IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRTIETH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 17931 of 2007 Between: Help to Unemployed & Service Society rep by its Secretary, P. Hari Krishna S/o Venkateswara R/o Gun Bazar, Kabagiduem, Eluru, West Godavari District. ..... PETITIONER AND 1 The Government of Andhra Pradesh, rep by its Principal Secretary, Social Welfare Department, Secretarait, Hyderabad. 2 The Joint Colletor and Chairman Zilla Selection Committee, West Godavari District, Eluru. 3 Theresa Upadhi Kalpana Seva sangham, B.C. Colony, Bhimadole rep by its President K. Lenin, Bhimadole Mandal, Bhimadole, West Godavari District. 4 The Chaianya S.C. Contract Sangham, Eluru rep by Srinivas, R/o Navabpeta Colony, Eluru, West Godavari District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a direction, order or Writ more particularly one in the nature of Writ of Mandamus declaring the action of the 2nd Respondent in allotting contract of outsourcing to the 3rd and 4th respondents vide proceedings No. A5/842/2002, dt 25-5-207 as illegal, arbitrary, violative and colourable exercise of power and the same is also violative of the guidelines appended to G.O.Ms. No. 39 Social Welfare (Ser-I) Department, dt 16-5-2005 and also violative of terms and conditions annexed to the tender notification dt 3-5-2007 and consequently direct the 2nd respondent to allot the contract of outsourcing for supply of cooks, kamaties and watchmen to the petitioner who is the eligible Lowest tendered and pass such other order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case. Counsel for the Petitioner: MR.Y.V.RAVI PRASAD Counsel for the Respondent No.: GP FOR SOCIAL WELFARE The Court made the following : O R D E R : 1. This writ petition has been filed by Help to Unemployed and Service Society represented by its Secretary, P.Hari Krishna to issue a writ of mandamus declaring the action of 2nd respondent-Joint Collector and Chairman, Zilla Selection Committee, West Godavari District, Eluru in allotting contract of outsourcing to 3rd and 4th respondents vide Proceedings No.A5/842/2002, dated 24.5.2007 as illegal, arbitrary and violative of the guidelines appended to G.O.Ms.No.39 Social Welfare (Ser-I) Department dated 16.5.2005 and also violative of the terms and conditions annexed to tender notification dated 3.5.2007. 2. With the consent of learned counsel for the parties, this writ petition is taken up for final disposal at the admission stage itself. 3. The petitioner is a society registered under the Societies Registration Act, 2001. It obtained license on 17.5.2007 under Form No.VI as per the provisions of Sec.12 of A.P.Contract Labour (Regulation and Abolition) Act, 1971. The purpose of formation of the society is to provide outsourcing facility of class IV category workers like cook, kamati, watchman etc. to the needy organizations. The Government issued G.O.Ms.No.39 Social Welfare Department, dated 16.5.2005 to fill up vacancies of Class IV staff like cook, kamati, watchman etc. in social Welfare hostels on contract basis by the method of outsourcing from any licensed agency by calling tenders. In pursuance of the of the said government order, the 2nd respondent issued a tender notification dated 3.5.2007 calling for applications from the eligible licensed nodal agencies and registered agencies for supply of Class IV staff like cooks, kamatis, watchman etc., on contract basis initially for a period of one year. In pursuance of the notification 17 nodal agencies including the petitioner society submitted tenders for providing outsourcing services. The sealed tenders were opened on 19-5-2007. The Chaitanya S.C. Contract Sangham-4th respondent quoted an amount of Rs.2,626/- for providing outsourcing services of kamatis and watchman and whereas Therasa Upadhi Kalpana Seva Sangham-3rd respondent quoted an amount of Rs.2,710/- for supply of cooks for a period of one year. The 2nd respondent vide his proceedings dated 24.5.2007 accepted the tenders submitted by R3 and R4 for supply of outsourcing services. The petitioner society quoted rates for providing outsourcing services as per the notification issued under A.P. Contract Labour (Regulation and Abolition) Act, 1970. According to the said notification minimum wage prescribed for the unskilled worker is Rs.2,386/- and semi-skilled workers is Rs.3020/- and Rs.3654/- for skilled worker per month. Keeping in view the minimum wages the petitioner quoted Rs.3,120/- (including Rs.100/- towards service charges) for supply of cooks and Rs.2,486/- (including Rs.100/- towards service charges) for supply of Kamati and watchman. The 2nd respondent instead of accepting tender submitted by the petitioner society, which quoted the rates in tune with the notification issued under A.P. Contract Labour (Regulation and Abolition) Act, 1970 accepted the tenders of R3 and R4. R3 and R4 are not eligible for allotment of contract work, as on the date of opening the tenders i.e. 19.5.2007 they did not possesses valid licenses. Hence, this writ petition by the petitioner- society with the prayer as stated supra. 