Bombay High Court
Maharashtra Tank Lorry Owners vs Bharat Petroleum Corporation Limited on 3 April, 2025
Author: M. S. Karnik
Bench: M. S. Karnik
2025:BHC-OS:5968-DB
WP.70-2024
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
WRIT PETITION NO. 70 OF 2024
Maharashtra Tank Lorry Owners
Association, 38, Sewri Co-op.
Industrial Estate, Sewri-Bunder Rd.
Sewri, Mumbi - 400 015. ... Petitioner
Versus
1. Bharat Petroleum Corporation
Limited, Bharat Bhavan,
Ballard Estate, Fort,
Mumbai-400 001.
2. Director-Marketing,
Bharat Petroleum Corporation
Limited, Bharat Bhavan,
Ballard Estate, Fort,
Mumbai-400 001.
3. ED. I and C,
Bharat Petroleum Corporation Ltd.
E Wing, 9th floor, Maker Towers,
Cuffe Parade, Mumbai-400 005.
4. Senior Manager, I and C,
Bharat Petroleum Corporation Ltd.
E Wing, 9th floor, Maker Towers,
Cuffe Parade, Mumbai-400 005.
5. Procurement Leader,
(CPO Marketing-Group 10)
Bharat Petroleum Corporation Ltd.
CPO-M, Sewri Fort Road, Sewri,
Mumbai-400 074.
6. Procurement Manager,
(CPO Marketing-Group 10)
Bharat Petroleum Corporation Ltd.
PMB 1
WP.70-2024
CPO-M, Sewri Fort Road, Sewri,
Mumbai-400 074.
7. Transport Manager,
Bharat Petroleum Corporation Ltd.
Sector 2, Kharghar,
Navi Mumbai-410 210.
8. I and C-Cordinator,
Bharat Petroleum Refinery,
Mahul, Chembur, Mumbai-400 074.
9. GM I and C, Logistic HQ,
Bharat Petroleum Corporation Ltd.
E Wing, 9th floor, Maker Towers,
Cuffe Parade, Mumbai-400 005.
10. Aggarwal Enterprises
Near Petrol Pump, Dabwali Road,
Kalanwali Dist, Sirsa- 125201
11. Aman Roadlines,
6 Jankalyan Society, Maredia Compound
Near Kokanipada, Masjid kurar,
Malad East, Mumbai 400097
12. Aneeta Roadlies
Room No. B-10, Apna Nagar,
Halav Pool, Hall Road, Kurla West
Mumbai 400070.
13. ANS Transport
5/330-A Mullai Nagar,
Mohanur Road, Namakkal-637001.
14. Arungarariamman Transport,
138/4, 4th Floor, LMR Shopping Arcade,
Salem Road, Namakkal-637001.
15. Avadhesh Transport,
C-304, Ramayan Park Society,
Opp Kaival Complex,
PMB 2
WP.70-2024
Near Navagam Bus Stand, Dindoli,
Surat, Gujarat-394210.
16. Bhagat Singh & Sons,
365, Sane Guruji Marg Agripada
Mumbai-400011.
17. Ever Green Trailor Service
3/335/1, Vallipuram (Auto Nagar)
Near Ashok Leyland Training Center,
Namakkal-637003.
18. G K Logistics
Group No. 7, Chaw 1 No. 81
Room No. 1974, Near Gurudwara,
Tagore Nagar, Vikroli East
Mumbai-400083.
19. Chaudhary Bulk Carriers
Plot No 61, Gami Industrial Park,
Pawane Navi Mumbai-400705.
20. Garg Trading Co.
Plot No 355, Ward 12/B Tagore Road,
Gandhidham Kutch, Gujrat - 370201.
21. Manasa Enterprise
B-86, APIIC Colony, Hyderabad-500062.
22. MTN Roadlines,
113, Village Jastana Khurd,
Tehsil Dera Bassi, Sasnagar,
Mohhali-40501.
