Kerala High Court
Kairali Labour Contract ... vs The State Of Kerala on 13 April, 2022
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 13TH DAY OF APRIL 2022/23RD CHAITHRA, 1944
WP(C) NO. 26852 OF 2021
PETITIONER:
KADATHANAD LABOUR CONTRACT CO-OPERATIVE SOCIETY
LIMITED
REPRESENTED BY ITS SECRETARY, NUT STREET,
VATAKARA, KOZHIKODE - 673 104.
BY ADVS.
M.A.AUGUSTINE
A.R.NIMOD
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY CHIEF SECRETARY, GOVERNMENT OF
KERALA, SECRETARIAT,
THIRUVANANTHAPURAM - 695 001.
2 THE KERALA PUBLIC WORKS DEPARTMENT
REPRESENTED BY SECRETARY, PUBLIC OFFICE
COMPLEX, MUSEUM P.O.,
THIRUVANANTHAPURAM - 695 033.
3 FINANCE DEPARTMENT
GOVERNMENT OF KERALA, REPRESENTED BY ITS
SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM,
KERALA - 695 001.
4 INFORMATION TECHNOLOGY DEPARTMENT
GOVERNMENT OF KERALA, REPRESENTED BY ITS
SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM,
KERALA - 695 001.
5 THE CHIEF ENGINEER
KERALA PUBLIC WORKS DEPARTMENT, PUBLIC OFFICE
COMPLEX, MUSEUM P.O., THIRUVANANTHAPURAM - 695
033.
W.P.(C) No.26852/2021 & Connected Cases
:2:
SRI.K.V.MANOJKUMAR, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 13.04.2022, ALONG WITH WP(C).27136/2021,
27534/2021, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C) No.26852/2021 & Connected Cases
:3:
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 13TH DAY OF APRIL 2022/23RD CHAITHRA, 1944
WP(C) NO. 27136 OF 2021
PETITIONER:
NELLIKKAPARAMBA LABOUR CONTRACT CO-OPERATIVE
SOCIETY LIMITED
REPRESENTED BY ITS SECRETARY, P.O.
NELLIKKAPARAMBA, MUKKOM, KOZHIKODE-673 602.
BY ADVS.
A.R.NIMOD
M.A.AUGUSTINE
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY CHIEF SECRETARY, GOVERNMENT OF
KERALA, SECRETARIAT,
THIRUVANANTHAPURAM-695 001.
2 THE KERALA PUBLIC WORKS DEPARTMENT
REPRESENTED BY SECRETARY, PUBLIC OFFICE
COMPLEX, MUSEUM P.O.,
THIRUVANANTHAPURAM-695 033.
3 FINANCE DEPARTMENT
GOVERNMENT OF KERALA, REPRESENTED BY ITS
SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM,
KERALA, 695 001.
4 INFORMATION TECHNOLOGY DEPARTMENT
GOVERNMENT OF KERALA, REPRESENTED BY ITS
SECRETARY, SECRETARIAT, THIRUVANANTHAPURAM,
KERALA, 695 001.
W.P.(C) No.26852/2021 & Connected Cases
:4:
5 THE CHIEF ENGINEER
KERALA PUBLIC WORKS DEPARTMENT, PUBLIC OFFICE
COMPLEX, MUSEUM P.O.,
THIRUVANANTHAPURAM-695 033.
BY SRI.K.V.MANOJKUMAR, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 13.04.2022, ALONG WITH WP(C).26852/2021 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C) No.26852/2021 & Connected Cases
:5:
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 13TH DAY OF APRIL 2022/23RD CHAITHRA, 1944
WP(C) NO. 27534 OF 2021
PETITIONER:
KAIRALI LABOUR CONTRACT CO-OPERATIVE SOCIETY
LTD A-1236,
MANKANKUZHY, MANKANKUZHY P.O., MAVELIKKARA,
ALAPPUZHA DISTRICT, REPRESENTED BY ITS
PRESIDENT K. SASI.
BY ADV K.N.RADHAKRISHNAN(THIRUVALLA)
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY THE SECRETARY TO THE GOVERNMENT,
DEPARTMENT OF CO OPERATION, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM 695 001.
2 THE SECRETARY TO THE GOVERNMENT,
LOCAL SELF GOVERNMENT DEPARTMENT, GOVERNMENT
SECRETARIAT, THIRUVANANTHAPURAM 695 001.
3 ASSISTANT ENGINEER,
THE VENMONY GRAMA PANCHAYATH VENMONY P.O.,
ALAPPUZHA DISTRICT 689 509.
4 THE VENMONY GRAMA PANCHAYAT,
VENMONY P.O., ALAPPUZHA DISTRICT , REPRESENTED
BY SECRETARY 689 509.
