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The Delhi High Court granted the benefit of remission under Delhi Prison Rules 2018

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Title: INOX AIR PRODUCTS PRIVATE LIMITED vs MR. ARUN RATHI

Date of Decision: 05.07.2023

EX.P. 109/2019

CORAM: HON’BLE MR. JUSTICE MANOJ KUMAR OHRI

Introduction

Delhi High Court granted the benefit of remission under Delhi Prison Rules 2018 and held that a plain reading of rules would show that rule 1175 defines the eligibility for remission and it has defined the term “Convicted prisoner” which would include both civil as well as criminal prisoners.

Facts of the Case

In brief, this Court found the applicant guilty of contempt of court for disobeying instructions and the undertaking made in an order dated 24.05.2019, taking into account the facts of the case and particularly the applicant’s behaviour to the knowledgeable Arbitrator. The petitioner was ordered by the court to pay the decree holder an amount of Rs. 5.05 crores, or the value of the missing machinery and equipment. Further instructions said that the applicant would face a three-month sentence of civil jail if the aforementioned sum was not paid within six weeks.

By means of CONT.APP. (C)15/2019, the aforementioned order was contested before the Division Bench. The appeal was dismissed by decision dated 26.11.2019, to which a S.L.P. (Crl.) No. 665 of 2020 was filed in response. This claim was also rejected, but the deadline for depositing the money was extended by orders dated 11.11.2022 and 15.12.2022. After then, on January 13, 2023, a Review Petition No. 12/2023 submitted to the Division Bench was likewise dismissed.

On March 29, 2023, the court ordered the petitioner to appear and serve three months of civil incarceration in accordance with the decision dated May 25, 2019, noting that he had neglected to deposit the sum of Rs. 5.05 crores. According to reports, the applicant turned himself in on April 10, 2023, and has been incarcerated since.

Analysis of the case

The order dated 24.05.2019 was issued in response to a petition brought under Section 12 of the Contempt of Courts Act, 1971 (hereinafter referred to as the “Act”). Punishment for disobedience and noncompliance with the court’s order is the outcome of the civil contempt proceedings under the Act. The procedures differ from execution proceedings under the Code of Civil Procedure in that the Court must expressly satisfy it and record a finding that the disobedience was deliberate and purposeful in the contempt proceedings.

In Sections 3(2), (3), and (4) of The Prisons Act of 1894, the terms “criminal prisoner,” “convicted criminal prisoner,” and “civil prisoner” are defined. the terms “civil prisoners,” “convicted criminal prisoners,” and “criminal prisoner” are likewise defined in the Delhi Prisons Act, 2000 (Delhi Act No. 2 of 2002), and they are identical to those used in The Prisons Act, 1984. The Delhi Prison Rules, 2018 (hence referred to as the “Rules”) were created by the government of the NCT of Delhi in accordance with its authority under Section 71 of The Delhi Prisons Act, 2000.

Court held, one of the most prized elements of the Indian Constitution is personal freedom. and its infringement cannot occur except in line with the law and in accordance with its provisions, as stated in Article 21 of the Constitution. It is commonly known that a legal process cannot be capricious, unjust, or irrational.

This Court believes that a straightforward interpretation of the aforementioned Rules would demonstrate that the term “convicted prisoner” is used when describing eligibility for remission in Rule 1175. This phrase is comprehensive and makes no distinction between a “criminal prisoner” and a “civil prisoner” who has been found guilty. Although there is no specific provision for remission in Chapter XXXIII of the Rules that apply to civil prisoners, this does not indicate that Rule 1175 of the Rules is no longer relevant to the petitioner. Additionally, Rule 1176 does not specifically exclude civil prisoners. This Court thus believes that the aforementioned definition and rule apply to both types of convicts. Additionally, the claim that the petitioner has not been awarded a substantive sentence is equally fallacious as the applicant has been convicted and punished with substantive sentence of detention in civil prison for three months and as such, he is eligible for remission in terms of Rule 1175(1).

