JUDGMENT Anoop Chitkara, J. - The petitioner and private respondents No.2 to 5 are in the business of ferrying fuel from the depot of respondent No. 1, Hindustan Petroleum Corporation Limited (hereinafter referred to as "HPCL") to its retail outlets. HPCL invited digital e-tenders to transport bulk white petroleum products through road, with effect from 01.10.2018 till 30.09.2023 vide DNIT, Annexure P-1. As per the bid inviting tenders, the successful tenderer, within fifteen days of the issuance of the LOA/work order, had to produce the tank trucks for physical inspection of HPCL. The petitioner as well as the private respondents participated in the said bid. HPCL awarded the tender and issued LOA to the private respondents. Challenging the award of the tender, the petitioner came up before this Court seeking to set aside the LOA and subsequent actions, on the grounds that the calibration certificates of tank trucks were procured in connivance of the sixth respondent, the Inspector, Legal Metrology Department, without any physical calibration actually taking place. 2. The petitioner's grievance was that HPCL did not stick to the eligibility criteria prescribed in the tender notice, Annexure P-1. The petitioner sought strict enforcement of the requirements of calibration certificate on the ground that calibration certificates issued to private respondents were procured without following procedural requirements and, in fact, were managed. The essential condition of the tender was the submission of attested copies of valid calibration certificates apart from other documents. In brief, the material allegation was that the tank trucks of private respondents were never physically examined. In contrast, the calibration certificates had been generated in connivance with the sixth respondent, without any physical verification. Consequently, the petitioner sought cancellation of the bid documents submitted by private respondents. The petitioner also insisted upon an inquiry to ascertain truthfulness of the calibration certificate as mentioned in Annexure P-9. 3. The petitioner's additional prayer was that after prohibiting the private respondents' tank trucks, HPCL was under a contractual obligation to replace the similar trucks available with the petitioner. 4. The Respondent No.1, HPCL, filed a detailed reply, and the relevant portion is extracted as follows: - (i) That the HPCL had issued a tender, which was published on 23.07.2018. The technical evaluation of the tender was uploaded on 22.09.2018 and commercial evaluation was completed on 15.10.2018. After that letters of allotment were given on 17.12.2018.
4. The Respondent No.1, HPCL, filed a detailed reply, and the relevant portion is extracted as follows: - (i) That the HPCL had issued a tender, which was published on 23.07.2018. The technical evaluation of the tender was uploaded on 22.09.2018 and commercial evaluation was completed on 15.10.2018. After that letters of allotment were given on 17.12.2018. (ii) The requirement to participate in the bid was 135 Tank Trucks with capacity 18,000 ltrs. (18kl and above); and 48 Tank Trucks with capacity between 12,000 ltrs. and less than 18,000 ltrs. (12kl and less than 18kl). (iii) HPCL received offer from 645 Tank Trucks in both the categories, out of which, 606 Tank Trucks were technically qualified against the requirement of 183 Tank Trucks. (iv) In the category of 18Kl and above, HPCL received offer of 586 Tank Trucks, out of which, 548 Tank Trucks were technically qualified. The requirement under the said category was 135 Tank Trucks. (v) The tender process was finalized and induction process of Tank Trucks was in progress. As such, to say whether there would be a shortage of Tank Trucks so as to offer the short trucks to the petitioner would be a subsequent stage. The respondent also referred to Clause 5(d) of the tender, which specifically states that replacement of existing Tank Trucks shall be strictly subject to business requirement of location. (vi) Regarding fictitious calibration certificates, the stand of HPCL is that they had evaluated the bid by checking the certificates issued by statutory bodies like RTO, PESO and Legal Metrology. It is further clarified that at the time of technical evaluation, HPCL only checked the scanned copies of the certificates for prima facie satisfaction and it is only subsequent to finalization, they proceed further. It is further clarified that as a precautionary measure, HPCL got 22 Tank Trucks calibration certificates verified from the office of respondent No.6, Legal Metrology. (vii) Next stand of HPCL is that as per Clause 2.3.7 of Industry Transport Discipline Guidelines, calibration has to be done at oil company facility or as directed by the oil company and this clause applies only after execution of the contract, that is, at the time of execution of agreement. Thus, the pleadings to that effect are based on assumptions. (viii) In reply on merits, it is specifically stated that tendering process was done in free, fair, and transparent manner." 5.