BY ADV MANOJ RAMASWAMY
SRI.K.V.MANOJKUMAR, SR.GP
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 13.04.2022, ALONG WITH WP(C).26852/2021 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
W.P.(C) No.26852/2021 & Connected Cases
:6:
N. NAGARESH, J.
`````````````````````````````````````````````````````````````
W.P.(C) Nos.26852, 27136 and 27534 of 2021
`````````````````````````````````````````````````````````````
Dated this the 13th day of April, 2022
JUDGMENT
~~~~~~~~~
The petitioners are aggrieved by the shortsighted
implementation of the online portal dealing with the
registration/renewal of licences issued to the PWD
Contractors, due to which the petitioners who are Labour
Contract Co-operative Societies are unable to renew their
licences, which in turn prevent the petitioners from
participating in tender processes.
2. The petitioners state that they are registered
Co-operative Societies undertaking civil contract works. The
petitioners are licensed contractors of the Public Works
Department (PWD). The registrations granted by the PWD
are expiring/ have expired.
W.P.(C) No.26852/2021 & Connected Cases
3. In the year 2021, the Government of Kerala
developed a new online portal with an intention
to consolidate creation, renewal of licences and
awarding of contracts. The site is named
http://contractors.kerala.gov.in/contracto r portal. The process
of renewal of licence is migrated to the online portal, for all
renewals from March, 2021. The contract tendering process
for PWD works were also moved to the new portal.
4. Logins are created on the portal based on PAN
Card of user. The contractors have to create login as per
their status. In the portal, though there are options to create
login for "Individual", "Firm", "HUF", "Association of Persons"
and "Body of Individuals", there is no option to create login as
a Co-operative Society. The option "Firm" only has
"Company", "Partnership" and "Proprietorship" as sub
options. There is no option for "Co-operative Society". As
there is no option for Co-operative Societies, the petitioners
had to create login as an "Association of Persons".
W.P.(C) No.26852/2021 & Connected Cases
5. The petitioners state that Co-operative Societies
are granted certain benefits in the matter of Government
Contracts. When the petitioners tried to register for civil
works in the portal, the portal reported error saying that the
petitioners are not eligible. In the circumstances, the
petitioners preferred complaints pointing out the flaw and
need for correcting the same. The petitioners are effectively
disabled from participating in government contracts. The
petitioners therefore prayed that the respondents be directed
to allow petitioner-Societies to participate in tender process
dehors renewed licence until online portal is capable of
accepting "Co-operative Society" as an applicant type.
6. The Kerala Public Works Department resisted the
writ petitions filing a statement in W.P.(C) No.27136/2021.
The PWD stated that benefits if any conferred to the Labour
Contract Societies are based on Government Orders issued
by the Co-operative Department. The registration of Labour
Contract Co-operative Societies and its classifications are
also governed by orders issued by the Co-operative
W.P.(C) No.26852/2021 & Connected Cases
Department.
7. On the basis of registration certificates issued by
the Co-operative Department, Labour Contract Co-operative
Societies (LCCS) can submit bids. The LCCS must have
valid registration certificates issued by the Department of
Co-operation. As per Clause 1913 of the PWD Manual, the
Rules for registration of PWD Contractors will not apply for
the registration of LCCS, BSS, Kerala State Construction
Corporation and other workers bodies which are governed by
separate Government Orders. Hence, no provision is
included in PRICE Software for renewing licence of LCCS.
The issue of including LCCS in PWD works and the PRICE
Software is under examination.
8. I have heard the learned counsel for the
petitioners and the learned Senior Government Pleader
representing the respondents.
9. The grievance of the petitioners is that as the
category "Co-operative Societies" is not included in the
PRICE portal through which PWD contracts are tendered
W.P.(C) No.26852/2021 & Connected Cases
and through which issuance and renewal of PWD
Contractors Licence are made. The petitioners who are
Labour Contract Co-operative Societies are effectively
precluded from renewing their licences and participating in
government tenders. In the PRICE portal as it exists now,
the applicant type has the options "Individual", "Firm", "HUF",
"Association of Persons" and "Body of Individuals". The
option "Firm" only has "Company", "Partnership" and
"Proprietorship" as sub-options. There is option for Co-
operative Societies.
10. The Government of Kerala is giving price
preference to Labour Contract Co-operative Societies in all
public works. The approved Labour Contract Societies,
depending upon the class of registration, participating in the
tenders floated by the Government, are eligible for a price
preference up to 10% over the quoted amount of the lowest
bidder in the matter of deciding the successful lowest bidder.
This is evident from GO(Ms) No.41/2020/PWD dated
19.03.2020. When the Government is consciously
W.P.(C) No.26852/2021 & Connected Cases
preferring Co-operative Societies in the matter of public
works, the respondents will not be justified in creating
hurdles for the LCCS in the matter of renewal of licence and
award of tenders.
