A. P. Web Offset Printers Association v. State of Andhra Pradesh
2024-02-13
V.SUJATHA
body2024
DigiLaw.ai
JUDGMENT V. Sujatha, J. - The Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:- '....to issue Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in issuing Tender Notification vide e-procurement Notice No.50/T1/2023 dated 02.02.2024 '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' without considering the representation dated 09.01.2024 as illegal and arbitrary and violative of Article 14, 19 (1)(g) and 21 of the Constitution of India, consequently (a) to direct the 1st respondent to dispose of the representation dated 09.01.2024 by giving an opportunity of personal hearing to the petitioners, further (b) to quash the tender Notification vide e-procurement Notice No.50/T1/2023 dated 02.02.2024 '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...' 2. The factual matrix in W.P. No. 3209 of 2024 is as follows: Petitioner No.1 is a Society registered under the Provisions of the A.P. Societies Registration Act, 2001 and the other petitioner Nos.2 to 59 are its members. The Members of the petitioner No.1 Association are all Micro, Small and Medium Enterprises Certificate Holders issued by the Central Government under the provisions of Micro, Small and Medium Enterprises Act, 2006 and engaged in the business of Web Offset Printing services. 3. The Government of A.P. called for Tenders for printing Text Books and Work Books (4 colours) etc. and the required paper for printing the text books and workbooks will be supplied by the Government. The turnover of the Members of the Petitioners Association would be around Rs. 50,00,000/- to Rs.1,50,00,000/- per annum. Up to 2014 the petitioners used to operate single colour equipment/machinery for the purpose of printing and the cost of the unit is about Rs.25,00,000/-. Subsequently, at the instance of the Government of A.P., the petitioners were directed to adopt colour upgradation, so they further invested about Rs.90,00,000/- per machine for the said purpose.
50,00,000/- to Rs.1,50,00,000/- per annum. Up to 2014 the petitioners used to operate single colour equipment/machinery for the purpose of printing and the cost of the unit is about Rs.25,00,000/-. Subsequently, at the instance of the Government of A.P., the petitioners were directed to adopt colour upgradation, so they further invested about Rs.90,00,000/- per machine for the said purpose. Subsequently, for awarding of the printing work by the Government, the petitioners were directed to adopt technology upgradation in the year 2021, accordingly, they invested Rs.1 Crore per machine by borrowing amounts from the Financial Institutions. 4. The petitioners were engaged by the Government for the previous year 2023-24 and they have duly executed the Text Book and Work Books printing as entrusted by the Government. The bills due and payable by the Government with respect to printing of Text Books is around 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.1 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.50/T1/ 2023 dated .01.2024 and directed to submit the objections by the General Public/Entrepreneurs, 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.10 Crores for the preceding three years. The said tender is 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.1 also submitted the representation dated 09.01.2024 to respondent No.1. A.P. Government Text Book Press for deviating the tender policy existing for the last 41 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. 5.
Petitioner No.1 also submitted the representation dated 09.01.2024 to respondent No.1. A.P. Government Text Book Press for deviating the tender policy existing for the last 41 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. 5. Majority of state governments in the India are being called Tenders without paper tender and encouraging and protecting their respective local MSMEs, so as to provide employment to the unemployed youth. It is mentioned in the draft copy that the estimated cost per page is 34.2 paisa. It has been calculated on the paper price of previous Academic Year. Further, now paper prices has come down by 20 to 30% when compared to previous Academic Year. So, in the event of calling tenders without paper, the tender cost per page will come down to 26 paisa. 6. 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. Hence it will be additional burden of 13% to the Government Exchequer. If tender goes to outside State printer, the entire GST amount will go to respective other States. In such a case, A.P Government has to lose huge GST amount in crores. 7. 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 engaged in the business of Web Offset Printing is arbitrary and violative of Article 14, 21 of the Constitution of India. 8. Further, imposing a condition that the turn over of the bidder above Rs.10 Crores is also a tailor made condition so as to avoid the Micro, Small and Medium Entrepreneurs in the State totally. Objections submitted by the petitioners dated 29.01.2024 were considered as an eyewash and recommended to allocate 25% out of the total quantum of work sought to be called tenders to the MSME entrepreneurs. Respondent No.1 so far not considered representation of the petitioners dated 09.01.2024 by giving an opportunity of personal hearing to them.