Thus, the pleadings to that effect are based on assumptions. (viii) In reply on merits, it is specifically stated that tendering process was done in free, fair, and transparent manner." 5. Respondents No. 3 to 5 filed a joint reply. The private respondents contended that in response to the acceptance of the letter issued to them by respondents No.1 and 2, they had already started plying their trucks from January 2019. In reply to paragraphs 2.3 and 2.4 to 2.7, private respondents contended as under: - "Para 2.3: That the contents of this sub-para are absolutely wrong and vehemently denied. It is further submitted that the petitioners' contention that the tank trucks of the private respondents were open bodied and without calibration is incorrect since the certificates issued by the Government authorities clearly establish that they are tank trucks. Copies of the calibration certificates and certificates of registration of the tank trucks bearing registration nos. HR 39D-4369, HR 39D-4696, HR 39D-1894, HR 39D-1152, HR 39D-1784, HR 39D-0946, HR 39D-8346, HR 39B-7000 and HR 39D-3171, along with their respective calibration fee certificates, which have been granted Letter of Acceptance by HPCL are being annexed herewith as Annexures RA-1 (Colly). PARA 2.4 to 2.7: That the contentions raised in these sub-paras are false and misleading, hence denied. It is further submitted that the information supplied under the Right to Information Act, 2005 (Annexure A-5) to Mr. Ashwani Kumar S/o Mr. Ratan Singh Chahal was reviewed by the First Appellate Authority and vide information dated 17th May, 2019, the First Appellate Authority clarified that except tank truck bearing registration no. HR 39A7505, all the tank trucks mentioned in Annexure A-5 were inspected by Mr. Kamal Sareen, Inspector, Legal Metrology Ambala at the calibration tower of Indian Oil Corporation Terminal/Depot Ambala. A copy of the information dated 17th May, 2019 provided by the First Appellate Authority is being annexed herewith as Annexure RA-2. Thus, a conjunctive reading of Annexure RA-1 (Colly) and Annexure RA-2 makes it crystal clear that the tank trucks of the private respondents fulfill all the criteria laid down by HPCL in the DNIT (Annexure P-1). Resultantly, all the allegations leveled by the Petitioner against all the Respondents in the captioned writ petition are bald and baseless." 6. Respondent No. 6, Department of Legal Metrology, filed its separate reply.
Resultantly, all the allegations leveled by the Petitioner against all the Respondents in the captioned writ petition are bald and baseless." 6. Respondent No. 6, Department of Legal Metrology, filed its separate reply. Since the allegations are primarily against respondent No.6, as such, it would be appropriate to extract a relevant response, which reads as follows: - 2. "It is submitted that the petitioner has no cause of action against the answering respondent as the answering respondent has done his duty diligently and in good faith. The brief facts of the case relating to the answering respondent are that the answering respondent i.e. Inspector Legal Metrology has verified and stamped as per the procedure and specifications provided by the ninth schedule Part-1 calibration of vehicle's tanks for petroleum products and other liquids of the legal metrology (General) rules 2011 sub rule 14. The copy of same is annexed herewith as Annexure R-1. It is further submitted that the verification and stamping of vehicle tank number mentioned on Annexure P-5 had been done at tower of oil depot at Ambala only. The verification fees also has been received from concerned and the same had been deposited into the Government treasury vide challan no. 29778492, 36735496, 28994011 respectively dated 09.07.18, 06.08.2018 & 11.08.2018. The copy of the same is annexed herewith as Annexure R-2 (colly). Therefore the petitioner has no cause of action against the answering respondent and thus the present petition deserves to be dismissed against the answering respondent. 3. That the petitioner has malafidely and on the basis of false information alleged the answering respondent to be responsible for not checking the vehicles as per the rules and regulations. It is submitted that before the calibration (verification/ stamping) work is started the licensee of weights and measures check the same and if it is found in order he puts the same for calibration/stamping to the Inspector Legal Metrology. In the present case also the licensee had checked the vehicles on different dates and has also received labour fees according to the capacity of vehicle tank. The copy of the same is annexed herewith as Annexure R-3 (colly). It is also submitted that the Oil Depot do not charge any calibration fees and that they charge for water usage only.
