MAHAPET INDIA PVT LTD THROUGH ITS AUTHORIZED SIGNATORY AND DIRECTOR V S V KUMAR Vs. UNION OF INDIA THROUGH ITS SECRETARY TO THE GOVERNMENT MINISTRY OF RAILWAYS

JUDGEMENT

(1.) IT has been stated that the petitioner is a company incorporated under the Companies Act, 1956, having its registered office at Chennai. The petitioner is a leading manufacturer of Preforms, for the last two years, with an installed capacity of 2400 tonnes of preforms (equivalent to twelve crores of water bottles per year), with an annual turn over of rupees seven crores.

(2.) IT has also been stated that the petitioner had installed machines manufactured by ASB International Private Limited, which has a market share of more than 45%, in India. The machines manufactured by ASB International Private Limited, is used in India for manufacturing bottles, for the brands like Qua, Bisleri, Himalaya etc. ASB International Private Limited is a subsidiary of Nissei ASB Machine Company Limited, Japan, which has a turnover of nearly rupees five hundred crores and having a market share of approximately 50%.

(3.) THE impugned prequalification condition is ex-facie illegal, arbitrary, discriminatory and does not subserve the object of the tender process. THE said specification has no correlation to the object sought to be achieved. THE prequalification condition prescribed by the second respondent disentitles a number of manufacturers, who have been in the field for a long time and who have earned a good reputation in the business, from participating in the tender process. THE impugned prequalification condition is in violation of the principles of equality enshrined in Article 14 and it is contrary to Articles 19(1)(g) and 301 of the Constitution of India. THE impugned prequalification condition has been prescribed by the second respondent, only with the view to favour certain specified manufacturers in an arbitrary and illegal manner. In such circumstances, the petitioner has preferred the present writ petition before this Court, under Articles 226 of the Constitution of India.