2025/B/ 6358069 dated 04.07.2025) and pass

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IA NO: 2 OF 2025

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Petition under Section 151 CPC 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 extend the Petitioner’s contract period for another term of two (02) years from August, 2025

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IA NO: 3 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to permit the Petitioner to amend the Affidavit filed in support of the above Writ Petition by inserting the following Paragraphs after Paragraph No.7; 7A. It is submitted that the Proceedings vide .FNo.AD- 24/35/2025-ADMIN/ 5563 dated 26.03.2025 were issued by the Central Council on the Petitioner’s Representation. The Additional Director for the reasons best known suppressed the same from the Petitioner. It is only at the time of .FNo.214/2025- 26/RRI/GDV/Estt./Outsourcing/838 dated 04.07.2025, the Petitioner came to know about the same. Till such time, the Petitioner bonafidely believe that the Representation referred to in .F No.AD-24/35/ 2025-ADMIN/5563 dated 26.03.2025 is pending before the CCI. It is only at the instance of the Additional Director it appears that subsequent extensions without referring to the .FNO.AD-24/35/2025-ADMIN/ 5563 dated 26.03.2025 were given. In the event of any alterations made to the aforesaid approval given by the CCI, the Petitioner must be put on notice and heard. No reasons were assigned by the Respondents including the CCI for altering the approval as being alleged. The Petitioner was not heard and the extensions given in March 2025 & July 2025 are evidently at the instance of Additional Director. As done previously and approved by the CCI, the Respondents ought to have extended the contract period for the Petitioner. Even in cases where the extension assuming without admitting that is at the pleasure of the Respondents, the same shall not absolve the Respondents from putting the Petitioner on notice, affording a hearing and taking a final decision. Believing that the

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Respondents will extend the contract as done previously, the Petitioner continued the services of the man-power services and invested substantial amounts towards the same. It is submitted that the principles of natural justice cannot be violated and even to rescind the existing contract, which was extended from time to time, the Petitioner must be heard on notice. The Tender floated by the Respondent Authorities is contrary to the public interest and as evident from the record, the Respondents are contemplating to avail man-power services at much higher rates than the rates at which the Petitioner is providing such services. Respondents should give priority to the financial wellbeing of the Respondent Councils and not at their cost. The public funds cannot be used contrary to the public interest. The Respondents are acting arbitrarily and with a malafide intention to oust the Petitioner from providing man power services. The Respondents are acting with bias and excess of their powers. As requested by the local Member of Parliament, the Respondents have advertised the impugned Tender and are contemplating to award the same to the people of their choice in a biased manner. and pass

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IA NO: 4 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to extend the interim order granted on 18.07.2025 in the above W.P.NO.17983.2025 Until further orders and pass

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IA NO: 5 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to permit the petitioner herein to implead the proposed respondent No. 6 as party respondent No. 6 in WP No. 17983 of 2025 and lAs and pass

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IA NO: 6 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the

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petition, the High Court may be pleased to condone the delay of 135 days in Representing the IA (SR) No.58344 of 2025 in WP.No.17983 of 2025 and pass

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IA NO: 7 OF 2025

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Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate the interim order dated 18.07.2025 passed in WP.No. 17983 of 22025 and dismiss the present writ petition and pass

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Counsel for the Petitioner:

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1.M R K CHAKRAVARTHY

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Counsel for the Respondent(S):

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1.G.ARUN SHOWRI(CENTRAL GOVT. COUNSEL)

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2.V SAI KUMAR

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The Court made the following ORDER:

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The present Writ Petition has been filed, under Article 226 of the 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 Tender Notice (Bid Number: GEM/2025/B/6358069 dated 04.07.2025) advertised by the Respondent Regional Research Institute (for short “RRI”) without extending the Petitioner’s contract Period till 31.03.2026 as approved by the Central Council vide F.No.AD-24/35/2025-ADMIN/5563 dated 26.03.2025 and in mischievously extending the same from 01.07.2025 to 31.07.2025 vide F.No.2-14/202526/RRI/GDV /Estt./Outsourcing/838 dated 04.07.2025

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and in fixing the Tender conditions in the Bid Document in violation of the Public Policy as being illegal, arbitrary, biased, wholly without jurisdiction and violative of Articles 14, 19, 21 and 300A of the Constitution of India and consequently quash the Tender Notice dated 24/06/2025 and also direct the Respondents to extend the Petitioner’s contract period for another two (02) years from August, 2025 in the interest of justice…”

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Case of the petitioner is that Petitioner-Proprietorship concern is carrying on its business in providing manpower Outsourcing Services to various institutions including the RRI. The Respondents advertised E-Tender dated 05.02.2020 vide F.No.01/201920/RR/GDV/Manpower/773 to provide Manpower to the RRI and the Petitioner stood as the higher bidder in the said process. The Petitioner was issued Work Order vide F.No.01/201920/RRI/GDV/Manpower/508 to 510, dated 22.09.2020. The existing Contractor viz. M/s.Hema Sri Securities, during the relevant point in time filed W.P.No.6350 of 2020 questioning the e-tender. It also filed W.P.No.17926 of 2020 (filed on 01.10.2020) questioning the Work Order issued to the Petitioner and W.P.No.1329 of 2021 questioning the nonconsideration of its Bid. The W.P.Nos.6350 and 17926 of 2020 were dismissed by this Court by Order dated 27.01.2021 and W.P.No.1329 of 2021 was dismissed by Order dated 15.07.2021. The First Interim Order was granted on 05.10.2020 in W.P.No.17926 of 2020 by virtue of which the previous agency

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continued its services. It is also pertinent to state that the said Agency continued its services for over thirteen (13) years.