The copy of the same is annexed herewith as Annexure R-3 (colly). It is also submitted that the Oil Depot do not charge any calibration fees and that they charge for water usage only. Therefore the alleged vehicles were properly checked and the present petitioner in order to get more of his tankers in business with the oil company has framed a false story trying to dislodge the other tenderers and demerit the answering respondent. Thus the present petition is false and devoid of any merit and thus deserves to be dismissed." 7. While replying on merits, in paragraph-2, respondent No. 6 mentioned the entire detail, which is reproduced as under: - Sr. No Reg. No. Cap acity Reg. Date in RTO As Tanker/ Oil Date of calibration (Deptt.) Explosive certificate issued dated Name of the owner Tanker 1. HR39- D-1784 29 KL 9.8.18 9.8.18 13.8.18 Ashok Garg 2. HR39- D-8346 29 KL 9.8.18 9.8.18 13.8.18 Ashok Garg 3. HR39- D-0946 29 KL 9.8.18 9.8.18 13.8.18 Ashok Garg 4. HR39- D-1894 29 KL 8.5.18 8.8.18 13.8.18 Ashok Garg 5. HR39- D-1152 29 KL 8.5.18 8.8.18 13.8.18 Ashok Garg 6. HR39- D-4696 29 kl 10.04.17 09.08.18 13.08.18 Rajbir Singh 7. HR39- D-4369 20kl 28.02.17 9.08.18 13.08.18 Sumit 8. HR39- B7000 20 KL 15.10.08 9.8.18 11.05.12 Rajbir Singh 9. HR37- D-6443 29 KL 20.10.15 6.08.18 12.8.16 Rajinder Singh 10 PB11C F-9543 29 KL 20.09.17 02.08.18 09.08.18 -do11. PB11C M-7043 29 KL 15.05.18 2.8.18 9.8.18 -do12. PB11B Y-8843 29 KL 10.8.16 06.08.18 17.08.16 Rajbir Singh 13. HR37- D-5243 28 KL 7/2015 10.8.18 3.4.19 Rajinder Singh 14. HR37- D-3843 24 KL 11/2015 3.8.18 21.12.15 Baldev Singh 15. PB11C M-7843 29 KL 15.5.18 2.8.18 09.08.18 -do16. PB11C M-6843 29 KL 15.05.18 02.08.18 09.08.18 Ravi Kumar 17. PB11C F-7243 29 KL 31.7.17 02.08.18 09.08.18 -do18. PB11B Y-8743 29 KL 08.08.16 6.8.18 30.8.16 -do19. PB11B U-8443 29 KL 19.01.16 6.8.18 22.1.16 -do20. HR37- D-6343 29 KL 10/2015 3.8.18 12.08.16 -do21. HR25 F 0141 Data not available 22. HR39 A 6688 20kl 30.03.17 10.08.18 18.08.1 7 Om Prakash 8. Respondent No. 7, Indian Oil Corporation, filed its separate reply.
PB11C F-7243 29 KL 31.7.17 02.08.18 09.08.18 -do18. PB11B Y-8743 29 KL 08.08.16 6.8.18 30.8.16 -do19. PB11B U-8443 29 KL 19.01.16 6.8.18 22.1.16 -do20. HR37- D-6343 29 KL 10/2015 3.8.18 12.08.16 -do21. HR25 F 0141 Data not available 22. HR39 A 6688 20kl 30.03.17 10.08.18 18.08.1 7 Om Prakash 8. Respondent No. 7, Indian Oil Corporation, filed its separate reply. Relevant portion of preliminary submissions is extracted as under:- "It is submitted that as per the records of the Respondent Corporation there is no entry of these vehicles in Ambala Terminal of the Indian Oil Corporation as has been stated by the PIO of the Indian Oil Corporation under the RTI Act." 9. The petitioner did not file any rejoinder to the replies of respondents No.1 to 5 and 7. However, rejoinder to the reply of respondent No.6 has been filed. By referring to Annexure P-5, it was explicitly alleged that inspection was not done in the oil depot of Indian Oil Corporation at Ambala. There is no proof of any other facility from whom it was done. 10. Ld. Single Bench allowed the writ petition to the extent that acceptance of the tenders of the private respondents for the purpose of work allotted to them by respondents No. 1 and 2 based upon Notice Inviting Tenders (Annexure P-1), declared it bad, and the same was ordered to be quashed and set aside having been obtained on the basis of procured calibration certificate. Challenging the aforesaid judgment, private respondents No. 3 to 5 filed this Intra Court Appeals under Clause 10 of the Letters Patent constituting the High Court of Judicature at Lahore, the 21st March 1919, as extended to the High Court of Himachal Pradesh. 11. We have heard learned counsel for the parties and gone through the pleadings. 12. The documents, which prescribed terms and conditions of tender for transporting Bulk POL products by road to Nalagarh IRD, are annexed as Annexure P-1. Clause 5 of the tender document mentions the rejection criteria. Clause 5(f) of the tender document states that the tenders without the required valid document mentioned in Sub Clause (f) will be rejected. The tender will be evaluated with the balance tank trucks subject to meeting the minimum tender tank criteria. The relevant document mentioned in Sub Clause (f) includes the Calibration Certificate.