23. NGR Oil Carrier
113, Village Jatsana Khund, Lalru,
SAS Nagar Mohali, Punjab-140501.
24. Shiva Roadlines
Unit No.2. Plot No.7, Sector No.19C,
Vashi, Navi Mumbai-400706.
PMB 3
WP.70-2024
25. Shri Ganesh Enterprises
Shop No.01. Shubh Kalash CHS,
Plot No.35. Sec No 10E, Kalamboli,
Navi Mumbai - 410218.
26. Shyam Roadlines
Room No.5, Chawl No.9, Pipe Road,
Gurudutt Nagar, Rassiwala Tabela,
Kurla-400070.
27. T A Roadlines
D/1, Block N, Shram Shanti Building,
Wadala Tarck Terminal, Mumbai 400037.
28. Vaibhav Logistics
No.6/948-A, Velmurugan Towers,
Paramathi Road, Namakkal,
Tamil Naidu - 637001.
29. Vasta Enterprises
603/B, Devashree Park, Bldg,
Kolshet Road, Opp. Canara Road,
Thane West-400607.
30. Aakash Ganga Roadlines
A-101, Kartikya Tower CHS Ltd,
Opp. St. Thomas Church,
Saibaba Nagar, Mira Road East,
Dist Thane-401107.
31. Shree Datta Carriers
C-215, Steel Chamber Tower,
Plot No. 514, Kalamboli,
Navi Mumbai 410218.
32. Raj Bulk Movers
Vashi Plaza Commercial Premises
Cp-Op Societies Limited,
Office No.516. D-Wing, 3rd Floor,
Plot No 80/81, Sec-17, Vashi,
Navi-Mumbai-400703.
PMB 4
WP.70-2024
33. Hariprabha Roadlines,
Room No.1818, CHL No.62, GR Floor,
Group No.7, Tagore Nagar,
Opp. Bldg No 415,
Near E.E Highway, Vikhroli East,
Mumbai - 400083.
34. Karan Carriers
Shop No. 31, Muncipal Corporation Market,
Railway Road, Haridwar - 249401.
35. Progressive Transport Co.
307, Kailesh Espalande,
Lal Bhadur Shashtri Marg,
Ghatkopar West, Mumbai 400086.
36. Sunitha Enterprises
H. No.3-6-521/1, Gharonda,
Surya Udaya Apartments,
Himayath Nagar, Hyderbad,
Telangana - 500029. .... Respondents
****
Mr Mahesh Shukla i/b. Ms Sonia Sunil, for the Petitioner.
Mr Nikhil Sakhardande, Senior Advocate a/w Mr R. V. Pawar i/b.
Pragnya Legal, for Respondent-BPCL.
****
CORAM : ALOK ARADHE, CJ &
M. S. KARNIK, J.
DATE : 3rd APRIL, 2025
JUDGMENT (PER M. S. KARNIK, J.) :
-
1. The Petitioner - Maharashtra Tank Lorry Owners
Association invoked the jurisdiction of this Court under Article
WP.70-2024
226 of the Constitution of India thereby prays to quash and set
aside the tender notice dated 25th October 2023 as well as
quash and set aside the Letter of Intent dated 24th April 2024.
The Petitioner seeks a direction to Respondent No.1 - Bharat
Petroleum Corporation Limited ('BPCL' for short) to issue fresh
tender in consonance with the earlier terms and conditions
incorporated in the previous tender.
2. Mr Mahesh Shukla, learned counsel for the Petitioner
submitted that BPCL issues tender for providing service of
transportation of Bulk Special Petroleum products
(MTO/Hexane/SBP) and the members of the Petitioner
Association participate in the said bidding. The contract is given
to the successful bidders and this contract is for a period of five
years. BPCL is engaged in the business of manufacturing and
distribution of petrol, diesel and their allied products.
