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Supreme Court of India

M/S. S.S. & COMPANYversusORISSA MINING CORPORATION LIMITED

Citation
2008 INSC 421
Decided
28 March 2008
Disposal
Dismissed

Holding

The amendments to the NIT eligibility criteria, including the removal of the six‑month margin and the exclusion of minor‑mineral experience, were not arbitrary, unreasonable or mala fide; the corporation acted within its lawful discretion.

Summary

The Orissa Mining Corporation issued a series of Notice Inviting Tenders (NITs) for raising, calibration and transport of iron ore. In NIT‑85 the corporation amended eligibility clause 8(vii) by removing a six‑month overlapping margin and clause 8(i) by excluding experience with minor minerals. Two appellants, M/s. S.S. & Company and M/s. Faridabad Gurgaon Minerals, challenged these amendments as arbitrary, unreasonable and mala fide. The High Court dismissed the writ petitions, and the Supreme Court affirmed that the corporation’s amendments were within its discretion, not arbitrary or mala fide, and that the distinction between minor and major minerals is a recognised industry standard. Consequently, the appeals were dismissed.

Issues considered

  • The amendment of clause 8(vii) removing the six‑month overlapping margin – whether it is arbitrary, unreasonable or mala fide.
  • The amendment of clause 8(i) to exclude minor‑mineral experience – whether it is arbitrary, unreasonable or mala fide.
  • Whether the corporation may modify eligibility criteria of a NIT without prior Board of Directors approval.
  • The relevance of the statutory distinction between minor and major minerals to the experience requirement.
  • Whether the appellants have standing to challenge the amendments.

Legislation cited

Subjects

Notice Inviting Tendereligibility criteriamala fidearbitrarinessminor mineralsmajor mineralspublic procurementmining lawcontract award

Judgment

                          [2008] 5 S.C.R. 598

                                                                      ')--.
A                    MIS. S.S. & COMPANY
                               v.
            ORISSA MINING CORPORATION LIMITED
                (Civil Appeal No. 2227 of 2008)

                         MARCH 28, 2008
B
               (H.K. SEMA AND AFTAB ALAM, JJ.)

         Contract - For raising, calibration and transport of. iron
  ores from Iron Ore Mines - Notice inviting tenders (NIT) ~
c Amendment in Certain clauses - Exclusion of experience· in
  raising of minor minerals by sub-clause (i) - By sub clause
  (vii) the overlapping margin of 6 months permissible tC? the
  agencies already engaged in the same work in the mine for
  applying for the tender, was done away with - Companies hit
  by the amendments challenging the amended clauses
D
  alleging malafide - High Court dismissing their writ petitions
  - On appeal, held : There was no malafide in introducing the
  amendments - Doing away with the six months margin, in the
                                                                      •
  facts of the case is not arbitrary or unreasonable -Amendment
  of experience clause also, is not arbitrary - It is only a
E clarification - Since in the facts of the case, the company
  concerned is not affected by the experience clause, cannot
  challenge the amendment - Mines and Minerals.
         Tender- Notice Inviting Tender- Interpretation of - Held
F : It should be read and understood for what it is, and not to be
  seen in highly pedantic and legalistic manner.
                                                                      ).. <

       Respondent-Corporation issued Notice Inviting
  Tender (NIT) No. 16 in November 2004 for grant of contract
  for raising, calibration and transport of iron ore at a
G particular time for a period of one year. The contract was
  further extended for second year. The Corporation,
  pursuant to request of FGM for extention for third year,
  granted the same by letter dated 21.2.2008 and the period
  was to subsist till 24.2.2008. While the contract awarded
                                                                      -<--
H                             598
                    MIS. S.S. & COMPANY v. ORISSA MINING              599
                            CORPORATION LIMITED

·~            to FGM was subsisting Corporation issued NIT No. 65 for        A
              grant of another similar contract. On cancellation of
              thereof, NIT No. 75 was issued which was also later
              withdrawn. Appellant-FGM did not participate in the tender
              process as it was barred in view of the fact it was already
              executing similar and identical work. Appellant-SSC had        B
              participated in the process in respect of both the· NITS,
    ..J..
              but its tenders were not accepted. The non-acceptance
              were challenged, but ultimately withdrawn as infructuous
              in view of cancellation of the Nils. Thereafter, Corporation
              issued NIT No. 85 dated 25.5.2007. The eligibility clauses     c
              therein for the tenderers were amended. In clause 8(i)
              raising of minor mineral was not to be acceptable as
              experience for the work. By amendment in clause 8 (vii)
              tenderer was required not to have any pre-existing work
              in that mine on the last date for submission of the tender
                                                                             D
              (11.6.2008) and the overlapping margin of six moths was
              done away with. Appellant-SSC was hit by sub clause (i)
              and appellant-FGM was hit by sub-clause (vii). They
              challenged the amendment to the sub-clauses alleging
              malafide. High Court dismissed the writ petitions. Hence
              the present appeals.                                           E

                   Dismissing the appeals, the Court
                    HELD: 1.1 Doing away with the six months. margin
              in clause 8 (vii) of Notice Inviting Tender 85 (NIT-85) was
              not arbitrary or unreasonable, nor it had any ma/a fide F
              intent. Appellant was hugely in default in respect of its
·~            previous contract and yet it was insisting on taking part
              in NIT No.85/2007. In the aforesaid circumstances the
              consequences of the appellant getting the contract under
              NIT 85/2007 would have been two-fold : one, that it would· G
              operate the same mine at the same time under two different
              contracts with widely different rates and the other, that it
'             would be charging much higher rates for extraction of
       ")--
              ores that it was obliged to extract at much lower rates
              under the previous contract. The Corporation can hardly H
    600      SUPREME COURT REPORTS                 [2008] 5 S.C.R.


A be faulted for protecting itself against entering into such        ~ ·
  a bargain with anyone. [Paras 24 and 25] [614-C, D, E]
          1.2 Sub-clause (vii) of clause 8 of the tender is aimed
    at preventing the same party from executing two different
    works in the same mine at the same time. The clause does               ....
B   not even refer to a formal contract and if someone should
    be working the mine, may be on the basis of a work order
    issued by the Corporation, that in itself might be sufficient,
    in certain circumstances to attract clause 8(vii), even in
    the absence of a formally drawn up contract. Seen thus,
C   the whole issue as to whether or not a formal contract for
    the third year of the tender period was drawn up in favour
    of the appellant would appear to be of no relevance. The
    fact of the matter is that the appellant on its own showing
    was working in the mine upto June 30, 2007. Further, in
D   view of the decision of the Corporation it had the right to
    be there upto February 24, 2008. Therefore, the High Court
    was not incorrect in observing that the appellant would
    have been barred from taking part in the tender process
    even ifthe six months margin was retained in the eligibility
E   clause. [Para 18] [610-E, F, G, H; 611-A]
       1.3 The question whether the appellant had the right
  to stay in the mine till February 24, 2008 or its work there
  came to end on June 30, 2007 has relevance only on the
  issue of ma/a fide. Otherwise, it is always open to the
F Corporation to issue a tender notice, at any time,
  according to its needs, and to introduce an eligibility
  clause in the tender notice or to delete from it any pre-
  existing one as it might best serve its purpose. Hence,
  the controversy with regard to the outer limit of the
G appellant's presence in the mine on the basis of the earlier
  contract under NIT 16 has no relevance sans the allegation
  of ma/a fide. [Para 19] [611-A, B, C]
       1.4. The circumstances viz. the eligibility clause was
H so tailored as to render the appellant disqualified by 19
                  M/S. S.S. & COMPANY v. ORISSA MINING              601
                           CORPORATION LIMITED