Clause 5(f) of the tender document states that the tenders without the required valid document mentioned in Sub Clause (f) will be rejected. The tender will be evaluated with the balance tank trucks subject to meeting the minimum tender tank criteria. The relevant document mentioned in Sub Clause (f) includes the Calibration Certificate. Sub Clause (1) of Clause 5 states that the tenders not meeting the terms and conditions or which are incomplete will be summarily rejected. Clause 8 of this document mentions a technical bid. Sub-clause 11 of clause 8 mentions the requirement of attested copies of certain documents, including Calibration Certificate for each tank truck offered. Clause 40 states that successful bidders will be issued a letter of acceptance (LOA), and after that bidder will have to complete all formalities as specified in LOA, failing which LOA will be cancelled. It further states that the verification of the documents submitted by the successful bidder will be carried out after the issuance of LOA during induction of TT at the respective terminals/depot for which tender is floated. In case of any discrepancy between the documents submitted for the bid concerning the original or failure to produce the original document for verification and make available the tank trucks for induction, such person may even be blacklisted apart from taking over actions. The special terms and conditions are also part of this tender document. As per condition No.1 of special terms and conditions, no open body truck will be accepted. 13. The primary allegation of the petitioner against the private respondents is that the Calibration Certificate, which was submitted in their bid for the tender, was issued in connivance with respondent No.6, whereas in fact, no calibration had actually taken place. The allegations are that the tank trucks for which the 6th respondent issued the Calibration Certificate were never physically inspected, which could have been only done in a dedicated calibration facility that is approved for calibration jobs. Ld. Counsel for the petitioner submitted that as per the private respondents, the tank trucks were calibrated in the facility of Indian Oil Corporation Limited, i.e., respondent No.7. However, such trucks never entered such facility, and there is no entry of trucks in the gates.
Ld. Counsel for the petitioner submitted that as per the private respondents, the tank trucks were calibrated in the facility of Indian Oil Corporation Limited, i.e., respondent No.7. However, such trucks never entered such facility, and there is no entry of trucks in the gates. Learned Counsel further argued that the storage facility of any petroleum company is prone to any nefarious or terrorist activity and as such, entry is restricted, and given that the petroleum products can cause massive fire and explosions, and for these reasons, all entries and exits are duly recorded. Referring to the reply filed by the private respondents, Ld. Counsel contended that they did not attach any document or did not even mention through specific averment about entry and exits of trucks and dates, etc., in the facility of Indian Oil Corporation. Furthermore, proof of payment of water charges was attached in the reply, or even with the present appeal. 14. As per the reply filed by the 7th respondent, i.e., Indian Oil Corporation, it is stated on affidavit that as per the records of Indian Oil Corporation, there was no entry of such vehicles in its Ambala terminal. 15. A reference to Paragraph-18 of the judgment passed by learned Single Judge reveals that the original records were produced before the Court to ascertain whether the vehicles actually visited the facility of the 7th respondent, i.e., Indian Oil Corporation for the Calibration Certificates. 16. Rule 14 of Legal Metrology General Rules, 2011 formulated under Section 52 of the Legal Metrology Act, 2009 prescribes the procedure for carrying out calibration of vehicle tanks per its Ninth Schedule. The Ninth Schedule of Rule 14 of Legal Metrology General Rules, 2011, prescribes in minute details, the procedure for carrying out calibration of vehicle tanks, etc., for petroleum products and their liquids. Sub Clause (g) of Clause 4 of Ninth Schedule dealing with calibration procedure mentions that before starting calibration, the pipelines, outlet walls, and other connections shall be tested against leakage by partially filling and draining each compartment. For such a process, a sufficient quantity of testing medium is put in the compartment. 17. Rule 14 of Legal Metrology General Rules, 2011 is being reproduced for ready reference: 14. Procedure for carrying out calibration of vehicle tanks, etc. - The procedure for carrying out calibration of vehicle tanks, etc. shall be as is specified in Ninth Schedule.