3. Learned counsel for the Petitioner submitted that its
members have rendered services, as per the terms and
conditions of the contract being awarded to them, for over last
45 years, without any complaint. The process of bidding and
thereafter awarding the contract and consequently execution of
WP.70-2024
the said contract by the successful bidders who are members
of the Petitioner Association has been going on smoothly
without any hindrance for 45 years. As the tenure of the earlier
contract was to come to an end on 31st December 2023, BPCL
issued transport tender dated 25th October 2023 by name
Tender for Road Transportation of Bulk Special Petroleum
products (MTO/Hexane/SBP) by bottom loading tank lorries
from BPCL Mumbai Refinery for deliveries to BPCL storage
locations and customers. However, by issuing this tender the
Respondents have made drastic changes and alterations which
are detrimental to the interest of the members of the Petitioner
Association.
4. Learned counsel for the Petitioner submitted that the
changes made in terms and conditions of the new tender are
very stringent and badly affect the members of the Petitioner
who are doing business with the BPCL for the last 45 years. A
meeting was therefore convened on 2nd November 2023 when
the transporters raised their concerns. A request was made to
extend the deadline for bidding and it was mutually extended
till 25th November 2023.
WP.70-2024
5. Though the Respondents issued a corrigendum dated 11th
November 2023 incorporating some revised clauses, the same
did not satisfy the concerns and objections raised by members
of the Petitioner Association. Vide corrigendum dated 17th
November 2023, the deadline for submitting the tender was
extended to 25th November 2023. The Petitioner tried to justify
its stand by giving a comparative chart showing the salient
features therein. Learned counsel for the Petitioner relied upon
the following chart to indicate the drastic difference between
the earlier tender and the new tender as well as the
demand/requirement of the Petitioner. The chart is as under :-
OLD TENDER NEW TENDER Demand/Requirement
of the Petitioner
Minimum working Not discussed nd Minimum working was
and cost was floated the tender given in writing on
discussed, taken 4/12/23 but not
in writing from the considered in the
Transporters and tender and forcefully
the rates were called for submission
finalized on 9/12/23
accordingly
1.MS normal tank 1.MS & SS tank of Ready to fulfill subject
of 24KL 29KL with bottom to increase in price to
loading facility and Rs.3.19 RTKM (rate
kit cost MS calculated on the basis
Rs.7,00,000 & SS of increase in cost)
Rs.14,00,000 extra
2.BANK 2.BANK It should be like same
GUARANTEE GUARANTEE as existing tender
WP.70-2024
Rs.1,00,000 per Minimum and
tanker & maximum is
Rs.5,00,000 Rs.20,00,000
maximum
4.TOLL 4.TOLL Should be reimbursed
It was not No reimbursement (in accordance to
reimbursed POL/ATF tenders),
because toll is
increasing day by day
and tender is valid for 5
years.
6.PRODUCT 6.PRODUCT Insurance is the
INSURANCE INSURANCE responsibility of
It was not insured No insurance consignor and
by BPCL consignee not of
transporter. (Because
the consignment value
is more than Rs.30
Lakhs)
7.RTKM 7.RTKM It should be taken as
It was almost Not correct per vehicle odometer
correct reading and not by
google/VTS it always
shows shortest route
which travel through
cities and small roads
where HCV vehicles are
not allowed. VTS also
doesn't work at places
with no network (to be
checked physically)
6. Learned counsel for the Petitioner submits that the action
on the part of the Respondents in altering the terms and
conditions in the present tender vis-à-vis the earlier tender/s is
WP.70-2024
illegal and the same is made unilaterally without taking into
consideration the financial capacity of the bidders who have
been providing their services to the Respondents since last 45
years. Learned counsel submitted that by introducing such
impractical changes in the new tender, BPCL is heavily
burdening the members of the Petitioner, both financially and
physically. It is submitted that there is no satisfactory
justification for imposing such stringent clauses in the new
tender. It is further submitted that prior to issuance and
incorporation of new stringent terms and conditions, BPCL
ought to have made a comparative study or analysis of the
financial implications that would be caused to the members of
the Petitioner Association. It is further submitted that awarding
of letter of intent to Respondent Nos.10 to 36 is in gross
violation of the principle of natural justice and fair play and
there is a deliberate attempt of pick and choose being made to
deprive the members of the Petitioner from participating
despite they having extended their services diligently. Though
the members of the Petitioner had participated in the bid under
challenge, but had not received any communication from BPCL
thereby illustrating reasons for rejecting their respective bid.