-~          days and that the change in clause 8(vii) was made for A
            the first time, are inadequate to bring home the grave
            charge of ma/a fide and the High Court was quite right in
            holding that the appellant completely failed to establish
            its case in that regard. It is axiomatic that the Corporation
            is the best judge of its interests and needs and it is always B
            open to it to suitably modify or change the eligibility criteria
    -4-
            so as to best serve its purposes. Whenever a change is
            introduced in the eligibility criteria either by introducing
            some new conditions or restricting or altogether doing
            away with certain previous concessions it might hurt the
            interests of someone or the other but for that reason the
                                                                          c
            change(s) made in the eligibility criteria cannot be labelled
            as ma/a fide. [Para 21] [611-E, G; 612-A, B]
                 2.1 It is not correct to say that any distinction between
            minor and major minerals was illusory and the amendment D
            in clause (i) to NIT-85, based on the distinction between
     ....   the two, was arbitrary and did not serve any purpose .
            There is no error much less any unreasonableness in the
            view taken by the Technical Committee and in rejecting
            the appellant's tender on that basis. It does not require
                                                                           E
            much imagination to hold that the work of lifting of sand
            from a riverbed or a sand quarry is not similar in nature to
            the work of raising, calibration and transport of iron ore.
            [Paras 38 and 42] [621-C, D; 624-A, B]
                 2.2 It would be truism to say that the Corporation F
            knows best the exact nature of its work and it is tl:te best
.   ;. ~    judge to say what is and what is not comparable to it. The
            expression "excluding minor minerals" used in the
            eligibility must, therefore, be viewed as commonly
            understood in the mining/industrial and commercial
            world. What the clause intends to convey is that the G
            extraction of iron ore requires certain degree of technical
            expertise and competence and in order to have the
"> )-       required degree of competence the bidder must have
            some past experience of similar kind of work, clarifying
                                                                         H
    602       SUPREME COURT REPORTS                [2008] 5 S.C.R.


A further that working of minor minerals would not be                ~·

  accepted as qualifying experience/sufficient expertise for
  the purpose of the NIT. The distinction between minor and
  major minerals is well-known to the mining/industrial and                   ..
  commercial world and anyone engaged in the business
B would  know what the eligibility clause in the NIT demands
  without referring to the statute and case law and any
  abstruse arguments based thereon. [Para 39] [621-H; 622-
  A, B, C, DJ
       2.3 In the context of the case, an elaborate analysis
c of the provisions of the Mines and Minerals (Regulation
  and Development Act, 1957) and Mineral Concession
  Rules to bring out the distinction between minor and major
  minerals is quite misconceived. It would be a mistake to
  see the NIT through the prism of the Act and the Rules.
D The NIT should not be viewed in the highly pedantic and
  legalistic manner, but it is a notice issued by the
  Corporation which is engaged in the business of mining.
  [Para 39] [621-E, F, G]                                            "'
       2.4 A grievance against the amendment, either based
E on  the  plea of mala fide or dn the substance of the
  amendment can only be raised by someone whose
  position gets adversely affected by the amendment.
  Appellant-SSC did not satisfy the eligibility criteria with
  regard to past experience even in terms of the unamended
  clause 8(i). Had the appellant been qualified in terms of
F
  the unamended clause and faced exclusion only as a
  result of the amendment in the criterion it might have been        A. • '
  open to it to assail the introduction of the amendment.
  [Paras 40 and 44] [622-D, 624-D, E]

G         D. K. Trivedi and Sons and Ors. vs. State of Gujarat and
    Ors. 1996 Suppl. SCC 20 - referred to.
       2.5 The Board of Directors is the apex policy making
                                                                          {"'
  body. It may lay down broad guidelines but it is impossible
                                                                     ~
  to conceive that all the NITs (over a hundred in number)
H issued by the Corporation for different purposes evety
           M/S. S.S. & COMPANY v. ORISSA MINING                   603
           CORPORATION LIMITED [AFTAB ALAM, J.]

     year should come before it for consideration and approval A
     of their respective clauses or any amendment proposed
     in any clause in any of the NITs. The normal work of any
     organization or government department would be
     seriously hampered if every tendering party would claim
     the right to raise objection that one or the other clause in B
     a NIT or any amendment introduced in any of its clauses
     did .not have the prior sanction of the highest policy
     making body of the organization. In this case
     particularly there is no occasion to go into that question
     as there is neither any m~terial to suggest, even c
     remotely, that the Managing Director harboured any
     malice against the appellant nor is the Managing director
     made a party to this case in his personal capacity.
     [Para 31] [617-8, C, D, E]
         CIVIL APPELLATE JURISDICTION : Civil Appeal No.                 D
     2227 of 2008.
          From the final Judgment and Order dated 12.07.2007 of
     the High Court of Orissa.at Cuttack in Writ Petition (C) No. 7001
     of2007.                     ·
                                                                         E
                                  WITH
          Civil Appeal No. 2228 of 2008.
           R.F. Nariman, P.P. Rao and Dr. Rajiv Dhawan, Dhruv Mehta,
     Yashraj Singh Deora, Harshvardhan Jha (for M/s. K.L. Mehta & F
     Co.), Saket Sikri, Madhu Sikri, Raj Kumar Mehta, Suman Kukrety,
     Purushottam S.T., Anshuman Ashok, Abhishek Gupta, Sahar
     Bakht, Feb in A.K. and Jana Kalyan Das for the appearing parties.
          The Judgment of the Court was delivered by
                                                                         G
          AFTAB ALAM, J. Leave granted in both the matters.
           2. These two appeals, taken together for the sake of
)-   convenience, question the validity of two different clauses in the
     eligibility criteria in a Notice Inviting Tenders (NIT), issued by
     the respondent-Orissa Mining Corporation Limited (hereinafter H
    604         SUPREME COURT REPORTS                     [2008] 5 S.C.R.