Thus the court allowed the application and directed the Superintendent to provide the applicant or contestant with the benefit of remission in accordance with the relevant Rules.

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Delhi High Court granted compensation and set aside the order of the railway tribunal.

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Title: RAM PRATAP & ANR vs UNION OF INDIA (MINISTRY OF RAILWAY)

Reserved on: 15.03.2023

Pronounced on: 05.07.2023

FAO 172/2014

CORAM: HON’BLE MR. JUSTICE MANOJ KUMAR OHRI

Introduction

Delhi High court set aside the order passed by the Railway Claims Tribunal, Principal Bench, Delhi in OA(IIu)008/2013 and granted compensation to the appellants under section 23 of the railway claims tribunal act 1987.

Facts of the case

The appellants seek to challenge the decision made by the Railway Claims Tribunal, Principal Bench, Delhi in OA(IIu)008/2013, which dismissed the claim application they submitted. This appeal was filed in accordance with Section 23 of the Railway Claims Tribunal Act, 1987 (hereinafter referred to as the “Act”).

The appellants’ knowledgeable counsel argued that the Tribunal had rejected the appellants’ claim even though the two travel tickets (for the forward and return voyage) had been found on the deceased individual.

In contrast, the respondent’s learned CGSC argued that the Tribunal correctly rejected the assertions that the deceased was a bona fide passenger and that the event an untoward incident occurred while defending the disputed order.

Analysis of the court

A review of the file would also demonstrate that the tickets were confirmed and discovered to have been issued on June 5, 2012, at 12:18. Even though the trip was started on that day with considerable delay, The appellants claimed in their testimony that after buying the tickets, the deceased went home for some personal matters before returning to travel later that evening. In the deceased should not be denied the status of having been a genuine passenger just because there was a small window of time between the time the tickets were issued and the journey was actually taken, according to this Court’s FAO 172/2014 Page 3 of 4 opinion. In addition, the Tribunal’s assertion that the claim averments are implausible since neither the deceased’s fellow passengers nor the authorities were informed of the occurrence is false and should be rejected given the circumstances of the case.

In light of the foregoing reasoning, this Court believes that the Tribunal erred in denying the appellants’ claim application. As a result, the appeal is granted and the contested ruling is reversed.

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Delhi High Court Dismissed the appeal challenging the order of a district court due to lack of filing of written statement on time.

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Title: SANTOSH KUMAR AGGARWAL vs M/S ALUCO PANEL LIMITED

Date of Decision: 05th July, 2023

+ RFA(COMM) 131/2023

CORAM: HON’BLE MR. JUSTICE MANMOHAN

HON’BLE MS. JUSTICE MINI PUSHKARNA

Introduction

Delhi High Court Dismissed the appeal challenging the order of a district court due to lack of filing of written statement on time thus defence for lack of territorial jurisdiction could not be raised.

Facts of the case

Present appeal has been filed challenging the order dated 11th November, 2022 passed by the learned District Judge in CS No.1235/2018 whereby the suit was decreed in favour of the respondent-plaintiff.

Analysis and Decision of the case

This Court determines that the appellant-defendant did not file the written statement or raise any defences despite participating throughout the suit processes, having heard the learned appellant’s counsel and having read the paper book. Despite the fact that an application under ruling IX Rule 7 CPC and an application under Order VII Rule 11 CPC were both submitted on October 17, 2019, both on the grounds that the Court lacked geographical jurisdiction, the applications were both rejected by a detailed ruling dated October 13, 2022. It is established law that a written statement cannot be filed more than 120 days after it is due. (See: 2019 SCC 210, SCG Contract (India) Pvt. Ltd. vs. K.S. Chamankar Infrastructure Pvt. Ltd. As a result, the order dated 17th October, 2019 is in accordance with law.

Additionally, this Court believes that the defences of non-delivery of goods against bills nos. 10 and 30 and lack of jurisdiction in the current case are valid arguments. The Trial Court was unable to address the aforementioned defences since, in the current instance, the opportunity to provide a written statement had expired because it had not been submitted within the allotted time frame.