For such a process, a sufficient quantity of testing medium is put in the compartment. 17. Rule 14 of Legal Metrology General Rules, 2011 is being reproduced for ready reference: 14. Procedure for carrying out calibration of vehicle tanks, etc. - The procedure for carrying out calibration of vehicle tanks, etc. shall be as is specified in Ninth Schedule. Part I Calibration of Vehicle Tanks for Petroleum Products and Other Liquids 1. Definitions (a) Vehicle tank - An assembly used for measurement and delivery of liquids comprising a tank which mayor may not be sub-divided into compartments, mounted upon a vehicle together with its necessary piping, valves, meters, etc. (b) Compartment - The entire tank, when this is not sub-divided; otherwise anyone of these sub-divisions of a tank designed to hold liquid. (c) Calibration - Verification and stamping of the capacity of the vehicle tank or its compartments. (d) Dip stick - A square or rectangular metal bar of brass or any other suitable hard material used to determine the depth of the liquid in the tank. (e) Ullage stick - A T-shaped metal bar of brass or other suitable material used to determine the depth of the level of liquid from the proof level. (f) Ullage indicator - A device bolted to the inside of a manhole neck ring with the indicator set to any desired level to which liquid in the tank is required to be filled. (g) Proof level - Reference level to which all depth measurements shall be related. (h) Dip pipe - A pipe rigidly attached at the top of the tank extending vertically downward up to approximately 15 cm from the bottom of the tank. The pipe shall have perforations at the top above the maximum liquid level. 2. Testing medium (a) Compartment testing - Water or other appropriate liquid shall be used as a testing medium in determining the capacity of vehicle tank compartment. (b) Meter testing - A vehicle tank meter shall be tested with a liquid of the same character or of approximately the same viscosity as the liquid to be measured through the meter. 3. Equipment and tools The following equipment and tools are required for calibration of vehicle tank. (a) Proving measures - When available, shall be checked for accuracy against an appropriate working standard measure.
3. Equipment and tools The following equipment and tools are required for calibration of vehicle tank. (a) Proving measures - When available, shall be checked for accuracy against an appropriate working standard measure. (b) Calibrated bulk meter - An accurate meter fitted with a preset valve, air eliminator and strainer, which has been checked for accuracy against an appropriate working standard measure. (c) A set of standard commercial measures. (d) Other equipment and tools, viz. hose pipe, scriber, punch, try square, tyre pressure gauge, hammer, etc. 4. Calibration procedure (a) Vehicle tanks used as measures shall be calibrated as capacity measures. In the case of meter equipped tanks the meter shall be treated as a separate measuring instrument for purpose of calibration. (b) The compartment capacity or capacities shall be taken as including the capacities of the delivery lines leading from the emergency, safety or master valve to the outlet valve (discharge valve) provided that in the case of vehicle compartment terminating in a single delivery pipeline fitted with an outlet valve, the compartment capacity or capacities shall be taken as excluding the capacity of the delivery pipeline. A notice shall be prominently exhibited on the vehicle tank indicating clearly and indelibly the following: - Marked capacity includes capacity of delivery line; or Marked capacity excludes capacity of delivery line (as the case may be). The safety or master valve shall be positioned at the lowest point of outlet from the compartment. (c) The proving measure or bulk meter should be mounted on an overhead gantry or a separate frame work a convenient position above a firm and level platform, preferably of concrete on which the vehicle stands during calibration. (d) The vehicle shall be placed in a level position before commencing calibration as the accuracy of calibration depends on the level of the tank; the sequence in which compartments are calibrated should be such as to minimise unequal spring deflection on the axles of the vehicle. (e) The front and rear tyres of the vehicle should be at the correct pressures. The tyres should be inspected for wear which should be reasonably even and there should not be excessive difference in the tread between the front set of tyres and the rear set at the time of calibration. (f) The interior of the compartment should be inspected and cleaned where necessary.
The tyres should be inspected for wear which should be reasonably even and there should not be excessive difference in the tread between the front set of tyres and the rear set at the time of calibration. (f) The interior of the compartment should be inspected and cleaned where necessary. (g) Before starting calibration, the pipelines, outlet valves and other connections shall be tested against leakage by partially filling and draining each compartment in turn through the outlet valve. During the process sufficient quantity of the testing medium should be introduced inside the compartment to wet the internal surface of the tank and pipelines. (h) After taking the precautions mentioned above, the compartment to be calibrated shall be filled with appropriate proving measures or bulk meters to the marked capacity of the compartment with the delivery lines leading to the outlet valve full or empty as provided in (b) above. The dip/ullage mark shall be taken carefully and the line shall be cut on the dip/ullage stick at right angles to the axis with the help of try-square and scriber. If an ullage indicator is used, it shall be correctly set and sealed. (i) A mark shall also be made on the dipstick to indicate the 'proof level'. In the case of ullage stick, the distance from the ullage point to the T-joint shall be marked on the stick. Note: The sequence for calibrating compartments should be sequence of filling them. The sequence of discharge shall be in the reverse order to that of filling. (j) Each compartment should be left full before proceeding to the next in sequence. 5. Maximum permissible error (a) Proving measures shall have the following capacities and shall be adjusted within the following permissible errors: - Capacity, Litres Permissible error, millilitres ( ) 50 50 100 100 200 200 500 500 1000 1000 1500 1500 2000 2000 5000 5000 (b) The maximum error for vehicle tank compartments shall be 0.05 per cent in excess of the marked capacity of the compartments. 6. Markings (a) The vehicle shall have a brass plate riveted in a prominent position on it to receive the Legal Metrology Officer's stamps. The brass plate shall bear the following particulars: title of Legal Metrology Act, name of owner of vehic1e, vehicle registration number, and the serial number and capacity of each compartment.