4. The respondents filed counter affidavits. Sri.V.Durga Das, Joint Collector, District Purchase Committee, Office of Social Welfare Department, Eluru, West Godavari District has sworn to the counter affidavit filed on behalf of R1 and R2. It is stated in the counter affidavit that petitioner-society, R3, R4 and some others (in all 17) have submitted their sealed tenders. The rates quoted by the respondents 3 and 4 were found to be lowest amongst all the tenderers and therefore their tenders came to be accepted. R3 and R4 registered their agreements under A.P. Contract Labour (Regulation and Abolition) Act, 1970 after issuing Form V by the Principal employer i.e. Deputy Director, Social Welfare Department, Eluru, West Godavari District. As per Rule 21(2) of the A.P.Contract Labour (Regulation and Abolition) Act, 1970 every application for license shall be accompanied by the certificate issued by the principal employer in Form V to the effect that the applicant has been employed by him as a contract in relation to the establishment and that he undertakes to be bound by all the provisions of the Act and Rules made there under. The petitioner’s tender was rejected on the ground that he quoted the wages of workers less than minimum wages of Rs.2,600/- fixed by the District Collector, Eluru, West Godavari. The E.M.D which was paid by the petitioner through D.D. was returned by the Deputy Director on 19.5.2005 and the proceedings dated 24.5.2005 came to be issued by 2nd respondent allotting the works to R3 and R4 as per the procedure laid down under G.O.Ms.No.39 Social Welfare (Ser-I) Department dated 16.5.2005. 5. K.Lenin has sworn to the counter affidavit of R3 and R4. It is stated in the counter affidavit that R3 and R4 are registered societies under the Societies Registration Act, 2001 and they are licensed service provider agencies for the purpose of supply of man power on contract basis to social Welfare Hostels and in pursuance of the tender notification, they along with some others including the petitioner-society submitted tenders and tenders came to be opened on 19.5.2007 and rates quoted by them found to be lowest and accordingly the selection committee allotted the works to them. 6. Heard learned counsel appearing for the petitioner-society, learned Government Pleader for Social Welfare on behalf of R1 and R2 and learned counsel appearing for R3 and R4. 7. Learned counsel appearing for the petitioner-society submits that R3 and R4 are disqualified to participate in the tender since they did not possess valid license under A.P.Contract Labour (Regulation and Abolition) Act, 1971 as on the date of submitting the tenders and therefore allotment of works to them is contrary to the guidelines issued in G.O.Ms.No.39 Social Welfare (Ser-I) Department dated 16.5.2005. A further submission has been made that the rates quoted by R3 and R4 are far below the minimum wages prescribed by the Government in notification dated 27.1.2005 and therefore their tenders are liable to be rejected. 8. Learned Government Pleader for Social Welfare submits that R3 and R4 societies are registered societies and the licenses are required to be obtained by them after issuance of certificate by the employer and on issuance of such certificates R3 and R4 got the licenses as provided under A.P.Contract Labour (Regulation and Abolition) Act, 1971 and thus the allotment of works to R3 and R4 who quoted the lowest rates for kamati, cook, watchman etc. is legal and proper. 9. Learned counsel appearing for R3 and R4 submits that R3 and R4 got the licenses as provided under A.P.Contract Labour (Regulation and Abolition) Act, 1971 on the certificate issued by the principal employer and thus the allotment of works to them is legal and proper. A further submission has been made that the petitioner-society is not entitled to question the allotment of work to R3 and R4 since it quoted the rates below the minimum wages with regard to supply of cook, kamati, watchman etc. 10. The petitioner society urged two grounds: (1) The rates quoted by R3 and R4 are far below the minimum wages and therefore the tenders are liable to be rejected; (2) R3 and R3 had no licenses as provided under A.P.Contract Labour (Regulation and Abolition) Act, 1971 as on the date of tender and therefore they are ineligible to participate in the tenders. 11. It is crystal clear from the proceedings issued by 2nd respondent that the rates quoted by the petitioner-society are in tune with the minimum wages fixed by the District Collector. The other ground urged by the petitioner-society is that R3 and R4 had no valid license under A.P.Contract Labour (Regulation and Abolition) Act, 1971 as on the date of tender. Under Rule 21(2) of the A.P.Contract Labour (Regulation and Abolition) Act, 1970 an application for grant of license shall be accompanied by a certificate of the principal employer in Form No.V. Even in the terms and conditions in the tender, what is stated is that agency shall be registered under A.P.Contract Labour (Regulation and Abolition) Act, 1970. Indisputably, the respondents 3 and 4 got the licenses under the A.P. Contract Labour (Regulation and Abolition) Act, 1976 on issuance of Form No.V by the 2nd respondent. 12. In view of the above discussion, I find that the grounds urged by the petitioner-society questioning the acceptance of the tenders of R3 and R4 are devoid of merits and hence the writ petition is dismissed at the admission stage. No costs. 30th June, 2008. (B.Seshasayana Reddy,J) tnb ASSISTANT REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{TRT} THE HONOURABLE SRI JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO.17931 OF 2007 30TH JUNE 2008.