Dismissed

M/S the Brains Traders and Consultants v. Chairman, the Jammu and Kashmir Bank Limited

J&K HC13 Sept 2021LPA/109/2021

Case brief

AI extract

What is this about?

The High Court dismissed an appeal challenging the validity of a tender condition requiring minimum 5 years of experience for security services by March 31, 2020. The bench held the condition was neither arbitrary nor irrational, upholding the learned Single Judge's decision.

What did the court decide?

The appeal was dismissed with no meritorious ground found.

M/S the Brains Traders and Consultants Vs Chairman, the… — Company and Corporate | J&K HC (2021)

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Sr. No. 45

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IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR

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CJ Court

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LPA No. 109/2021 CM No. 5552/2021c/w Caveat No. 1253/2021.

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M/S The Brains Traders & Consultants. …Petitioner(s)/Appellants.

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Through: Mr. M. Ashraf Wani, Advocate.

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Vs.

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Chairman the J&K Bank Ltd. ….Respondent(s)

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Through: Mr. Z. A. Shah, Sr. Advocate with Mr. A. Hanan, Advocate.

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CORAM: HON’BLE THE CHIEF JUSTICE HON’BLE MR. JUSTICE VINOD CHATTERJI KOUL, JUDGE

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O R D E R 13.09.2021

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Mr. Shah, Sr. Advocate, who is on caveat enters appearance and waives notice on behalf of the caveators. Caveat discharged.

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Heard Shri M. Ashraf Wani for the petitioner/appellant and Mr. Shah, assisted by Mr. A. Hanan, Advocate, learned counsel appearing for the respondent-bank.

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The appellant has preferred this appeal against the judgment and order dated 20.08.2021, passed by the learned Single Judge, dismissing the writ petition WP (C) No. 1640/2021, titled M/S The Brains Traders & Consultants v. Chairman, the Jammu and Kashmir Bank Limited.

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The petitioner/appellant by means of the above writ petition challenged the e-tendering dated 29^th May, 2021, by which the respondent-bank invited tenders for grant of contract for security services. One of the

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ABDUL RASHID GANAI 2021.09.14 03:41 I attest to the accuracy and integrity of this document

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conditions of the aforesaid tender advertised provided that the bidders should have experience of minimum 5 years as on 31^st March, 2020.

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The petitioner/appellant contended in the writ petition as also in the appeal that the condition of 5 years of experience on the cut off date of 31^st March, 2020, on which date the firms should have 5 years’ experience, is totally arbitrary, irrational and illogical. The learned Writ Court, after discussing the entire case law on the subject, relying on various judgments including “Tata Cellular v. Union of India (1996) 6 SCC 651 and Sterling Computers Limited v. M&N Publications Ltd. (1993) 1SCC 445”, as well as some other decisions came to the conclusion that there is hardly any scope for judicial intervention as the terms and conditions of the e-tender and the condition fixing the cut off date as 31^st March, 2020, are neither arbitrary nor irrational and as such deserve no interference.

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It is well settled that the terms and conditions inviting the tender are not open for the judicial scrutiny as it pertains to the grant of contract. The Government is free in laying the terms and conditions provided they are reasonable and are not irrational and arbitrary. It is also well settled that the Court cannot strike down the conditions prescribed by the Government if it feels that some other terms in the contract are not fair, wise or logical. In this regard a reference may be had to the in the case of “ Directorate of Education and others vs. Educomp Datamatics Ltd. and others (2004) 4 SCC 19.

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In the case on hand the contractors, providing security, were required to be registered under Private Security Agency (Regulation) Act, 2005,

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ABDUL RASHID GANAI 2021.09.14 03:41 I attest to the accuracy and integrity of this document

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which was a Central Act and not applicable to the then State of J&K. However, for the State of J&K there had been a separate Act, viz. J&K Private Security Agencies (Regulation) Act, 2015, which was repealed with the abrogation of Article 370 of the Constitution. In view of the above as well as the Central Act, which becomes applicable after the abrogation of Article 370 of the Constitution, the bank provided for a minimum of 5 years of experience for the security agencies as on 31^st March, 2020, taking it from the applicability of the State Act so that no distinction can be meted out to the agencies registered under the Central Act as well as State Act.

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In view of the above circumstances, we are in agreement with the finding of the learned writ Court that there is no irrationality or arbitrariness in fixing the 31^st March, 2020, as cut off date.

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