 Additionally, this Court also believes that the decision interpreting Section 12A of the Commercial Courts Act prospectively renders the statute effective as of August 20, 2022. The aforementioned judgement offers no support to the appellant because the lawsuit in the current instance was filed in 2018.

As a result, the current appeal is dismissed together with any pending petitions since it lacks merit.

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Delhi High Court dismissed the appeal filed against the judgement passed by the single judge bench upholding the candidature of respondents

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Title: MR KISHOR BANDEKAR AND ORS vs MR MAHESH CANDOLKAR AND ORS

Reserved on: 03rd July, 2023

Pronounced on: 06th July, 2023

+ LPA 504/2023 & CAV 312/2023, CM APPLs. 32400-32403/2023, 32711/2023

CORAM: HON’BLE THE CHIEF JUSTICE MR. SATISH CHANDRA SHARMA

HON’BLE MR. JUSTICE SANJEEV NARULA

Introduction

Delhi High Court dismissed the appeal filed against the judgement dated 02nd June, 2023 passed by the learned Single Judge in W.P.(C) 15097/2021, upholding the order dated 14th December, 2021 passed by Appellate Authority of All-India Chess Federation, New Delhi [“AICF”].

Facts of the Case

The Goa Chess Association [“GCA”] is a state-level sports organisation that is affiliated with both the AICF and the Sports Authority of Goa. It was established in accordance with the Societies Registration Act, 1860. The GCA’s Memorandum of Association (hence, “MoA”) and Rules and Regulations, all of which have been endorsed by the association’s General Body, serve as the framework for its governance.

A crucial adjustment to the GCA’s constitution was made by the General Body at its meeting on January 8th, 2017, raising the number of elected members of the Executive Committee from seven to twelve.

The GCA announced the elections for the Executive Committee on July 22, 2021. The list of accepted nomination forms was made public on August 5, 2021, and on August 10, 2021, the Presiding Officer (the “PO”) announced the names of the candidates elected to the North and South Goa Taluka Associations. The nomination forms of Respondents Nos. 1 through 4 were also ruled to be invalid, and a number of candidates from the talukas of Barder, Tiswadi, Ponda, and Salcete were found to have won their elections without opposition.

Respondents Nos. 1 to 4 contested the aforementioned PO disqualification of candidature before the AICF Ethics Commission in line with the AICF Code of Ethics. The Commission reversed PO’s decision through an order that was signed on October 19, 2021, and instructed that the voting procedure be completed within two weeks of the day that the order was received. The Appellants filed an appeal against this ruling with the AICF Appellate Authority, but it was denied on December 14 of that year, and the Ethics Commission’s judgement was upheld.

2.5. Invoking Article 226 of the Constitution of India, 1950, the appellants filed W.P.(C) 15097/2021 after being dissatisfied with the Appellate Authority’s ruling.

However, on June 2, 2023, the learned Single Judge dismissed the appeal and upheld Appellate Authority’s decision.

Analysis & Decision of the court

The Delhi high court held that The General Body meeting on January 8, 2017, when it was decided to expand the number of elected members of the GCA’s Executive Committee, is where the dispute’s origins may be found. This choice was made in order to permit additional committee members who might aid in the growth of chess in Goa and broaden the association’s operations. The MoA and GCA Rules and Regulations modifications were authorised by the resolution that came out of this meeting. Twelve elected members and one nominated member from each associated Taluka Chess Association will make up the Executive Committee of the GCA, according to the updated bye-laws and MoA.