11. The issue is a clear instance of digital
discrimination which would indeed violate Article 14 of the
Constitution of India. Labour Contract Co-operative
Societies which are entitled to encouragement and protection
under the extant Government Orders. Co-operative
Societies are recognised under Part IX-B of the Constitution
of India and cannot be made to suffer due to the omission of
the respondents in creating appropriate option types in the
PRICE portal.
12. In fact, this Court has considered the issue of non-
renewal of registration of LCCS in view of the faulty
formulation of online portal, in W.P.(C) No.7750/2021. The
writ petition was disposed of by a learned Single Judge of
this Court on 26.03.2021 directing the Chief Engineer (PWD)
to take emergent action in the matter.
W.P.(C) No.26852/2021 & Connected Cases
In the facts and circumstances of the case, the
writ petitions are disposed of directing the competent among
the respondents to take immediate steps to add
"Co-operative Society" as an applicant type in the online
portal, within a period of two months. There will be a further
direction to the 2nd respondent to allow the petitioner-
Societies to participate in tender processes dehors renewed
licence until online portal is made capable of accepting
"Co-operative Society" as an applicant type.
Sd/-
N. NAGARESH, JUDGE
aks/13.04.2022
W.P.(C) No.26852/2021 & Connected Cases
APPENDIX OF WP(C) 26852/2021
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE PAN CARD ISSUED TO
THE SOCIETY NUMBERED AACAK7778A.
Exhibit P2 TRUE COPY OF THE REGISTRATION CARD
DATED 30/08/2015.
Exhibit P3' TRUE SCREEN SHOT OF THE PORTAL WEBPAGE
FOR CREATING LOGIN ACCESSED ON
24/11/2021.
Exhibit P4 TRUE COPY OF CIRCULAR DATED
19/03/2020.
Exhibit P5 TRUE COPY OF THE JUDGMENT IN WP(C)
NO.7750/2021 DATED 26/03/2021.
Exhibit P6 TRUE COPY OF CONTRACT LETTER
NO.AE/LSGD/AGP/2022 DATED 22/06/2021.
P8 COPY OF GO DT 28.12.21
W.P.(C) No.26852/2021 & Connected Cases
APPENDIX OF WP(C) 27136/2021
PETITIONER EXHIBITS
Exhibit P1 TRUE COPY OF THE PAN CARD ISSUED TO
THE SOCIETY NUMBERED AADAN1426H.
Exhibit P2 TRUE COPY OF THE CONTRACTOR
REGISTRATION CARD DATED 14.2.2017.
Exhibit P3 TRUE SCREEN SHOT OF THE PORTAL WEBPAGE
FOR CREATING LOGIN ACCESSED ON
24.11.2021.
Exhibit P4 PRINT OUT OF THE PORTAL WEB PAGE
SHOWING THE STATUS OF THE PETITIONER.
Exhibit P5 TRUE COPY OF CIRCULAR DATED 19.3.2020.
Exhibit P6 PRINT OUT OF THE WEBPAGE OF PORTAL
SHOWING ERROR WHEN REGISTERING FOR
CIVIL WORKS.
Exhibit P7 TRUE COPY OF THE JUDGMENT IN WPC
NO.7750/2021 DATED 26.3.2021.
P8 COPY OF GO DT 27.12.2019
P9 COPY OF LETTER OF ACCEPTANCE DT
24.8.21
P10 COPY OF SITE HANDOVER DT 1.9.21
P11 COPY OF GO DT 27.1.21
P12 COPY OF CIRCULAR DT 8.12.21
P13 COPY OF GO DT 19.2.22
W.P.(C) No.26852/2021 & Connected Cases
APPENDIX OF WP(C) 27534/2021
PETITIONER EXHIBITS
Exhibit P1 THE REGISTRATION CERTIFICATE ISSUED BY
THE JOINT REGISTRATION OF CO OPERATIVE
SOCIETIES (GENERAL), ALAPPUZHA DATED
19.02.2021.
Exhibit P2 THE COPY OF CERTIFICATE DATED
28.07.2021 ISSUED BY THE JOINT
REGISTRAR OF COOPERATIVE SOCIETIES
(GENERAL), ALAPPUZHA DATED 28.07.2021.
Exhibit P3 THE COPY OF G.O.(MS) 2780/2017/CO OP
DATED 11.08.2017 OF THE LOCAL SELF
GOVERNMENT DEPARTMENT.
Exhibit P4 THE COPY OF G.O. (OR) NO 3630/2017
DATED 10.11.2017.
Exhibit P5 THE COPY OF COMMUNICATION ISSUED BY
THE THIRD RESPONDENT REJECTING THE
TENDERS SUBMITTED BY THE PETITIONER
DATED 20.09.2021.
Exhibit P6 THE RELEVANT PAGE OF PWD MANUEL
REVISED EDITION 201.