                                                                              ,,.._    .
A referred to as 'the Corporation'). The appellants in the two
  appeals make a grievance that the two clauses were designed
  to exclude them from consideration. They first went to the High
  Court of Orissa challenging the validity of the clauses and the
  rejection of their respective tenders on that basis. M/s. S.S. &
B Company     challenged the validity of Clause 8(i) of the NIT in
  W.P.(C) No.7001/2007, (giving rise to SLP (C) No.12003/2007).
  M/s.Faridabad Gurgaon Minerals challenged Clause 8(\1\i) of
  the NIT in W.P. (C) No.7002/2007, (giving rise to SLP (C)
  No.12008/2007). A Division Bench of the High Court by
c separate judgments, dated July 12, 2007 dismissed both the
  writ petitions. The judgments of the High Court are brought in
  appeal before this Court.

       3. The appellants in each of the two appeals are
  proprietorship firms owned and controlled by a father and son
D duo and the controversy in the two cases relates to the grant of
  contract for raising, calibration and transport of iron ores at
  Daitari Iron Ore Mines of the respondent-Corporation.

        4. The Corporation issued NIT No.16 on November 11,
  2004 for grant of contract for raising, calibration and transport
E of iron ore at Daitari mines for a three year period. Here, it may
  be noted that in NIT 16 sub-clauses (i) and (vi) of Clause 8 relating
  to eligibility criteria were as follows:-

          "8. The eligibility criteria of the tenderers shall be as
F         follows:-
          Only such tenderers who fulfil the following eligibility criteria   ,.....
          shall participate in the tender:-
          (i)   The agency must have successfully executed similar
                work (as mentioned in NIT/raising work(s) of ore/
G
                minerals) for a minimum amount of 30% in case of
                a single work or 50% in case of two works of the
                value of work shown in column No.5 of NIT in any one          ~
                financial year during the last three years including
                2003-04.
H
              M/S. S.S. & COMPANY v. ORISSA MINING                    605
              CORPORATION LIMITED [AFTAB ALAM, J.]

"'1'         (vi)   Any agency who is already executing similar and A
                    identical work in any mine will not be allowed to take
                    up the second work in the same mine and such
                    agency will not be allowed to participate in the tender.
                    However, if the work of the said agency is due to
                    end within six months of the date of issue of this B
                    NIT and there is no possibility that the work tendered
                    for and the existing work in hand will operate
                    concurrently, this restriction will not be applicable
                    to the concerned agency."
             (The above quoted clauses in their amended form are              c
             now the subject matter of controversy).

               5. In response to NIT 16, dated November 11, 2004, M/
        s.Faridabad Gurgaon Minerals (FGM) was the successful bidder
        and by letter, dated January 29, 2005 issued by the Corporation
                                                                             D
        it was awarded the work 'initially for a period of one year for a
        quantity of 12.00 lakh MT.' on rates as indicated in that letter. In
        that letter, it was further stipulated that the awardee might be
        considered for extension for second and third year working
        subject to satisfactory performance in the preceding year(s)
        based on the terms and conditions mentioned in the tender E
        schedule. The first year period of the contract commenced from
        February 25, 2005 and came to end on February 24, 2006. The
        parties are also in agreement that the contract was extended
        for the second year, i.e., upto February 24, 2007 but as regards
        the third year, the two sides are in serious dispute. The F
f Al    Corporation takes the stand that the appellant was given work
        for the third year as well and the work period would come to end
        on February 24, 2008. The appellant FGM, however, maintains
        that its work in Daitari Mines under NIT 16 came to end on June
        30, 2007.                                                            G

             6. Even while the contract awarded to FGM under NIT 16
;       was subsisting, the Corporation issued NIT No.65 on July 7,
    ~   2006 for grant of another similar contract for raising, calibration
        and transport of iron ores from Daitari Iron Ore Mines. FGM
                                                                              H
    606         SUPREME COURT REPORTS                     (2008] 5 S.C.R.


A was not eligible to take part :n the tender process in view of the          ~·
  bar of clause 8(vi) but M/s.S.S. & Company (SSC), the other
  appellant before the court gave its tender for the work under NIT
  65. For some reasons, however, its tender was not accepted
  and it took the matter before the Orissa High Court. During the
B pendency    of the writ petition, the Corporation cancelled NIT 65
  and issued NIT 75, dated November 18, 2006 for the same
  work. This rendered the writ petition filed by SSC infructuous
  and it was withdrawn. NIT 75 had a similar fate. The tender made
  by SSC was not accepted. The dispute was taken to the Orissa
c High Court but the Corporation cancelled NIT 75 thus rendering
  the writ petition infructuous. Here, it may be noted that both NITs
  65 & 75 had clauses 8(i) and 8 (vi) exactly in the same terms as
  in the earlier NIT 16, dated November 11, 2004 (which have
  been reproduced above).
D        7. After cancellation of NIT 75, the Corporation issued NIT
    85, dated May 25, 2007 which is the subject-matter of the
    controversy in the two cases. NIT 85 had the two clauses 8 (i)
    and 8 (vii) in slightly amended forms as follows:-
          "8.-m.e eligibility criteria of the tenderers shall be as
E         follows:
          Only such tenderers who fulfil the following eligibility criteria
          shall participate in the tender:-
          (i)   The agency must have successfully executed similar
F               work (as mentioned in NIT/raising work(s) of ore/
                minerals excluding Minor Minera0 for a minimum                .... '
                amount of 30% in case of a single work or 50% in
                case of two works of the value of work shown in
                column No.5 of SI. No.2 of NIT in any one financial
G               year during the last three years including 2006-07.
          (vii) The agency who is already executing the work in a
                 mine of OMC Ltd. will not be allowed to take up the
                 second work in the same mine and such Agency will            ....-
                 not be allowed to participate in the tender."
H
                 M/S. S.S. & COMPANY v. ORISSA MINING                    607
                 CORPORATION LIMITED [AFTAB ALAM, J.]

' --f'°          8. It is thus to be seen that in sub-clause (i) the words      A
           'excluding Minor Mineral' was added to the portion in
           parenthesis, making it explicitly clear that raising of Minor
           Mineral would not be acceptable as experience in 'similar work'.
           Likewise, in sub-clause (vii), the overlapping margin of six
           months was done away with and as a result the tenderer was           B
           required not to have any pre-existing work in Daitari Mines on
    +
           the last date for submission of tender (11.06.2007).

                9. SSC was hit by sub-clause (i) and FGM that was working
           in Daitari Mines on the basis of the previous contract, by sub-
           clause (vii). Both the appellants fancied that the two sub-clauses   c
           were specially tailored with the sole intent and purpose to
           exclude them from c.c;msideration. They, accordingly, went to the
           High Court making loud protests and alleging mala fide.