6. Markings (a) The vehicle shall have a brass plate riveted in a prominent position on it to receive the Legal Metrology Officer's stamps. The brass plate shall bear the following particulars: title of Legal Metrology Act, name of owner of vehic1e, vehicle registration number, and the serial number and capacity of each compartment. Space should be provided on the plate for the Legal Metrology Officer's stamps. A simple design for a plate is shown below. (b) The capacity of the compartment shall be indelibly marked on the manhole cover of the compartment and also painted on each side of the compartment so that it is clearly visible. If there are more than one compartment, then each compartment shall have its capacity marked separately as above and the compartment numbered serially. The number of the compartment shall also be marked on the discharge valve pertaining to the compartment. (c) The vehicle registration number as well as the capacity of the compartment shall be indelibly marked on the dip/ullage stick at the top end. If there is more than one compartment, the different faces of one dip stick may be used for markings and each face shall bear the vehicle number, the serial number of the compartment, the proof and dip lines of that compartment and the capacity of the compartment. The Legal Metrology Act, 2009 Name of the company: ............................ Vehicle tank No. ...................................... Compartment Number Compartment Capacity (in litres) Space for legal Metrology Officer's stamp - NAME PLATE 18. Since calibration is a technical thing and requires expertise, necessarily, the calibration is carried out in a dedicated facility. In the present case, the private respondents contended that the calibration of their majority of tank trucks had taken place in the facility of Indian Oil Corporation at Ambala. 19. The Calibration Certificate had to be obtained by private respondents. Thus, the process through which they had obtained the Calibration Certificate would be only with them and none else. The pivot on which the entire case of the petitioner stand is that the 7th respondent gave these Calibration Certificates without physical verification. In other words, these were procured by the 6th respondent without following the proper procedure established under the Rules. 20. The opportunity to counter the allegations was availed by the private respondents when they had their joint reply on 13.11.2013.
In other words, these were procured by the 6th respondent without following the proper procedure established under the Rules. 20. The opportunity to counter the allegations was availed by the private respondents when they had their joint reply on 13.11.2013. A perusal of Paragraphs-2.3 to 2.7 of the response reveals their defence. In Paragraph 2.3, the stand is that the tank trucks were not open-body. However, this was not the point in issue. There is no specific pleading about the manner and mode in which the private respondents had got the calibration certificates, after following the procedures. 21. The controversy revolves around a narrow compass: whether Calibration Certificates issued by the 7th respondent were done after following the procedure laid down under the Rules or not. In fact, in the reply, the private respondents do not state in clear words that they followed the procedure prescribed under the Rules by getting their tank trucks available for the physical process required in calibration. 22. The private respondents did not place on record any supporting documents to establish that the trucks had visited the Calibration Centre; they had paid the water charges, and the truck en-route to such Centers had paid any toll tax showing the drive to the calibration facility and the return. Since the private respondents did not produce such documents, they failed to discharge the burden which has shifted on them. However, non-furnishing of water charges and other evidence nowhere implies that such documents did not exist. The point is that in the present matter, the respondents failed to place the same on the record, and this Court has to draw an adverse inference under S. 114(g) of Indian Evidence act, 1872. The point for determination before this Court is the compliance of terms and conditions of the Tender document floated by HPCL. As per Clause 40 Sub Clause (i): after issuing a letter of acceptance to successful bidders, they were supposed to produce the document for verification. The relevant Clause is extracted as under: - "1. Successful bidders will be issued Letter of Acceptance (LOA). Bidders will have to comply with all formalities as specified in the LOA, failing which the LOA may be cancelled, EMD forfeited and the action taken as per HPCL Holiday Listing Guidelines.
