Mumbai: The Bombay high court has quashed and set aside a Jan 2010 order of the State Minorities Commission that cancelled Maharashtra State Road Transport Corporation‘s (MSRTC’s) tender process and directed criminal investigation. “It is declared that the Minorities Commission does not possess adjudicatory power akin to a court or tribunal. It has no explicit authority to cancel contracts, annul tenders, or direct criminal investigations by specialised agencies,” said Justice Amit Borkar on Feb 5.Following complaints, the commission, in Dec 2010, cancelled MSRTC’s tender process, directed an investigation by the crime branch into all its tenders. MSRTC moved HC contending that the commission exceeded jurisdiction under the Maharashtra State Minorities Commission Act. In 2012, HC directed a blanket stay on the commission’s order.
Justice Borkar said cancellation of a tender process has civil consequences, affects contractual rights, and interferes with executive functions. A direction to the crime branch to conduct an inquiry “carries even more serious implications” and “may expose officers to criminal scrutiny”.The judge said a plain reading of Section 10 of the Act, which deals with the functions of the commission, shows that the legislature used the word “functions” and not “powers” of adjudication or enforcement. “The distinction is important. A body may be entrusted with duties of examination, recommendation, monitoring, and reporting. That does not automatically mean that it can pass binding or coercive orders affecting legal rights,” Justice Borkar explained.Even if the commission’s intention was to protect minority rights, “good intention cannot enlarge statutory boundaries”, said Justice Borkar, adding: “Public bodies must act within the four corners of the law.” He said cancellation of a tender affects contractual rights and impacts bidders. “Such power must be specifically conferred. It cannot be assumed.” The judge said the commission plays a vital role in safeguarding rights of minorities; it can examine complaints, call for information, recommend corrective measures, and bring deficiencies to the govt’s notice. “These are significant functions. However, they remain advisory and supervisory in nature. They do not convert the commission into an adjudicatory forum,” he added. By cancelling the tender and directing criminal inquiry, “the commission assumed powers akin to those of a court or an investigating agency”. “The Act does not confer such powers. The impugned order therefore travels beyond the limits of Section 10… cannot be sustained,” Justice Borkar concluded.