                 10. FGM filed Writ Petition (C) No.7002 of 2007, before
                                                                                D
           the High Court stating that the overlapping margin of six months
     -t    for a pre-existing contract to work in the same mine was dropped
           from NIT 85 of 2007 with the mala fide intent to exclude it from
           consideration. It was submitted that on May 25, 2007, the date
           on which the notice was issued and on June 11, 2007, the last
           date for submission of tenders in response to the notice, the        E
           appellant alone was working in Daitari Mines and the sub-clause
           was only aimed to exclude it from participating in the tender
           process. It was also pointed out that previously three successive
           notices allowed the margin of six months and there was no
           reason to do away with the margin period. It was further             F
  '' A.    contended that the amendment in the sub-clause, disallowing
           anyone with a pre-existing contract in the same mine to
           participate in the tender process was arbitrary as it would serve
           no purposes, much less any reasonable one.
                                                                                G
                 11. The High Court by a well reasoned judgment and order
           negatived all contentions raised by the appellant and dismissed
           the writ petition. It held and found that the appellant completely
     )'-   failed to establish any mala fides and in paragraph 20 of the
           judgment observed as follows :
                                                                                H
    608       SUPREME COURT REPORTS                   [2008] 5 S.C.R.


                                                                         ~.
A         "Insofar as question of malice or bias is concerned, no
          case is made out in the writ petition. Though some vague
          allegations are scattered in the writ petition in different
          paragraphs, there is no serious pleading of malice or mala
          fide or bias against the authorities of the Corporation."
B         On merits, the High Court held that there was a perfectly
          good reason for doing away with the six months' margin
          for a pre-existing contract in the same mine.

        12. The High Court also took note of the case of the
c respondent-Corporation that by communication, dated February
  21, 2007, the period of the appellant's contract was extended
  upto February 24, 2008. According to the Corporation, the letter
  made it clear that the contract was extended for the third year
  too and the appellant was awarded the work of raising 20.00
  lakh metric tons of Ore from February 25, 2007 to February 24,
D
  2008 on the terms and conditions as provided in the agreement.
  Since the appellant would be working the mines till February
  24, 2008, it could not take part in the tender process even if the
  six months margin was still there. The High Court accepted the
  case of the respondent-Corporation in this regard and cited it
E as one more reason for taking the view that there was no
  substance in the appellant's grievances.

          13. Mr.Mehta, learned counsel for the appellant FGM,
    submitted that the letter dated February 21, 2007 (referred to in
F   the High Court judgment) could not be taken as extension of the
    contract for the third year under NIT 16.
                                                                        ;...
        14. The letter, dated February 21, 2007 was written in
  response to the appellant's request for renewal/extension ofihe
  contract for the third year and it conveyed the Corporation's
G decision to award the work to the appellant for the third year
  extension with effect from February 25, 2007 to February 24,
  2008 under the same terms and conditions of the agreement.
  This letter was followed by another letter, dated May 25, 2007        -<
  (which according to Mr. Mehta was overlooked by the High Court).
H By this letter the Corporation awarded the work to the apppellant
                 M/S. S.S. & COMPANY v. ORISSA MINING                     609
                 CORPORATION LIMITED [AFTAB ALAM, J.]
.   """(
           'though partly, to be precise from February 25, 2007 to June          A
           30, 2007' indicating the target (of extraction) to be achieved
           and the work value as per the rate under the tender schedule.
           The letter was described as the 'letter of intent' and it asked the
           appellant to make certain deposits by June 30, 2007 for drawing
           up the agreement for the third year period of the contract. In        B
     +     paragraph 7 of the letter it was clearly stipulated that all other
           terms and conditions indicated in the tender schedule would
           remain unchanged and would apply mutatis mutandis.

                 15. Mr.Mehta submitted that this letter was simply a work
           order and neither this letter nor the earlier one of February 21, c
           2007 could mean the extension of the contract under NIT 16 for
           the third year. Learned counsel referred to Annexures P-8 and
           P-9 which are copies of agreement No.4/2005-2006 and
           agreement No.4/2006-2007 for the periods February 25, 2005
           to February 24, 2006 and February 25, 2006 to February 24, D
           2007 respectively. Learned counsel submitted that unlike the
      +
           two previous years no formal agreement was drawn up for the
           third year of the contract period from February 25, 2007 to
           February 24, 2008 and, therefore, the High Court was clearly in
           error in accepting the claim of the Corporation that the E
            appellant's contract under NIT 16 was extended for the third
           year period and it would be subsisting till February 24, 2008.

                  16. In our view, the submission is quite mis-conceived. The
           materials on record plainly indicate that the appellant was trying
           to find ways to get out of the contract for the third year period F
t~         because the rates under the tender schedule were no longer
           profitable to it. We were shown the Corporation's letter, dated
           June 29, 2007 by which it was pointed out to the appellant that
           according to the terms of the tender the contract was for a period
           of three years and it would expire on February 24, 2008. It was G
           further stated in the letter that the appellant had badly defaulted
           on the production target for the first quarter of 2007c2008 and
     )-    in terms of clause 1.8 of the tender schedule it was asked to
           clarify its final stand and to indicate its production plan for the
           remaining tender period i.e. till February 24, 2008. To the H
    610        SUPREME COURT REPORTS                     [2008) 5 S.C.R.


A Corporation's letter, the appellant gave a highly evasive reply
  by its letter of July 4, 2007. Alluding to Writ Petition (C) No.7002/
  2007 it stated that the matter was sub-judice before the High
  Court and on that plea it declined to enter into any
  correspondence on the issue raised by the Corporation. It is to
B be noted here that the Writ Petition arose from a controversy
  relating to the eligibility clause in NIT 85/2007 and it had nothing
  to do with the production targets under NIT 16/2004.

         17. Be that as it may, suffice it to note that on the appellant's
    request for renewal/extension of the contract the Corporation
C had taken the decision to award the work in its favour for tha
  third year extension with effect from February 25, 2007 to
  February 24, 2008 (vide letter dated February 21, 2007). In
  pursuance of the decision the Corporation further issued the
  letter dated May 25, 2007 asking the appellant to make the
D required deposits by June 30, 2007 for drawing up the
  agreement for the third year under the contract. It is thus manifest
  that, according to the Corporation, the appellant-company had
  the right to work the mine till February 24, 2008 and on its own
  showing it was actually engaged in working the mine till June
E 30, 2007.
        18. Here, it is to be noted that sub-clause (vii) of clause 8
  is aimed at preventing the same party from executing two
  different works in the same mine at the same time. The clause
  does not even refer to a formal contract and if someone should
F be working the mine, may be on the basis of a work order issued
  by the Corporation, that in itself might be sufficient, in certain
  circumstances to attract clause 8(vii), even in the absence of a
  formally drawn up contract. Seen thus, the whole issue as to
  whether or not a formal contract for the third year of the tender
G period was drawn up in favour of the appellant would appear to
  be of no relevance. The fact of the matter is that the appellant
  on its own showing was working the mine upto June 30, 2007.
  Further, in view of the decision of the Corporation it had the
  right to be there upto February 24, 2008. Therefore, the High
H Court was not incorrect in observing that the appellant would
                M/S. S.S. & COMPANY v. ORISSA MINING                      611
                CORPORATION LIMITED [AFTAB ALAM, J.]