Objections submitted by the petitioners dated 29.01.2024 were considered as an eyewash and recommended to allocate 25% out of the total quantum of work sought to be called tenders to the MSME entrepreneurs. Respondent No.1 so far not considered representation of the petitioners dated 09.01.2024 by giving an opportunity of personal hearing to them. Respondent No.2 published a tender notification vide e-procurement Notice No.50/T1/2023, dated 02.02.2024 calling tenders under National Competitive Bidding for the work as under, "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." 9. The conditions of the tender virtually eliminating Micro, Small and Medium Enterprises totally eliminating the tender process is arbitrary and against the public interest. Petitioners submitted representation to the Government/respondent No.1 for consideration of their grievances vide representation dated 09.01.2024 and the Government has to take a decision on the overall issue of calling tenders for printing 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 violative of Article 14, 19(1) (g) and 21 of the Constitution of India. Without disposing of their representation dated 09.01.2024 issuing a tender notification dated 02.02.2024 vide e-procurement Notice No.50/T1/2023, dated 02.02.2024 calling tenders for the work "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 202425." is illegal and arbitrary and against the principle of legitimate expectation apart from violation of Article 14, 19(1)(g) and 21 of the Constitution of India. Hence, the writ petition. 10. At the stage of admission, learned Government Pleader for School Education produced copy of Lr.Rc.No.50/T1/2023 dated 07.02.2023 received from Director, A.P. Government Text Book Press, Guntur, wherein it is stated Government has issued G.O.Ms.No.2, School Education Dept, dated 10.01.2024 and permitted the Director of A.P. Government Textbooks Press to prepare the tender document with the conditions specified in the G.O. and forward it for Judicial Preview. In pursuance of the instructions issued in GO.Ms.No.2, respondent No.2 has prepared a tender document and submitted for Judicial Preview on 18.01.204.
In pursuance of the instructions issued in GO.Ms.No.2, respondent No.2 has prepared a tender document and submitted for Judicial Preview on 18.01.204. In order to invite suggestions and objections from the public, the said document 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. In response to the same, 48 objections were received by the Judicial Preview. Wherein, The A.P. Web offset Printers Association / petitioners also submitted representations on 24.01.2024 and 29.01.2024. The Chairman, Judicial Preview has forwarded the representations to respondent No.2 along with instructions to provide response to each objection. Immediately, respondent No.2 has submitted detailed response to the Judicial Preview on each and every objection. Upon reviewing all objections, the Honorable Chairman, Judicial Preview approved the textbooks printing tender with certain directions for modification of the tender document. As per the suggestions made by the judicial purview all necessary modifications were made and the tender document was floated in A.P. e-procurement portal on 03.02.2024 and the same shall be available up to 16.02.2024 for enabling bidders to participate in the textbooks printing work. 11. It is further stated that when one method is convenient, viable and 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 books & work books and dictionaries on such paper being supplied to them. As the tender is floated at national level, it is open for the printing firms located in state of AP also 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 L1 price of reverse auction and those 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.10 crore annual turnover is prescribed for specific purpose in this tender.
The provision of Rs.10 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.10 crore turnover. As per G.O.Ms.No.94, I&CAD (PW-COD), dated 01.07.2003, one out of the five years annual turnover is the criteria. Hence, the clause imposed in the tender document by fixing Rs. 10 Crores annual turnover in any one out of the last five financial years covering 2018-19 to 2022-23. 12. In compliance with the directions of the Judicial Preview, the tender document has been prepared and floated in the AP-e-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. 13. Heard learned counsel for the petitioners and learned Government Pleader for School Education Department. Facts are not in dispute. The main grievance of the petitioners is that State issued tender Notification vide e-procurement Notice No. 50/T1/2023 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. 14. The relevant portion of the representation dated 09.01.2024 is as follows: 'We have come to know from reliable sources that for the ensuing academic year 2024-25, nation-wide tenders 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. 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 tenders for which act kindness we shall ever be grateful to you.' 15. In pursuance of the instructions issued in G.O.Ms. No.2, respondent No.2 submitted the tender document for judicial preview on 18.01.2024.
Keeping in view all the above factors into account, we beseech you, Sir, to forthwith direct the concerned not to go for nation-wide tenders for which act kindness we shall ever be grateful to you.' 15. In pursuance of the instructions issued in G.O.Ms. No.2, respondent No.2 submitted the tender document for judicial preview on 18.01.2024. In order to invite suggestions and objections from the public, the said document 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. In response to the same, 48 objections were received by the Judicial Preview. Wherein, the A.P. Web offset Printers Association/ petitioners also submitted representations on 24.01.2024 and 29.01.2024. Apart from other submissions, the main prayer made in the representation dated 29.01.2024 submitted by the petitioner No.1 is as follows: 'As explained above new with paper tender is against to local MSMEs as their turnovers and economical situation is not permitting them. Keeping in view all the above factors into account, we beseech you, Sir, to forthwith direct the concerned not to go for nation-wide tender and call new without paper tender as per old practice followed upto Academic Year 2023-24, for which act of kindness we shall ever be grateful to you. In addition to our detailed submissions above we request that we may kindly be permitted/allowed to submit bid collectively and combinedly on behalf of our AP EB OFFSET PRINTERS Association to become eligible in the tender, bidding process as stipulated by the Govt by taking combined eligibility of we all the members.' It is evident from the representations dated 09.01.2024 and 29.01.2024, the main request of the petitioners is to direct the concerned not to go for nation-wide tender by deviating the practice. The said prayer was considered by the Judge, Judicial Preview, Andhra Pradesh. The relevant portion of the findings of Judge, Judicial Preview is as follows: 'So far as the deviation of practice concerned, when same is convenient, viable and economical to the Govt., there is nothing to find fault for no vested right accrue to the printers to make a claim for State has to go for separate tenders one for procurement of paper and other for printing of text books & work books and dictionaries on such paper being supplied to them.