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It is further stated that pending the said Writ Petitions, by virtue of the interim orders granted by this Court, the previous Agency continued its services in providing Manpower to RRI, whereas the Petitioner, having succeeded in the tender process, became a mute spectator. The Petitioner started providing the services from March 2021. The said Writ Petitions were not diligently pursued by the RRI. RRI vide Proceedings F.No.214/2021-22/RRI/GDV/Outsourcing /731 dated 14.09.2021 requested the Petitioner to provide two Office Assistants, one Pharmacy Assistant and one Security Guard. Admittedly, the Work Order was issued on 22.09.2020 and agreement was entered on 16.03.2021. As per the agreement dated 16.03.2021, Manpower services were provided to the RRI subject to payment of Rs.30,000/- remuneration to Staff Nurse, Rs.24,000/- to Lab technicians, Rs.17,000/- to Office Assistants and Rs.14,000/- to Cook, Security Guard, Plumber, Electrician, Multi-tasking staff, Peon and Safaiwala. However, the Petitioner is paying the basic wages to the employees who were engaged to provide Manpower Services.

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It is further stated that the Petitioner has been providing Manpower services to the respondent RRI. As per practice, CCI and RRI continued the Manpower services provided by the previous agencies for about thirteen (13) years. The Petitioner’s contract was extended from time to time and presently from

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01.07.2025 to 31.07.2025. The last extension is vide Proceedings f.No.2-14/2025-26/RRI/GDV/Estt./Outsourcing/838 dated 04.07.2025. The extension has reference to the approval given by CCI vide Lr.No.AD-24/35/2025-ADMIN/1544 dated 04.07.2025. However, at the time of issuing the proceedings dated 04.07.2025, the RRI annexed Proceedings vide F.No.AD24/35/2025-ADMIN/5563 dated 26.03.2025 by virtue of which passed a resolution to extend the contract period for one (01) year from 31.03.2025 to 31.03.2026. However, the CCI or RRI suppressed the same from the Petitioner. The Petitioner learnt that at the instance of local Member of Parliament, the RRI including the regional Director played role in altering the proceedings. The extension was granted at the instance of the Petitioner as done previously. As stated, the previous agency continued its services for about thirteen (13) years. The Petitioner is similarly situated and should be treated equally and cannot be discriminated. Having approved the extension of time for a period of one (01) year, the Regional Director acted at the instances of political pressure, and restricted the extension till 31.07.2025 which is illegal, arbitrary, biased, irrational and violative of principles of natural justice.

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It is further stated that since the date of agreement the Petitioner has been providing Manpower Services to the utmost satisfaction of the RRI including compliance with the minimum wages. Notwithstanding the fact that the petitioner has been paying remuneration to the staff as stated above, the RRI issued the impugned Tender Notice calling for bids fixing the basic

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monthly pay for staff Nurse as Rs.30,000/-, Lab Technician as Rs.24,000/-, Laboratory Assistant as Rs.20,000/-, Office assistant Rs.20,000/-, Multi-tasking Staff as Rs.16,000/-, Safaiwala as Rs.16,000/-, Cook as Rs.16,000/-, Helper Kitchen as Rs.16,000/-, Ward Boy as Rs.16,000/-, Ward Aaya as Rs.16,000/-, Peon as Rs.16,000/-, Dhobi as Rs.16,000/- as against lesser amounts being admittedly paid for the Manpower Services provided by the Petitioner. The Petitioner is entitled to extension, and it is also resolved by the CCI to extend the same till March, 2026 and the same cannot be altered without cogent reasons.

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It is further stated that the Petitioner was not put on notice about the vide F.No.AD-24/35/2025-ADMIN/5563 dated 26.03.2025 by virtue of which CCI extended the period till March 2026 by way of a Resolution. In the event of there being any change in the same, the Petitioner must be put on notice and afforded an opportunity of hearing. As the Respondents are extending the contract from time to time, the Petitioner expected that it would be extended for a further period like that done for the previous Agency. However, the Respondents are acting arbitrarily and irrationally at the instance of the Political Bosses. Ignoring the fact that the services are being provided at much lesser price, the Tender was advertised calling for applications to provide Manpower Services for the RRI. The Petitioner has prima facie case and balance of convenience in its favour.

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Respondents 1 to 5 filed counter affidavit denying the material averments in the writ affidavit and praying to dismiss the Writ Petition.

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Heard learned counsel for petitioner and learned counsel for respondents.

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A perusal of the material on record goes to show that vide letter dated 26.03.2025 addressed to the Officer In-charge, RRI (H), Gudivada, 2^nd respondent conveyed approval for extension of contractual employees mentioned therein, hired from approved outsourcing agency(petitioner) at RRI (H), Gudivada for a period of one year with effect from 01.04.2025 to 31.03.2026. The extended period of term would come to an end by 31.03.2026. 20 days are left in order to get the extended period completed. It is stated that once the extended period is completed, the respondent-authorities are at liberty to follow the tender process in accordance with law.

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