. \'     have been barred from taking part in the tender process even if A
         the six months margin was retained in the eligibility clause.
                 19. Furthermore, the question whether the' appellant had
           the right to stay in the mine till February 24, 2008 or its work
           there came to end on June 30, 2007 has relevance only on the
         . issue of mala fide. Otherwise, it is always open to the Corporation   B
    +      to issue a tender notice, at any time, according to its needs,
           and to introduce an eligibility clause in the tender notice or to
           delete from it any pre-existing one as it might best serve its
           purpose. Hence, the controversy with regard to the outer limit of
           the appellant's presence in the mine on the basis of the earlier      c
           contract under NIT 16 has no relevance sans the allegation of
           mala fide.

                 20. Now, we will proceed to examine the case of the
         appellant in this regard. On behalf of the appellant, it is alleged
         that the overlapping margin of six months in clause 8(vii) was D
         dropped with the sole intent to keep it out of the tender process.
    +    In support of the allegation three arguments are advanced on
         its behalf. One is that on May 25, 2007, (when NIT 85 was issued)
         and on June 11, 2007 (the last date for submission of tender)
         the appellant alone was working the mine. The appellant's work E
         in the mine, according to its assertion would have come to end
         on June 30, 2007. The eligibility clause was, therefore, so
         tailored as to render it disqualified by 19 days. The second
         argument is that the change in clause 8(vii) was made for the
         first time. In the earlier tender notices the same eligibility clause F
         allowed a margin period of six months but it was done away
f ,,l,   with in order to exclude the appellant who had only 19 days
         presence left in the mine. The third argument advanced on behalf
         of the appellant is that the deletion of the six months margin is
         otherwise completely arbitrary and it serves no reasonable purpose.
                                                                               G
                 21. The first two circumstances are woefully inadequate
         to bring home the grave charge of mala fide and the High Court
         was quite right in holding that the appellant completely failed to
    r    establish its case in that regard. It is axiomatic that the
         Corporation is the best judge of its interests and needs and it is H
    612       SUPREME COURT REPORTS                    [2008] 5 S.C.R.


A always open to it to suitably modify or change the eligibility          ~·
  criteria so as to best serve its purposes. Whenever a change is
  introduced in the eligibility criteria either by introducing some
  new conditions or restricting or altogether doing away with
  certain previous concessions it might hurt the interests of
B someone or the other but for that reason the change(s) made in
  the eligibility criteria cannot be labelled as mala fide. The first
  two arguments advanced on behalf of the appellant thus                  +
  completely fail to show any mala fide and we now proceed to
  examine the third argument advanced on its behalf.
c        22. As noted above, on behalf of the appellant it is
    contended that dropping away of the six months margin does
    not serve any purpose whatsoever but it only ensured the
    appellant's exclusion.
        23. On the other hand, the Corporation gives a very
D reasonable and valid explanation for the change made in the
  eligibility clause. In paragraph 4 of counter-affidavit filed by the
  Corporation it is stated as follows :
          'That the above condition was included in the Tender Notice
E         because if an agency which is working at a particular rate
          in a particular mine is allowed to operate at a different and
          higher rate under a different Contract but in the same
          mine there is every possibility of the said agency claiming
          payment in respect of the work done under the earlier
          contract at rates stipulated under the new Contract. In
F         other words, the same agency will operate in the same
          mine with two different rates for similar work i.e. Raising,    A'
          Calibration and Transportation of Iron Ore and fines and
          there is every possibility of mixing up the Ores which
          would be raised and transporled at two different rates."
G
         We find that the explanation given by the Corporation is
    perfectly reasonable and if any illustration is needed it is to be
    found in the facts of the case in hand itself.
                                                                          -'(
                                                                                -
       The appellant was given the three years' contract under
H NIT 16 at the following rates:
                 M/S. S.S. & COMPANY v. ORISSA MINING                      613
                 CORPORATION LIMITED [AFTAB ALAM, J.]

                 "ACCEPTED RATE                                                  A
                                                      Rate per MT in Rs.
           s.     Description of work                  1st        2nd     3rd

           No.                                       Year        Year    Year

            1.    Drilling, blasting, excavation,    67.01       70.00   75.00   B
                  transport of ROM to Dry                    (

                  Screening Plant/Crushing &
                  Screening Plant, crushing and
                  screening of ROM to 10-30/
                  10-40mm CLO and 10mm fines.
                                                                                 c
           2.     Transport of 10-30/10-40 mm
                  CLO and fines from Dry
                  Screening Plant/Crushing and
                  Screening Plant to
                  a) Baliparbat Stockyard            30.80       31.80   33.46   D
                  b) Daitari Railway siding          35.20       36.20   39.18

                 There was no escalation clause in the contract and from
          the record it is manifest that the rates on which the appellant's
          tender was accepted were no longer profitable for it, at least in      E
          third year, and the appellant was not at all interested in carrying
          on the work for the third year on the rates given in the tender
          schedule. In paragraph 2 of the Corporation's counter-affidavit
          it is stated that the appellant had completely failed to meet the
          production target and it was badly in default. The relevant extract    F
> .)...   from paragraph 2 of the affidavit is as follows :
                 "However, the respondent (sic) could not achieve the target
                 under said contract as indicated hereunder :
                 Period          Target Quantity      Achieved Quantity          G
                                          (Quantity in MT)
                 1st Year          12.00 lakh              03.75 lakh
                 2nd Year          20.00 lakh              13.05 lakh.
                 3rd Year          09.22 lakh              01.16 lakh
                                         (Upto 19th July, 07)                    H
    614       SUPREME COURT REPORTS                     [2008] 5 S.C.R.