WP.70-2024
Learned counsel submitted that entire decision making process
is arbitrary and without any justification and hence illegal.
7. Mr Nikhil Sakhardande, learned Senior Advocate for BPCL
opposed the Petition. Our attention is invited to the affidavit in
reply filed on behalf of BPCL. It is submitted that there is no
vested right created in favour of the members of the Petitioner
Association and they are not precluded from participating in the
tender process. It is submitted that the decision making
process is fair and transparent and cannot be said to be
arbitrary.
8. Heard learned counsel.
9. For bulk transportation of special petroleum products,
which are subject matter of the tender, BPCL has been awarding
contracts to eligible agency/s after inviting tenders for past
several years. Prior to the issuance of the impugned tender, a
tender was issued in the year 2016. The period of contract was
five years. The said tender was extended from time to time
which was valid up to 30th June 2024. The earlier tender was
invited under two bid system for transporting the petroleum
products in tank lorries. The general as well as technical terms
WP.70-2024
and conditions of the said tender were set out in the earlier
tender. The terms and conditions are set out in the earlier
tender were based on the industry practice and other
requirements in the year 2016.
10. In the year 2023, BPCL decided to float the tender inviting
bids for award of contracts for bulk transportation of special
petroleum products by bottom loading of tank lorries from its
Mumbai refinery for delivery to its various locations and
customers. The said requirement of inviting tenders for
transportation of special petroleum products by bottom loading
tank lorries was introduced by Respondent No.1 impleads of
and instead of top loading tank lorries in compliance of the
directives given by the Maharashtra Pollution Control Board
(MPCB). Accordingly, a notice inviting tender ("NIT" for short)
was issued on 26th October 2023. The copy of the MPCB
direction dated 3rd February 2021 is placed on record. The NIT
contains various terms and conditions such as EMD, security
deposit, qualification criteria, age of tank lorry, initial emission
norm, standard size of tank lorry, benchmark rates etc. The NIT
also contains relevant oil industry transport discipline
guidelines for transport of bulk petroleum products by road.
WP.70-2024
The terms and conditions set out in the said tender are
incorporated by taking into account the business exigencies and
dynamic nature of the industry. This incorporation according to
BPCL aims to address evolving market conditions and
requirements of the Respondent. In accordance with the terms
of the said tender, a pre-bid meeting was held on 2nd November
2023 with the bidders/prospective bidders to explain salient
features of said tender, e-tendering process and to provide
necessary clarifications if any required. The pre-bid meeting
was attended by the prospective bidders including members of
the Petitioner. The grievances raised by the prospective bidders
in the pre-bid meeting including those of the members of the
Petitioner Association by addressing wherever feasible, by
revising/incorporating tender clauses in corrigendum dated 11th
November 2023. The deadline for submission of the bid was
twice extended.
11. As against the requirement of 125 number of tank lorries,
BPCL received bids offering lorry tanks much more than 125 in
numbers. After receiving the bids from the interested parties,
BPCL verified the completeness of the bid documents and
thereafter the technical bid evaluation has been carried out
WP.70-2024
which includes the technical aspects of the bid, including the
suitability of the transport vehicle i.e. tank lorry as specified in
the said tender. The price bids have been opened and all
formalities have been duly finalised. The Letter of Intent was
issued upon completion of the scrutiny by BPCL's evaluation
committee.
