The petitioners, Shimmit Utsch India Private Limited, contended that the transport commissioner had invited tenders to supply high security registration plates for vehicles on August 25, 2005 to prevent anti-social elements and terrorists from using vehicles.
The high court on Tuesday issued notices to the principal secretary, state transport department, in a case questioning the cancellation of the contract issued to a Mumbai-based firm for the supply of high security registration plates to Karnataka.
The petitioners, Shimmit Utsch India Private Limited, contended that the transport commissioner had invited tenders to supply high security registration plates for vehicles on August 25, 2005 to prevent anti-social elements and terrorists from using vehicles. The contract for supplying the plates was awarded to the petitioners on January 19, 2006.
However, the transport department subsequently cancelled the contract after it found that the petitioners were indulging in suspicious activities and charging Karnataka three times the price at which the plates were supplied to the West Bengal government.
The petitioners then filed a writ petition in the high court, and the judge held that there is an alternative mechanism to settle such disputes. The case was thus put off to April 18.
The petitioners contended that the contract issued to them was a statutory contract, and not a commercial one, meaning that the contract is governed by statutes, and is not purely commercial, and therefore, the disputes cannot be settled by the appellate authority. They have questioned the order in the high court.
The division bench comprising justices K Bhaktavatsala and B Manohar admitted the petition and issued notices to the principal secretary.
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