HC quashes egg tenders for TN noon meal scheme

  • | Friday | 22nd February, 2019

The court was hearing a batch of petitions from egg traders and suppliers, including those from other states, who challenged the G.O. MADURAI: The Madurai bench of the Madras high court on Thursday quashed an August 2018 Government Order that allowed zone-wide tender system for procurement of eggs for the noon meal scheme and a subsequent notification that excluded egg suppliers and traders. passed on August 20 by the social welfare and nutritious meal programme department.Until the G.O was passed, state-wide tenders were issued for supply of eggs to noon meal centres in the entire state. allowing zone wise tender has no valid reasoning and is not in public interest. revoking the earlier system and put in place a zone-wise tender system for six months.Senior counsel representing the egg suppliers and traders argued that the earlier policy of a single state-wise tender was a success and there was no reason to replace it with a zonewise tender.

MADURAI: The Madurai bench of the Madras high court on Thursday quashed an August 2018 Government Order that allowed zone-wide tender system for procurement of eggs for the noon meal scheme and a subsequent notification that excluded egg suppliers and traders. Terming it arbitrary and unreasonable, the court directed the state to revert back to the prevailing practice of a single state-wise tender.Directing the state to issue a fresh tender notification , the court said the existing suppliers shall continue to supply the eggs in the same quantity and at the same price as originally awarded until new tenders are finalized and suppliers are selected. The court was hearing a batch of petitions from egg traders and suppliers, including those from other states, who challenged the G.O. passed on August 20 by the social welfare and nutritious meal programme department.Until the G.O was passed, state-wide tenders were issued for supply of eggs to noon meal centres in the entire state. For 2018-19, a tender was floated on June 11, 2018 and the authorities rejected technical bid of all participating six firms and a fresh tender was issued next month.Based on a representation by the Tamil Nadu Muttai Kozhi Pannaiyalargal Marketing society in early August, the state government passed a fresh G.O. revoking the earlier system and put in place a zone-wise tender system for six months.Senior counsel representing the egg suppliers and traders argued that the earlier policy of a single state-wise tender was a success and there was no reason to replace it with a zonewise tender. It was also pointed out that the decision was taken by the minister for social welfare based on a representation by a society registered only in 2015, whereas such a policy decision has to be taken by the council of ministers.“Zone wise tender will lead to corrupt practices and formation of cartels, whereas under the old system all successful bidders were collecting eggs from several small farmers and they were all benefitted,” counsel for one of the petitioners submitted.In response, Advocate General Vijay Narayan submitted that the new G.O was passed to benefit egg producers within the state, who may otherwise be exploited by middlemen. The advocate general also argued that the government order is a policy decision of the government and cannot be subject to judicial review.Justice R Mahadevan, after perusing the arguments from either sides, observed that the only reason given by the state for floating a zone-wise tender in place of the existing practice is the representation by the egg manufacturers manufacturing society and that excluding the egg suppliers and creating an embargo on traders from outside the state is a colourable exercise of power The court held that the policy decision of the government can always be subjected to judicial review on the grounds of unreasonableness and the G.O. allowing zone wise tender has no valid reasoning and is not in public interest.

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