The relevant Clause is extracted as under: - "1. Successful bidders will be issued Letter of Acceptance (LOA). Bidders will have to comply with all formalities as specified in the LOA, failing which the LOA may be cancelled, EMD forfeited and the action taken as per HPCL Holiday Listing Guidelines. The Guidelines for Holiday Listing (banning of business dealing) are available on HPCL website (Http://www.Hindustanpertroleum.com/TendersAndContracts) Verification of documents submitted by the successful bidders will be carried out after the issuance of LOA during induction of TT at the respective terminal/depot for which the tender is floated. In case of any discrepancy between the documents submitted in the bid with respect to the originals or failure to produce the original document for verifications and make available the TT for induction, HPCL reserves the right to: 1. Take action against the bidder(s) as per HPCL Holiday Listing Guidelines. 2. Black List the TTS offered. Both of the above". 23. A perusal of the replies of HPCL and private respondents do not reveal that any verification of the calibration certificate was done in pursuance of the clause mentioned above. Failure to plead, furnish documents and the information, which the private respondents were supposed to possess and know, reminds us of the legal maxim, Acta exteriora iudicant interiora secreta - Outward acts indicate the inward intent. 24. Hpcl is a listed company with its majority stake, directly or indirectly owned by the Government of India. The Management of this public company is a trustee of the funds of shareholders, which include small shareholders. It is in the interest of the State that everyone uses properly his own property- Interest reipublicae ut quilibet re sua bene utatur. 25. In M C Mehta v. Kamal Nath, (1997) 1 SCC 388 , Hon'ble Supreme Court had accepted the doctrine of public trust, which the Roman Empire had propounded on the principle that certain common properties such as rivers, seashores, forests, and the air would be in trusteeship, for the free and unimpeded use of the general public. Given above, in a democratic welfare modern State, like India, all the State owned assets would fall under the public trust doctrine. 26.
Given above, in a democratic welfare modern State, like India, all the State owned assets would fall under the public trust doctrine. 26. Keeping in mind the financial implications due to non- submitting of evidence qua calibration, the burden of which was on successful bidders in terms of Clause 40 (i) of the Tender document, which the appellant/private respondents failed to meet; there is no material to believe that the Calibration Certificates issued by respondent No.7 were done after following the procedure established under the Legal Metrology Rules, 2011 made under the Legal Metrology Act, 2009. Given the above analysis, the Letter of Acceptance allotted to the appellant/private respondents could not have been finally accepted, and the same is liable to be set aside. 27. The issue is significant because pilferages during transit can cause massive accidents, fires, and explosions, putting life and property at substantial risk. The safeguard is there so that there is no opportunity to steal petroleum products from the trucks in transit. Thus, a foolproof system has to be put in place. The existing method of calibration is undoubtedly not 100% foolproof, but it is followed because the Legal Metrology Rules, 2011, mention about it. Howsoever outdated it may sound, it is still relevant to curb the pilferage and misappropriation of fuel during its journey from the depot to the endpoint. The department of weights and measures calibrates the tank trucks to ensure that they do not go out of their prescribed margin of accuracy. What is forgotten is that even if the difference in measurements is slight and may not look huge in one trip but considering the number of trips during the entire five-year period of the contract, the quantity of pilferage, if any, is likely to be of huge and significant amount. 28. In India, the most common method we use to ship various finished products from multiple depots/terminals to petrol pumps is through tank trucks. These tank trucks may be company-owned, dealer-owned, or contractor-owned (third party). 29. There are different methods of measuring the fuel at the time of dispatch to the petrol pumps. The most common one is the use of 'Flowmeters.' These are either electronic or mechanical devices that measure the fuel's volumetric flow through the pipeline connected to the trucks for loading it. The flowmeters are used widely all over the world and are pretty accurate.
The most common one is the use of 'Flowmeters.' These are either electronic or mechanical devices that measure the fuel's volumetric flow through the pipeline connected to the trucks for loading it. The flowmeters are used widely all over the world and are pretty accurate. Given the growth in the technology leading to the availability of high precision flowmeters, which quite accurately measure the volumetric flow, if such gadgets are installed in the tank trucks, it would stop theft during transit and eliminate the risk of fires explosions, saving loss of life and property. 30. Unlike the tanks of an oil company depot, as on now, most of the Tank trucks do not have any measurement gauges installed inside them. The way to measure the quantity of fuel inside a truck is through what we call a physical dip-rod. So, each compartment inside a tank truck is physically calibrated by the W&M department. A dip rod is provided for each compartment. The W&M department will mark a line on the dip rod to indicate that if the fuel is up to this level, then the quantity is equal to the specified holding capacity of that compartment. 31. As such, there is a two-fold check. One at the oil company side, where they measure the quantity being loaded through a flowmeter. The second at the Tank truck, using their calibrated dip rod. The critical issue is, the receiver can only check using the dip rod when the tank truck reaches its destination. Therefore, the measurement to be relied upon is the calibrated dip rod. The oil company's flowmeter only remains a supporting mechanism. 32. There are many technologies available these days. One can put an electronic lock on the tank truck, which can only be opened using a code. Once the oil company locks the compartment, they will transmit the code electronically to the recipient, and only they can open the lock once the truck reaches. This way, en-route pilferage is avoided. Additionally, the truck is fitted with a GPS tracker that can sense and record if it goes off its route or stops anywhere. The petrol pump dealers can track the truck sitting inside their work places and download the truck's route report once it reaches their pumps. This way, the dealers can check if there is any suspicious behavior by the tank truck in transit. 33.