12. To meet the allegations that the certain terms and
conditions in the said tender are stringent and not suitable to
the members of the Petitioner Association, BPCL submitted that
the clauses had to be incorporated considering the industry
practice, business exigencies and market dynamics. In the
affidavit-in-reply, BPCL says that for a comprehensive
understanding of the clauses outlined in the tender and the
rationale behind incorporating such clauses is set out in a chart
which reads thus :-
Clause Description Reasoning
Minimum Working and Respondent no.1 has already
Cost established the process of assessment
of likely cost incurred which is being
followed to workout Bench Mark Rates
(BMR) of all transportation tenders
and thus not obliged to depend on the
consent/validation of any of the
existing transporter and/or its
association. But despite above, as a
WP.70-2024
goodwill gesture, entertaining the
request of Petitioner, inputs were
sought from the representative of
Petitioner for reference. Considering
all their validated inputs, the rates
were reviewed internally and the BMR
rates were found to be falling within
the price band given in the said Tender
(i.e., lower price band & upper price
band).
MS & SS tank of 29KL Due consideration on account of
with bottom loading bottom loading related costs have
subject to increase in already been factored while working
price to Rs.3.19 RTKM out the BMR. The price/rates sought
i.e. Rs.3.19/- was found to be
enormously high.
Bank Guarantee Bank Guarantee is the security
Minimum and deposit and purpose is already spelt
Maximum is out in clause no. 7.6 tender document
Rs.20,00,000/- and the same is subject to review
from time to time. Bank Guarantee for
transportation of all I&C products on
delivery assistance basis was revised
to Rs.20,00,000/- per contract w.e.f.
September 2021 & became applicable
for all of I&C transportation contracts
published thereafter.
Payment of Toll It was clarified during the pre-bid
meeting that toll charges would be
reviewed whenever a new toll plaza is
added or there is a change in toll
charges or an existing toll plaza is
removed. Such changes however
would be subject to validation/proofs
and said tender already have
provisions that Any changes in
enroute toll charges will be
appropriately factored &
paid/recovered.
WP.70-2024
Product Insurance Product transferred into tank lorry will
be in the custody of transporter till
such time it is delivered to the
destination. So, the product
responsibility lies with the transporter
and hence the insurance required to
continue be obtained by transporters
as per already prevailing tender terms
& conditions.
Extension of timelines The Tender has been extended three
times considering concerns &
grievances of transporters, however
considering business exigencies
further extension was not possible
and hence bidders were requested to
submit the bids by 09.12.2023.
13. We do not find any illegality or arbitrariness in the terms
and conditions incorporated by BPCL in the NIT. Merely because
the terms and conditions in the NIT are stringent is no ground
to interfere in the tender process if otherwise we are satisfied
that the decision has been taken by BPCL considering the
market dynamics, business exigencies and other industrial
requirement. It is well settled that Respondent-BPCL being the
author of the said tender is the best person to understand and
appreciate its requirements. The members of the Petitioner
Association having participated and executed the contract for
the past 45 years does not confer any vested right in them to
insist that the terms and conditions in the NIT should be made
WP.70-2024
to suit their convenience. The members of the Petitioner
Association are not prohibited from participating in the bidding
process. In fact, BPCL took the views of the bidders into
consideration and addressed their concerns wherever it was
feasible. The deadline for submitting the bids was also extended
from time to time acceding to the request of the prospective
bidders which included the members of the Petitioner
Association. Against the requirement of 125 number of tank
lorries, BPCL received bids offering lorry tanks much more than
125 in numbers. The Letter of Intent has been issued on
completion of the scrutiny in favour of the successful bidders.
We therefore do not find any merit in this Writ Petition.
14. The Writ Petition is dismissed with no order as to cost.
(M. S. KARNIK, J.) (CHIEF JUSTICE)
Signed by: Pradnya Bhogale
Designation: PA To Honourable Judge