A       Since 19th July, 2007, the Petitioner has virtually stopped        y
  the work on the ground that the rates are low even though there
  is no escalation clause in the Contract and the Petitioner is
  bound to complete the contract at the contracted rates. The non-
  achievement of the target by the Petitioner has resulted in a
B loss in terms of sales revenue to the tune of Rs.115.90 crore."
         24. In its rejoinder affidavit the appellant has sought to give
  explanation for not being able to meet the targets during the
  first and the second year of the contract period. It has not given
  any explanation for the third year and has gone on to compare
c its performance with another contender M/s.Arun Udyog. Any
  comparison with M/s.Arun Udyog is besides the issue. What is
  relevant here is that the appellant was hugely in default and yet
  it was insisting on taking part in NIT No.85/2007. In the aforesaid
  circumstances the consequences of the appellant getting the
D contract under NIT 85/2007 would have been two-fold : one,
  that it would operate the same mine at the same time under two
  different contracts with widely different rates and the other, that
  it would be charging much higher rates for extraction of ores
  that it was obliged to extract at much lower rates under the
E previous contract. The Corporation can hardly be faulted for
  protecting itself against entering into such a bargain with anyone.
          25. Thus, on a careful consideration, we are fully satisfied
    that doing away with the six months margin in clause 8(vii) was
    not arbitrary or unreasonable, nor it had any mala fide intent.
F
          26. For the reasons discussed above, we find no merit in
    the appellant's (FGM's) case.The High Court has taken a                A.   '

    perfectly correct view of the matter and it warrants no
    interference by this Court.
G         M/s. S.S.& Company (SSC)
          27. Mr. R.F. Nariman, learned senior counsel appearing
    for the SSC also began his submissions by alleging, that the
    amendment in clause 8(i) of NIT 85 by insertion of the words           ~
    "excluding minor minerals" was mala fide: its sole purpose was
H
                     M/S. S.S. & COMPANY v. ORISSA MINING                      615
                     CORPORATION LIMITED.[AFTABALAM, J.]

.. \          to exclude SSC and to unduly favour another bidder, namely, M/ A
              s. Arun Udyog Ltd. In support of the plea of mala fide Mr. Nariman
              advanced three arguments: Learned counsel stated that though
              being the lowest bidder in response to the earlier two NITs 65
              and 75, SSC was not awarded the work because the concerned
              officials in the Corporation wanted to give it toArun Udyog whose B
              bids were much higher than the appellant. When the appellant
              took the matter arising from NITs 65 and 75 to the High Court,
              on each occasion the bid process was aborted in the middle
              and finally NIT 85 was issued with the offending amendment.
              He next submitted that the amendment made in the clause was c
              a one time exclusionary measure: it was not there in the earlier
              NITs and it is unlikely to find place in the future NITs. He also
              submitted that the impugned amendment in clause 8(i) of NIT
              85 was made at the instance of the Managing Director and
              without the prior approval of the Corporation's Board of
                                                                                 D
              Directors.
' +                 28. The Corporation strongly denied that the object of the
              amendment in clause 8(i) of the NIT was to disqualify the
              appellant and thereby help Arun Udyog in securing the contract.
              In the counter affidavit filed in the High Court on its behalf it was   E
              pointed out that the appellant's technical bid in response to
              NIT75 was rejected because it had no past experience of similar
              work as required under the NIT. Thereafter the price bid of the
              technically qualified tenderer, i.e., M/s. Arun Udyog Ltd: was
              opened on 18.11.2006. But the Corporation decided to cancel             F
              NIT75 and to issue a fresh NIT so that it may have more
~      .}..   competitive bids for consideration. Mis. Arun Udyog Ltd. was
              not given the work under NIT75 even though the appellant was
              out of reckoning.
                   29. However, the High Court, even without referring to the         G
              averments made in the Corporation's affidavit, declined to
              entertain the appellant's allegation that M/s. Arun Udyog Ltd.
              was being shown undue favour and the appellant was sought to
    "r        be ousted to favour that company observing as follows:
                                                                                      H
    616        SUPREME COURT REPORTS                       [2008] 5 S.C.R.


A         "In paragraph 17 of the writ petition there are some                  ~     ~


          allegations that the opposite party wants to favour and
          award the tender to one M/s.Arun Udyog Limited. Since
          M/s.Arun Udyog Limited is not imp/eaded in this writ
          petition the allegations against it cannot be taken into
B         consideration."
         30. The second and the third allegations in support of the
    plea of mala fide were also rebutted by the Corporation by filing
    before the High Court an affidavit sworn by the Addi. General
    Manager (Mining). The High Court took note of the averments
c   made in that affidavit in paragraph 8 of its judgment as follows:

          "Another affidavit dated 2.7.2007 was also filed by the
          Additional General Manager (Mining) of the Corporation.
          It has been stated therein that the Corporation in a year
          floats about 120 nos. of tenders to undertake mining and
D
          related activities in different minerals with widely varying
          conditions and the Board of Directors lays down the
                                                                                -+
                                                                                        '
          general guidelines for preparing the special terms and
          conditions for different types of words. In this connection,
          the broad guidelines of special terms and conditions were
E         approved by the Board of Directors on 11.6.2007. It has
          been stated in the said affidavit that the same is general
          guidelines and incorporation of any oth~r condition
          appropriate for different work. can be made. It has also
          been stated in the said affidavit that in future in the eligibility
F         criteria the word 'excluding minor mineral' will be included
          while floating NIT if the nature of work demands for the
          same. It was also stated in the affidavit filed by the                ... \
          Managing Director that Tender Notice No.85 dated
          25.5.2007 was issued after its clauses were recommended
G         by the Managing Director of the Corporation vide notes
          dated 15.5.2007 were duly approved by the Chairman of
          OMC."

         The High Court thus brushed aside the plea of mala fide                ..y
    raised by the appellant.
H
             M/S. S.S. & COMPANY v. ORISSA MINING                   617
             CORPORATION LIMITED [AFTAB ALAM, J.]
-y           31. We are in complete agreement with the view taken by A
       the High Court. As a matter of fact, for rejecting the allegation .
       that the impugned amendment was introduced in clause 8(i) of
       the NIT at the instance of the Managing Director, without
       obtaining prior approval of the Board of Directors we need not
       even go to the rebuttal affidavit filed by the Addi. General B
 -i-   Manager. The Board of Directors is the apex policy making body.
       It may lay down broad guidelines but it is impossible to conceive
       that all the NITs (over a hundred in number) issued by the
       Corporation for different purposes every year should come
       before it for consideration and approval of their respective       c
       clauses or any amendment propose.d in any clause in any of the
       NITs. [We fail to see any good reason why the matter should not
       be finalized by the Managing Director or, depending upon the
       nature of the contract, even at some lower level]. The normal
       work of any organization or government department would be
                                                                           D
       seriously han:ipered if every tendering party would claim the right
 ~>-
       to raise objection that one or the other clause in a NIT or any
       amendment introduced in any of its clauses did not have the
       prior sanction of the highest policy making body of the
       organization. In this case particularly there is no occasion to go
       into that question as there is neither any material to suggest, E
       even remotely, that the Managing Director harboured any malice
       against the appellant nor is the Managing director made a party
       to this case in his personal capacity.
             32. This brings us to consider Mr.Nariman's submissions F
       on the substance of the amendment in the clause in question.
 J..
       Here we may observe, in fairness to the counsel, that though
       raising the allegation of mala fide with some vehemence in the
       beginning, as he proceeded with the submissions, he completely
       shifted the focus and argued mainly on the merits of the change
                                                                       G
       introduced in clause 8 (i) of the NIT. He assailed it as wholly
       unreasonable, arbitrary and as serving no purpose. Mr. Nariman
       contended that the distinction between minor and major minerals
       was illusory and hence, the exclusion of any past experience of
       working any minor minerals was quite unreasonable and
                                                                       H
    618       SUPREME COURT REPORTS                   [2008] 5 S.C.R.