 The challenged ruling exhibits a careful consideration of the provisions of the MoA and Rules and Regulations of GCA. The prerequisites for a candidate, the election process, the tenure of the Committee members, and the mechanism for filling any vacancies on the Executive Committee are all outlined in Rule 42(i)(a) (extracted above). Additionally, it describes the election process, including the criteria for nominations, the review of nominations, and the roles of the President, Secretary, and designated Presiding Officer. Contrary to what Mr. Nayyar has emphasised, this clause does not support his allegation. The aim to expand the number of delegates is mentioned in the minutes of the meeting, but it is not stated expressly that these representatives should be equally divided across all talukas. That would imply that it is possible for a taluka to have more than one representative on the Executive Committee.

This viewpoint is reinforced by the modified Clause 13 of the Memorandum of Agreement, which stipulates that one delegate from each associated taluka should be a member of the Executive Committee, however it leaves open the possibility of electing an unlimited number of office holders from each taluka. The number of office bearers who can be chosen from a particular taluka is not limited under Rule 42(i)(a) of the GCA’s Rules and Regulations. The language employed in Rule 42(ii)(a), which requires that candidates for the Executive Committee elections be delegates with voting rights of and sponsored by Taluka Associations, supports the learned Single Judge’s view. According to this regulation, eligibility is dependent on being a delegate and instead of the number of representatives per taluka, voting rights.

Rule 42(i)(a), which is instrumental in the formation of Executive Committee comprising of both elected and nominated representatives, does not impose any limitations as canvassed by the Appellants. There is no requirement to guarantee that each taluka is represented on the Executive Committee under Rule 42(i)(a). This interpretation conforms to the erudite Single Judge’s opinion, which we also agree with.

We see no justification for interfering with the challenged finding relating to the PO’s judgement since we do not think the Appellants’ objection to the interpretation of such regulations has any validity. Therefore, the learned Single Judge’s opinion is still unchallengeable with regard to this matter as well. In conclusion, the erudite Single Judge’s interpretation based on the explicit wording employed in the GCA’s Rules and Regulations as well as the General Body resolution, appears to be accurate. Instead than restricting the number of office bearers per taluka, it appears that the stated requirements’ main goal is to increase representation and guarantee that each taluka has at least one delegate on the Executive Committee.

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Delhi High Court allowed the writ petition filed and dismissed the order passed by the Container Corporation of India Ltd.

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Title: Loadstar Equipment Ltd. Vs Container Corporation of India Ltd.

Decision: 04.07.23

W.P.(C) 5040/2023 & CM APPL. 19721/2023

CORAM: HON’BLE THE CHIEF JUSTICE MR. SATISH CHANDRA SHARMA

 HON’BLE MR. JUSTICE SUBRAMONIUM PRASAD

Introduction

Delhi High Court allowed the writ petition filed and dismissed the order passed by the Container Corporation of India Ltd, disqualifying the petitioner from participating in the bidding of tender bearing reference no. CON/AREA1/TECH/FORKLIFT-20/2023, which was floated by Respondent No. 1 on their website vide NIT dated 08.02.2023.

Facts of the Case

The Respondent No. 1 invited applications on the government portal for bids from Original Equipment Manufacturers (OEMs)/authorized dealers through a two packet online open tendering system, at an estimated total cost of Rs. 38,11,40,000/-, for the design, manufacture, supply, and commissioning of 20 forklifts with a capacity of 35 tonnes at a specified terminal. This is the background to the current petition.

Respondent No.1/CONCOR subsequently issued a corrigendum in respect of the part of the NIT document which lays down qualification criterion for bidders. Accordingly, Clause 2.1(b) under Section II “General Instructions to Bidders” was added to the NIT document.

Upon examination of the bid documents in the technical stage, Respondent No.1 issued communications to the bidding parties on 23.03.2023 and again on 24.03.2023, calling upon them to submit additional documents to rectify discrepancies found in the documents, latest by 29.03.2023. and The Petitioner submitted their reply to the aforesaid communication and submitted documents to the Respondent vide emails dated 28.03.2023 and 29.03.2023

On a perusal of the documents submitted by the Petitioner, the Tender Evaluation Committee of Respondent No.1 found the Petitioner to be technically not qualified and rejected the bid of the Petitioner vide impugned communication dated 18.04.2023. The Petitioner thereafter addressed an email to the CMD of Respondent No. 1, stating that no reasons had been assigned for their disqualification, and requested the intervention of CMD of Respondent No. 1 to permit the Petitioner to give further clarifications. However, there was no response to this communication.

