Tender – Gas Cylinder Rules, 2016 – Dilution of Technical conditions of PESO Registration & certificate affecting public safety and health – Supply of Chlorine Gas to the City of Mumbai
On 10.3.2023, the Respondent no.3 Corporation floated the first tender. The original requirement of a liquid chlorine storage plant within the periphery of 150 kms beyond the boundary of Mumbai City and PESO Registration certificate. However, in the pre-bid meeting the respondent no.4 objected to the said condition and such a condition was not necessary. The said objection was rejected on the ground that it is required by the Gas Cylinder Rules, 2016. However, the said tender was withdrawn.
On 19.7.2023, tender with identical terms was issued.
The Corrigendum dated 11.8.2023 by which the condition no.6 (Section 10 of the tender dated 19.7.2023) was altered / modified for supply of liquid chlroine gas for water treatment plans and reservoirs of the Respondent no.2 Corporation.
On 24.8.2023, the petitioner objected the impugned corrigendum on the ground that it was contrary to the Gas Cylinder Rules, 2016.
On 4.10.2023, the financial bid was opened and the respondent no.5 was declared L-1. On 24.11.2023, formal work order was issued.
HELD that the questions for consideration were – whether supply of LCG is separate from “transport” of LCG and secondly, the supplier would require to have to PESO registration and certificate. The conditions of tender clearly show supply and transportation separately, supplier to take all necessary precaution during all operation till delivery. The supplier shall be responsible for any loss, damage, injury, etc. The Gas Cylinder Rules, 2016, framed under Section 5 of the Explosives Act, 1884, regulate the liquified chlorine compressed in cylinders. Rule 10 of the Rules is clear that the manufacturers are not permitted to dispatch cylinders except to licence holders and/or authorised agents. However, the requirement for valid Registration and Certificate of Petroleum and Explosion Safety Organisation (PESO) was relaxed. Thus, the bidders were not mere transporters of filled gas cylinders but several obligations were on them. The Corporation overlooked very important aspect of public health and safety by modifying the original tender condition.
The petitioner who participated in the tender process can subsequently file writ petition and challenge the legality of tender condition on the ground of violation of law or legal requirement.
Judgment dated 2.4.2024 in W.P.(L) No.29179 of 2023 of G.S.Commercial Corporation Vs. State of Maharashtra and others