A arbitrary and it had no relation to the object that was claimed to     ~-
  be achieved. Learned counsel elaborately referred to various
  provisions of the Mines and Minerals (Regulation and
  Development) Act, 1957 and the Mineral Concession Rules,
  1960. He referred to the long title, the preamble and section 2
B of  the Act and submitted that from the latter provisions of the Act
  it would be evidentthatthe control of the Union over the regulation    -J,.

  of mines and minerals was cent per cent. He then referred to
  section 3 clauses (a) and (e), sections 4 to 13, 14, 15 and sub-
  section 3 of Section 15 of the Act. He also referred to rule 17 of
c the Rules that provides that sand was not to be treated as minor
  mineral when used for certain specified purposes. In light of the
  provisions of the Act and the Rules, learned counsel submitted
  that the distinction between major and minor minerals did not
  depend upon hardness or softness or the technology of
  excavation. Illustrating the point learned counsel submitted that
D
  quartz and granite though, minor minerals being so notified
  under Section 3(e) of the Act, are very hard substances and on         ....
  the other hand gypsum, talc and china clay, though major
  minerals are relatively much softer substances. Further referring
  to rule 17, learned counsel submitted that whether a substance
E was major mineral or minor mineral depended on its end user.
  In case, sand was used for any of the purposes specified in rule
  17 of the Mineral Concessions Rules it would qualify as major
  mineral and in that event any past experience in excavating/
  lifting sand would not be hit by the impugned exclusionary
F amendment in clause 8(i) of the NIT.

        Mr. Nariman also referred to the decision of this Court in        A

  D.K. Trivedi & Sons & Ors. Vs. State of Gujarat & Ors. [1996
  Suppl. SCC 20 paras 29 and 30]. He submitted that in view of
  the statutory scheme of the Act as explained in the decision in
G
  D.K. Trivedi the distinction sought to be made between major
  and minor minerals and the exclusion of any past experience in
  the excavation of minor mineral was wholly untenable and
  unfounded.
H         Mr. Nariman also cited before us some decisions dealing
                 '
                     M/S. S.S. & COMPANY v. ORISSA MINING                    619
                     CORPORATION LIMITED [AFTAB ALAM, J.]

-.. 1         with the scope of judicial review in matters of grant of contract      A
              by public bodies but we see no need to mention those decisions
              here.
                     33. Mr. P.P.Rao and Dr. R.Dhawan, senior advocates
              appearing for the Corporation in the two cases strongly refuted
              the submissions made on behalf of the appellant. Mr. Rao               B
              submitted that in light of the past experience the Corporation
              felt the need to introduce the amendment as a measure of quality
              control. He referred to the Corporation's affidavit filed before
              the High Court where it is stated:
                                                                                     c
                     "Iron ore being too hard, drilling and blasting and strict
                     quality control measures will be essential which cannot
                     be compared with mining of "minor minerals". To bring
                     required expertise for undertaking efficient iron ore mining,
                     the above change in eligibility criteria has been made."
                                                                                     D
                    34. Mr. Rao further submitted that the amendment was fully
        +     in accord with the guidelines laid down by the Board of Directors
              and it was wrong to say that it was introduced at the instance of
              the Managing Director. In support of the submission he referred
              to several documents but it is not necessary to advert to them in      E
              view of the discussions made above.

                    35. Mr. Rao also submitted that the appellant's turn over
              for the past years was far below the requirement of the NIT and
              on that score also the appellant was not eligible to take part in
              the bid.                                                               F

        >..         36. Dr. Dhawan submitted that as in the case of FGM, once
              the plea of mala fide is held to be unfounded, practically nothing
              remains of the appellant's challenge to the substance of the
              amendment. Learned counsel controverted the submission
                                                                                     G
              made on behalf of the appellant and contended that the
              distinction between minor and major minerals is a statutory
              distinction of far reaching significance. He submitted that both
              the Statute and case law recognized the differences between
              minor and major minerals. He referred to paragraph 22 of the
                                                                                     H
    620        SUPREME COURT REPORTS                      [2008] 5 S.C.R.


A decision in D.K. Trivedi where it was observed as follows:
          " ........ It is pertinent to note that the term "minor minerals"
                                                                              '"'""'   -
          came to be defined in a statute for the first time by clause
          (e) of Section 3 of the 1957 Act. In addition to the minor
          minerals mentioned in the said clause (e), boulder; shingle;
B         chalcedony pebbles used for ball mill purposes only;
          limeshell, kankar and limestone used in kilns for
          manufacture of lime used as building material; murrum;
          brick-earth; Fuller's earth; bentonite; road metal; reh-matti;
          slate and shale when used as, building material; marble;
c         stone used for making household utensils; quartzite and
          sandstone when used for purposes of building or for
          making road metal and household utensils; and saltpetre,
          have been declared to be minor minerals by various
          notifications issued by the Central Government. .... "
D
         He also referred to paragraph 33 of the decision where it
    was observed as follows:
          " ....... .As seen from the definition of minor minerals
          given in clause (e) of Section 3, they are minerals which
E         are mostly used in local areas and for local purposes
          while minerals other than minor minerals are those which
          are necessary for industrial development on a national
          scale and for the economy of the country. That is why
          matters relating to minor minerals have been left by
F         Parliament to the State Governments while reserving
          matters relating to minerals other than minor minerals to
          the Central Government. Sections 13, 14 and 15 fall in the
          group of sections which is headed "Rules for regulating
          the grant of prospecting licenses and mining leases".
          These three sections have to be read together ....... "
G
                                                     (Emphasis added)
           37. In light of the above, Dr. Dhawan submitted that there
    is a fundamental difference between minor and major minerals
    in regard to their use. Minor minerals like sand were extracted
H
           MIS. S.S. & COMPANY v. ORISSA MINING                 621
           CORPORATION LIMITED [AFTAB ALAM, J.]