The petrol pump dealers can track the truck sitting inside their work places and download the truck's route report once it reaches their pumps. This way, the dealers can check if there is any suspicious behavior by the tank truck in transit. 33. There have been challenges concerning the safe transportation of petroleum products to petrol pumps with correct quality and quantity. As third parties are involved in this process, the en-route oil pilferage is one of the more significant challenges. En-route oil pilferage results in multiple downsides - enormous economic loss, environmental pollution, and even human casualties, mainly because it is not easy to detect and correct quickly. 34. Over the years, the oil companies have tried to improve the existing tank locking system. From lead wire seals, plastic locks to padlocks, the oil companies have introduced various mechanisms to secure the Tank Trucks transporting products from their depots to the petrol pumps. With the advent of technology, many secured mechanisms in the form of modification in locking arrangements, Vehicle Tracking system and electronic Tank Truck Locking System (e-TLLS) have been introduced, which provide audit trails in case of any tampering and subversion. Now, a foolproof technology is available to stop the en-route pilferage of Petroleum products. 35. The security locking system comprises padlocks, padlock keys and Master keys, and locking strips. In this system, every tank truck carrying delivered petroleum products is fitted with security locks to secure the dome covers and bottom delivery valves so that no tampering with quality & quantity of product en-route is possible after the truck leaves the loading base till the time tank truck reports at the destination. Each compartment has an opening at the top and an outlet valve at the bottom. Apart from the central opening meant for filling, there is also an inlet at the top for the dip rod. The slots are provided with threaded caps and are covered with a hemispherical dome cover or lid. The dome covers are hinged at one end and have a locking arrangement at the other end. After loading, the TT top hatches (dome covers) and bottom valves are locked with existing mechanical locks. Each dome cover and the bottom valve are locked individually. A particular set of mechanical locks is assigned to a dealer. One set of key(s) of this set of locks is with the dealer.
After loading, the TT top hatches (dome covers) and bottom valves are locked with existing mechanical locks. Each dome cover and the bottom valve are locked individually. A particular set of mechanical locks is assigned to a dealer. One set of key(s) of this set of locks is with the dealer. The depot in charge has one master key of all locks within his jurisdiction. 36. Vehicle Tracking System (VTS) facilitates monitoring the movement of these tank trucks from the loading depot to the petrol pump (or any other receiving destination) and back on a real-time basis. 37. A vehicle-mounted unit (VMU) device is mounted on each Tank truck which contains a GPS receiver & GSM/GPRS modem. The GPS receiver continuously receives signals from the GPS Satellites, which determines the physical position (Latitude /Longitudes) and the speed of the Tank truck and communicates to the VTS server through the GSM network and displays the positional parameters of the tank truck. This system ensures effective monitoring of each tank truck, which transports petroleum products during and after the trips. 38. Tank Truck Electronic locking system is the latest in the industry in the deployment of secure locking mechanism in the form of electronic Tank Truck Locking System (TTLS), which provide various audit trails /alerts in case of tampering /subversion. As per the new system, once the tank truck reaches the Geo-fence of the petrol pump, a one-time password will be sent to the registered number to open the lock. 39. The sixteenth-century proverb says, 'Where there's a will, there's a way.' However, the time alone will tell about the existence of any such will with the Executive as well as with the public sector petroleum companies. 40. To conclude, a reading of the elaborate judgment authored by learned Single Judge, which is supported by Judicial precedents, wherein the Hon'ble Judge has also referred to almost all technical precedents on the point in issue, and the facts in detail, shows that the Court arrived at the similar conclusion, to which we have also reached. 41. Given the opaqueness of calibration certificates, Ld. Single Judge rightly interfered, to which we concur. Thus, there is no merit in this appeal, and is dismissed.