Eldyne Electro Systems Private ... vs Union Of India & Ors
2021 Latest Caselaw 4385 Cal

24.08.2021.
Item No. 134.
Court No.13
   ap                        W.P.A. No. 13026 of 2021
                           (Through Video Conference)
                Eldyne Electro Systems Private Limited & Anr.
                                   Versus
                            Union of India & Ors.

                   Mr.   Anindya Kumar Mitra, ld. Sr. Advocate,
                   Mr.   Abhrajit Mitra,
                   Mr.   Jishnu Chowdhury,
                   Mr.   Soumya Ray Chowdhury,
                   Mr.   Arnab Sardar,
                   Mr.   Anurag Sardar.
                                                ..For the petitioners.
                   Mr. Deepak Kumar Singh,
                   Ms. Saptamita Pramanick.
                                           ...For the respondents.

Affidavit-of-service filed in Court today be taken

on record.

The writ petitioners are primarily aggrieved by

an order dated 17th August, 2021 passed by the

Executive Director/Signal-I RDSO, Lucknow,

temporarily delisting the writ petitioner no.1 as an

approved vendor, for both Multi Section Digital Axle

Counter and Single Section Digital Axle Counter.

The writ petitioner no.1 was the approved

vendor of the Railways for the aforesaid two

components since the year 1999.

Pursuant to a show-cause notice dated 21st

April, 2021, the writ petitioner no.1 was asked to

explain the relationship with their original equipment

manufacturer one M/s. Thales Transportation

Systems, GmbH of Germany.

It was further stipulated that in the absence of

satisfactory reply, the petitioner no.1 would be

removed from the list of approved suppliers.

The writ petitioners replied vide communication

dated 21st May, 2021. The original equipment

manufacturer, M/s. Thales confirmed and reiterated

their continuing relationship of supply, design and

technology transfer with the writ petitioners of the

aforesaid two components.

The writ petitioners challenged the show-cause

before this Court in W.P.A. No. 12476 of 2021. By an

order dated 13th August, 2021, the Court dismissed

the writ application on the ground that it was

premature as no final order had been passed by the

RDSO Railways, at Lucknow.

On 17th August, 2021, the RDSO, Lucknow

(Railways) temporarily delisted the writ petitioner no.1

with the following order:-

"Competent authority has approved that M/s. Eldyne Electro Systems Pvt. Ltd., P-21, Old Ballygunge Road, Kolkata - 700 019 is temporarily delisted on account of their failure to establish clear-cut correlation of material outsource to Jabil Circuit India Private Limited Pune and material used in product MSDAC/SSDAC of M/s. Eldyne, Kolkata, from RDSO's "List of vendors for developmental orders" for both Multi Section Digital Axle Counter and Single Section Digital Axle Counter with

immediate effect till such time M/s. Eldyne submit documents, if any to prove the same. The firms can appeal to Spl. DG/VD within 60 days of communication of this order."

It prima facie appears to this Court that the

ground for temporary delistment of the petitioner no.1

i.e. the failure to establish correlation of material

outsource to one M/s. Jabil Circuit India Private

Limited, Pune was not the subject matter of the show-

cause notice, dated 21st April, 2021.

This Court had asked the writ petitioners to

explain as to why the territorial jurisdiction of the

Calcutta High Court has been invoked when the

impugned order and all communications leading to the

impugned order was issued by the RDSO at Lucknow.

Mr. Anindya Kumar Mitra, learned Senior

Advocate has relied upon judgments of this Court,

Madras High Court and the Hon'ble Supreme Court of

India. They are Community Action for Rural

Development Vs. Secretary, Ministry of Women

reported in 2015-3-LW 90 (SB) Madras, Panwar Vs.

Lalit Kala Accademy reported in AIR 2011 Cal 167,

SAC Allied Products Vs. Commissioner of Central

SCC 159.

This Court has considered the decision of

Alchemist Vs. State Bank of Sikkim reported in AIR

2007 SC 1812.

It is submitted by Mr. Mitra for the petitioners that

there is a tender floated by the Railways of a

substantial value of about Rs.60 crores. He further

submits that the last date for submission of the bid is

25th August, 2021 i.e. tomorrow.

Mr. Deepak Kumar Singh, learned Counsel for

the respondents, seeks time to consider the judgments

and cite other judgments of this Court and the Hon'ble

Supreme Court of India to argue that this writ petition

should not be entertained in the first place for want of

territorial jurisdiction.

Since the writ petition is being considered for

admission and serious prejudice may be caused to the

writ petitioners, in the event, the writ petition is

admitted, this Court permits the writ petitioners to put

in a bid in response to the aforesaid tender.

The continued participation of the petitioner in

the said tender process shall be subject to any order

that may be passed in the instant writ application.

Let this matter stand adjourned and be listed on

31st August, 2021 at 2:00 P.M. as a Specially Fixed

Matter.

All parties are directed to act on a server copy of

this order duly downloaded from the official website of

this Court.

(Rajasekhar Mantha, J.)