     and consumed locally. On the other hand, major minerals were A
     essential for the industrial development and the economic growth
     of the country. This vast difference in their purpose and use was
     naturally reflected in their relative importance and the nature of
     mining. Learned counsel submitted that the importance of iron
     ore could not be over-stated. The production and consumption B
     of steel (the source of which is iron ore) is one of the indices of
     economic growth of a country. Iron ore, apart from being required
     for production of iron and steel at the national level, was also
     exported to international markets. Its extraction, therefore, apart
     from other things, requires to be carried out under far stricter c
     quality control measures. It would be, therefore, wholly
     inappropriate to compare the mining of iron ore with the lifting
     and excavation of sand or other minor minerals.
          38. We find substance in Dr. Dhawan's submission and
     we are unable to accept the arguments advanced on behalf of D
     the appellant that any distinction between minor and major
     minerals was illusory and the amendment in the clause in
     question, based on the distinction between the two, was arbitrary
     and did not serve any purpose.
           39. We have noted the submissions of the two sides and E
     have also said that on the issue whether there are any
     differences between minor and major minerals we are inclined
     to accept the position taken by Dr. Dhawan. But we think that in
     the context of the case an elaborate analysis of the provisions
     of the MM (R&D) Act and Mineral Concession Rules to bring F
     out the distinction between minor and major minerals is quite
~.   misconceived. We think it would be a mistake to see the NIT
     through the prism of the Act and the Rules. The NIT should not
     be viewed in the highly pedantic and legalistic manner as
     suggested by Mr. Nariman but it should be read and understood G
     for what it is. It is a notice issued by the Corporation which is
     engaged in the business of mining. The Corporation owns a .
     number of mines and wishes to give the work of raising,
     calibration and transport of iron ores from its mines on contract
     to an outside agency. It would be truism to say that the H
                                                                                -
    622       SUPREME COURT REPORTS                    [2008] 5 S.C.R.


A Corporation knows best the exact nature of its work and it is the       'r-
  best judge to say what is and what is not comparable to it. The
  expression "excluding minor minerals" used in the eligibility
  must, therefore, be viewed as commonly understood in the
  mining/industrial and commercial world. What the clause intends
B to convey is that the extraction of iron ore requires certain degree
  of technical expertise and competence and in order to have the
  required degree of competence the bidder must have some
  past experience of similar kind of work, clarifying further that
  working of minor minerals would not be accepted as qualifying
c experience/sufficient expertise for the purpose of the NIT. The
  distinction between minor and major minerals is well-known to
  the mining/industrial and commercial world and anyone ~ngaged
  in the business would know what the eligibility clause in the NIT
  demands without referring to the statute and case law and any
  abstruse arguments based thereon.
D
        40. There is yet another reason, weightier than the previous
  ones, for rejecting the appellant's challenge to the amendment
  made in the eligibility· clause. A grievance against the
  amendment, either based on the plea of mala fide or on the
E substance of the amendment can only be raised by someone
  whose position gets adversely affected by the amendment. The
  basic question therefore is how far the appellant can be said to
                                                                                -
  be affected by the amendment in actual terms. Clause 8(i) is
  simply the well known and the well established experience
F clause. In its unamended form as contained in NITs 65 and 75 it                ;.
  required the bidder to have some past experience of the work
                                                                                .__
  under contract. In other words, the bidder was required to have         ...
  successfully executed in the past some work similar in nature
  to the one being the subject matter of the contract. In NIT 85,
  which is for raising, calibration and transport of iron ore the
G
  clause in question stipulated that the tenderer must have past
  experience of similar work and made it further clear that working
  of minor mineral would not be accepted as similar in nature to
  the work under the NIT. It is thus manifest that the insertion of the   -r     I
  words "exclude mine and mineral" does not bring about any
H
      M/S. S.S. & COMPANY v. ORISSA MINING                  623
      CORPORATION LIMITED [AFTAB ALAM, J.)

alteration or change in the basic experience clciuse. It simply A
makes it clear and explicit that the working of any minor mineral
is not the same as raising, calibration and transport of iron ore
at Daitari Mines. It may be noted here that in the affidavit filed
before the High Court on behalf of the Corporation it was stated
as follows:                                                        B
      "Some changes in the eligibility criteria of NIT No.85 in
      comparison to NIT No.75 have been approved. In clause
      3(i) "excluding minor minerals" has been added in the 2nd
      line of the clause after the word minerals. Iron ore being
      too hard, drilling and blasting and strict quality control C
      measures will be essential which cannot be compared
      with mining of "minor minerals". To bring required
      expertise for undertaking efficient iron ore mining, the
      above change in eligibility criteria has been made."
                                                                   D
      41. Let us now examine how far the petitioner SSC can
feel aggrieved by what it describes as amendment.in the clause
in question. The appellant's own statement in regard to its
experience is to be found at Annexure P-1 in which it gives
description of five different kinds of work. The works at Sl.Nos.1
and 2 are described as follows:                                    E

     "Drilling, Blasting, Excavation, Loading and transportation
     of Sand and Lumps deploying HEMM from !he leasehold
     area of Faridabad Yamuna Sand Mines of M/s. S.S. &
     Company (M/s. SSC)".                                          F
    The other three works related to handling of materials like
Rock Phosphate, Gypsum, Copper Concentrate, flux, slag and
material handling work at Zinc Smelter Plant.
      On the basis of the appellant's own statement submitted G
along with the tender documents, the Technical Committee in
its report dated June 11, 2007, noted as follows :
     "M/s.S.S.& Co. has submitted experience certificate for
     working in Yamuna Sand Quarry in the district of Faridabad
     and other minor minerals including handling in the Plant. H
    624        SUPREME COURT REPORTS                      (2008] 5 S.C.R.


A         As per tbe eligibility. criteria of NIT under clause 8(i) the
          experience of the agency is not at par with the eligibility of
          NIT."
       42. We are unable to see any error much less any
  unreasonableness in the view taken by the Technical Committee
B and in rejecting the appellant's render on that basis. It does not
  require much imagination to hold that the work of lifting of sand
  from a riverbed or a sand quarry is not similar in nature to the
  work of raising, calibration and transport of iron ore.

c        43. It is significant to note here that the appellant's tender
    in response to NIT75 that did not contain the expressions
    "excluding minor mineral" was also rejected at the stage of
    technical bid since it did not satisfy the eligibility clause of having
    previously done some work similar in nature to the work under
    contract.
0
          44. It is thus evident to us that the appellant-SSC did not
   satisfy the eligibility criteria with regard to past experience even
   in terms of the unamended clause 8(i). Had the appellant been
   qualified in terms of the unamended clause and faced exclusion
E only as a result of the amendment in the criterion it might have
   been open to it to assail the introduction of the amendment. But
   that is not the case here. As noted above, the appellant was
 1 liable to be excluded, and was in fact excluded, even under the
   unamended clause 8(i) and, therefore, all arguments either
F based on mala fide or on the substance of the amendment lose
   all their relevance.
          45. Thus on a careful consideration of all the materials
    produced before the court and the submissions advanced by
    the two sides we find no merit in the case of SSC either.
G
         46. Both the appeals are accordingly rejected but with no
    order as to costs.
    K.K.T.                                        Appeals dismissed.

H


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