Being aggrieved by the decision of the Respondent No.1 dated 18.04.2023, disqualifying the Petitioner from the tender process, the Petitioner has filed the instant petition on 19.04.2023, challenging the impugned communication.

Analysis and Decision of the court

In accordance with Clause 2.1, a qualified bidder must have submitted at least one purchase order for a comparable good to at least one government department, CPSC, SPSC, public limited company, etc. during the previous three years and on or before the last day of the financial year immediately preceding the one for which the bid is being submitted. Additionally, it states that a bidder and an authorised dealer cannot submit separate bids for the same product or item in the same tender.

According to Clause 2.1, the manufacturer or an authorised dealer must demonstrate that they have successfully delivered or completed one purchase order in order to be taken into consideration for the tender. According to the certificate provided by APL Apollo Steel Pipes, M/s Excellent Engineering & Allied Service Private Limited provided the device produced by the petitioner.

The justification offered by Respondent No. 1 was that M/s Excellent Engineering & Allied Service Private Limited was the beneficiary of the certificate issued by APL Apollo Steel Pipes. This justification is inadmissible since the proof demonstrates that M/s Excellent Engineering & Allied Service Private Limited worked with Apollo Steel Pipes to complete the machine the petitioner built.

It is undeniably well established that judicial review of administrative acts, including those involving tenders, is severely constrained. However, judicial review may be used to stop arbitrary, unreasonable, and illogical behaviour.

The fundamental requirement of Article 14 of the Indian Constitution is now well established and has been upheld numerous times by the Apex Court. Non-arbitrariness in substance and essence is the lifeblood of fair play, and State actions are subject to judicial review to the extent that the State must act lawfully for a discernible reason and not arbitrarily. The Court must intervene in order to exercise its authority under Article 226 of the Indian Constitution if the State or an instrumentality of the State fails to behave reasonably or fairly in the awarding of contracts. Vice Chairman & Managing Director, City and Industrial Development Corporation of Maharashtra Ltd. and Others v. Shishir Realty Private Limited and Others, 2021 SCC OnLine SC 1141 a case decided by the Supreme Court, where it was held that “Fairness and the good faith standard ingrained in the contracts entered into by public authorities mandates such public authorities to conduct themselves in a non-arbitrary manner during the performance of their contractual obligations” and “The constitutional guarantee against arbitrariness as provided under Article 14, demands the State to act in a fair and reasonable manner unless public interest demands otherwise. However, the degree of compromise of any private legitimate interest must correspond proportionately to the public interest, so claimed”

Arbitrariness is the antithesis of Article 14 of the Indian Constitution, and the State must operate in a fair and reasonable manner, as has been well-established and stated by the Apex Court. As previously stated, the bidder who is a manufacturer only needed to demonstrate that it has experience supplying at least one single purchase order of government departments, CPSEs, SPSEs, Public Listed Companies, ICD, DCT, MMLP, Ports, CFS, CTOs for similar item during the previous three financial years and current financial year last day of month prior to the one in which tender is invited.

A thorough study of Clauses 2.1, 5.4, and Annexures 10 and 11 of the NIT reveals that the maker must merely demonstrate that it has provided a machine that has been installed satisfactorily. In a similar vein, Annexure-14 stipulates that the maker must also provide the certificate.

Since the Petitioner has demonstrated that it satisfies the qualifying requirements, their bid shouldn’t have been turned down.

The Respondent No. 1 was instructed to open the Petitioner’s financial bid during the hearing, and it turned out that the Petitioner was the lowest bidder.

 Given the foregoing, the writ petition and any pending applications, if any, are approved. It is mandated that the Respondents go forward in line with the law.

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