So far as the AP Web offset printers Association to be permitted to submit the bid collectively on behalf of the members of it by taking combined eligibility all the members concerned, it is not their case that the Association in its name did any work by submission of bids and got the technical eligibility therefrom. Hence said request is rejected for not even a joint venture or consortium permitted with two or three members and it is not possible to permit the association with , several members of it by taking the individual members eligibility as e technical eligibility without the association having on its own the technical eligibility.' 16. Therefore, the prayer made in the representation dated 29.01.2024 was considered by the Judge, Judicial Preview. It can be said that the prayer made in the representation dated 09.01.2024 was also considered as the prayer made in the representation dated 09.01.2014 and objections dated 29.01.2024 submitted before the Judge, Judicial Preview is one and the same. 17. Further, no tender was issued by 09.01.2024. Petitioner No.1 submitted representation on coming to know about the tender to be issued from reliable sources and the same was specified in the representation itself. At the cost of repetition the same is reproduced hereunder, for better appreciation: 'We have come to know from reliable sources that for the ensuing academic year 2024-25, nation-wide tenders 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. 18. Hence, there is no cause of action as on 09.01.2024, on which date petitioner No.1 submitted representation. Therefore, petitioners cannot seek to quash the tender notification vide e-procurement Notice No.50/T1/2023 dated 02.02.2024 on the ground that the representation dated 09.01.2024 submitted by petitioner No.1 is pending before respondent No.1. 19. Learned Government Pleader for School Education relied on the judgment of the Hon'ble Apex Court in 'M/s. N.G. Projects Limited Vs. M/s. Vinod Kumar Jain and others, AIR 2022 SC 1531 ', wherein it is held that the construction of road is an infrastructure project and keeping in view the intent of the legislature that infrastructure 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.
M/s. Vinod Kumar Jain and others, AIR 2022 SC 1531 ', wherein it is held that the construction of road is an infrastructure project and keeping in view the intent of the legislature that infrastructure 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. 20. In 'Jagdish Mandal Vs. State of Orissa, (2007) 14 SCC 517 ', the Hon'ble 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 in matters relating to tenders or award of contracts, certain special features should be borne in mind. A contract is a commercial transaction. Evaluating tenders and awarding contracts are essentially commercial functions. Principles of equity and natural justice stay at a distance. If the decision relating to award of contract is bona fide and is in public interest, courts will not, in exercise of power of judicial review, interfere even if a procedural aberration or error in assessment or prejudice to a tenderer, is made out. The power of judicial review will not be permitted to be invoked to protect private interest at the cost of public interest, or to decide contractual disputes. The tenderer or contractor with a grievance can always seek damages in a civil court. Attempts by unsuccessful tenderers with imaginary grievances, wounded pride and business rivalry, to make mountains out of molehills of some technical/procedural violation or some prejudice to self, and persuade courts to interfere by exercising power of judicial review, should be resisted. Such interferences, either interim or final, may hold up public works for years, or delay relief and succour to thousands and millions and may increase the project cost manifold.
Such interferences, either interim or final, may hold up public works for years, or delay relief and succour to thousands and millions and may increase the project cost manifold. Therefore, a court before interfering in tender or contractual matters in exercise of power of judicial review, should pose to itself the following questions: (i) Whether the process adopted or decision made by the authority is mala fide or intended to favour someone; or Whether the process adopted or decision made is so arbitrary and irrational that the court can say: "the decision is such that no responsible authority acting reasonably and in accordance with relevant law could have reached"; (ii) Whether public interest is affected. 21. If the answers are in the negative, there should be no interference Under Article 226 of the Constitution of India. 22. In the present case also, the process adopted by the authorities is not intended to favour someone and there is no mala fide and no public interest is affected. Therefore, the impugned tender cannot be quashed. 23. In 'Uflex Ltd. v. Government of T.N., (2022) 1 SCC 165 ', the Hon'ble Apex Court stated that the enlarged role of the Government in economic activity and its corresponding ability to give economic "largesse" was the bedrock of creating what is commonly called the "tender jurisdiction". The objective was to have greater transparency and the consequent right of an aggrieved party to invoke the jurisdiction of the High Court Under Article 226 of the Constitution of India beyond the issue of strict enforcement of contractual rights under the civil jurisdiction. However, the ground reality today is that almost no tender remains unchallenged. Unsuccessful parties or parties not even participating in the tender seek to invoke the jurisdiction of the High Court Under Article 226 of the Constitution. 24. Having regard to the law laid down by the Hon'ble Apex Court in the judgments (referred supra) and since the representation dated 09.02.2024 is not connected to the present impugned tender notification as the same was submitted much before issuance of the impugned tender, and on the other hand, the subsequent objections submitted by petitioner No.1 dated 29.01.2024 were already considered by the Judge, Judicial Preview, the writ petition is liable to be dismissed. 25. Accordingly, the writ petition is dismissed. No costs.
25. 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. Miscellaneous petitions pending, if any, in the Writ Petitions, shall stand closed.