Madras High court sets aside GO inviting zone-wise tenders for eggs supply

Chennai: The Madras high court has set aside a GO dated August 20, 2018, of the state government inviting tenders for supply of eggs for its noon meal scheme zone-wise, excluding the egg processing units.

When a batch of writ petitions from Suvarnabhoomi Enterprises, by its authorised signatory R Lokeshkumar and 11 others came up for hearing on Thursday, Justice R Mahadevan set aside the tender notification.

The judge observed that the policy decision of the government can always be subjected to judicial review on grounds of unreasonableness, discrimination, arbitrariness, perversity and mala fides. The GO modifying the state-wise tender to that of a zone-wise tender does not contain any valid and acceptable reason warranting the modification.

The GO also does not contain any reason to come to the conclusion that zone-wise tenders would be more beneficial to the government, especially when the 2012 GO was confirmed by a division bench of this court in April 2014 and upheld by the Supreme Court in April 2015.

The GO has been issued within a short span of time i.e., within six working days and there is no nexus corresponding to the object sought to be achieved and the decision to introduce zone-wise tender and the exclusion of egg suppliers from participation cannot be called fair, just and legally valid.

The terms and conditions framed in the impugned tender notification are in violation and contrary to the relevant Act and Rules. There is no basis to state that producers of eggs would be more suitable than the egg suppliers to ensure adequate and proper uninterrupted supply of eggs to several thousand noon meal centres all over the state. Thus, this court is of the opinion that the 2018 GO and the tender notifications have nothing to offer to the beneficiaries, who are covered under the Noon Meal programme.

The judge said the authorities concerned should issue a fresh tender notification, in terms of an earlier GO dated October 17, 2012 and strictly in accordance with the Act and Rules.

The existing suppliers shall continue to supply the eggs at the same quantity and at the same price as originally awarded in the contract and as per their undertaking affidavits dated October 26, 2018, filed before this court, till the completion of the new tender process and selection of new suppliers.