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Capt. S. Ramesh And Others v. Union Of India And Others

Calcutta High Court
Feb 10, 2020
Smart Summary (Beta)

Judgment Summary — Samapti Chatterjee, J.

Factual and Procedural Background

The petitioners are residents of Port Blair who served as roster crew for the Andaman & Nicobar Administration's foreshore vessels and later obtained Navigational Watch Keeping Certificate (NCV) qualifying them as certified officers. They claimed entitlement to be included in rosters and to be allocated work on these vessels. The petitioners challenged several notices dated 3 August 2010, 19 August 2010 and 2 December 2010 and sought preparation of a roster for Navigational Watch Keeping Officers (NCV). A writ petition was disposed of on 3 February 2012 directing the Administration and the Director General of Shipping to sympathetically consider their cases and roster them if permissible under the Merchant Shipping Act, 1958 or other applicable directives, and to refrain from disturbing their present roster positions pending decision.

The Administration rejected the petitioners' claim for a separate NCV roster by an order dated 29 June 2012 (as stated in the opinion). The petitioners challenged that rejection in WP No. 520 of 2012. While that matter was pending, the Lieutenant Governor (LG) directed the Director of Shipping Services to employ the writ petitioners directly, without outsourcing. Based on the LG's decision published in a press note dated 28 May 2014 and related orders, the writ petition was disposed of as infructuous on 30 June 2014.

Despite the LG direction, the Administration later issued a letter (24 January 2017) stating the LG's decision had been reviewed and the Administration decided to continue outsourcing manning to a private body. The petitioners challenged the Administration's modification of tender terms that could permit mainland candidates to be employed by the contractor M/s ABS Marine, filing WP No. 25683 (W) of 2017; that petition was disposed of on 14 December 2017 with an observation that replacement of clause 2.6 was illegal and liberty was granted to file afresh on the same cause of action.

Legal Issues Presented

  1. Whether the respondent authorities are obligated to implement the Lieutenant Governor's decision published on 28 May 2014 (to man the foreshore vessels in-house) and not revert to outsourcing.
  2. Whether the Administration's decision dated 24 January 2017 (stating the LG's decision had been reviewed and continuing outsourcing) and related acts modifying tender terms were illegal and arbitrary.
  3. Whether the department can lawfully continue the outsourcing contract with M/s ABS Marine Services Pvt. Ltd. beyond the extended contractual period, and whether that contract should be terminated or replaced by in-house engagement.
  4. Whether direct in-house manning is practically feasible given alleged availability or non-availability of qualified local senior officers (Master, Chief Officer, Chief Engineer and Second Engineer) and, if not available, whether outsourcing for particular posts is permissible.

Arguments of the Parties

Petitioners' Arguments (as advanced by Mrs. Nag)

  • The petitioners are local residents listed on the Directorate roster who later obtained NCV certificates and thereby became certified officers entitled to roster inclusion and allocations.
  • The Lieutenant Governor's decision published on 28 May 2014 directed in-house direct engagement of the petitioners; respondent authorities are under obligation to comply with that direction.
  • The Administration's subsequent decision of 24 January 2017 reviewing the LG decision is wholly illegal and arbitrary.
  • There are sufficient local applicants for several senior posts (e.g., numbers provided: 32 applicants for Master, 24 for Chief Officer, 23 for Chief Engineer, 42 for Second Engineer) and, according to the NMB agreement requirement (140% of posts), the in-house candidate pool meets or roughly meets the required threshold for many posts, removing the need for outsourcing for such ranks.
  • The petitioners, as islanders and permanent residents, would be jeopardised if outsourcing continues, and they should be engaged directly without outsourcing.

Respondent Authorities' Arguments (as advanced by Mr. Rao)

  • The Lieutenant Governor's earlier direction of 28 May 2014 was reviewed on 3 November 2016, and the Administration concluded that in-house manning may not be practical for senior ranks because adequate numbers of senior officers (Master, Chief Officer, Chief Engineer and Second Engineer) were not available locally and would have to be engaged from the mainland.
  • The Directorate of Shipping Services (DSS) reported that while junior officers (2nd Officer, 3rd Engineer) are available locally in adequate numbers, senior officers were inadequate locally; engaging mainland officers would impose logistical and financial difficulties (advance booking of air tickets, hotel accommodation, etc.).
  • The DSS recommended continuation of outsourcing via competitive tendering (option (a)), or handing over manning to SCI, or extension of the existing contract with M/s AB Marine (option (c)). Option (a) was recommended and the existing contract's extension was approved on 29 October 2016.
  • Given the shortage of competent senior persons locally, in-house manning of foreshore vessels may not be practical; therefore adoption of outsourcing manning practice was proper and lawful.
  • Consequently, there is no merit in the present writ petition and it should be dismissed.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court summarized the procedural history: the petitioners repeatedly filed writ petitions seeking direct/in-house manning instead of outsourcing, relying on the LG's decision dated 28 May 2014 (published in "The Daily Telegrams"). The court noted that the LG's decision had later been reviewed and that the Deputy Secretary (Shipping) issued a letter on 24 January 2017 advancing suggestions/recommendations to continue outsourcing for practical reasons. The DSS's assessment recorded that junior ranks were available locally but senior ranks were inadequate locally, leading to recommendations that outsourcing be continued through competitive tendering or contract extension.

The court examined the administrative timeline and approvals: on 29 October 2016 option (a) (continuation of outsourcing) was recommended and approved, and an extension of the existing manning contract with M/s ABS Marine Services Pvt. Ltd., Chennai was authorized for one year in accordance with the contract clause; that extended period expired on 30 November 2016.

The court then considered the actual conduct of the department after the approved extension expired. It found that, despite the expiration, the department had allowed the manning contract to continue beyond the extended period. The court emphasized the practical consequences for the petitioners who had, in reliance on the LG's 28 May 2014 decision, allowed a pending writ to be withdrawn as infructuous.

Critically, the court also observed that the record contains material indicating that there are adequate numbers of local senior officers in the ranks of Master, Chief Officer, Chief Engineer and Second Engineer. Based on that recorded material, the court concluded that continued outsourcing at this stage was not required for those posts. The court therefore balanced the Administration's asserted practical difficulties against the factual record on availability of local candidates and the administrative history of directions and approvals.

Applying these findings, the court directed immediate action to implement the LG's earlier direction insofar as it required direct engagement of local candidates: it ordered the department to take steps, in accordance with law, for direct engagement from the in-house roster for junior level officers (Second Officer and Third Engineer) and senior level officers (Master, Chief Officer, Chief Engineer and Second Engineer) as per the LG's direction published on 28 May 2014. The court qualified this direction by permitting outsourcing for specific posts only if, after the prescribed process, it is found that sufficient local candidates with requisite qualifications are not available for those posts.

Holding and Implications

Holding — The writ petition is disposed of with directions. Specifically:

  • The court directed the concerned authorities/department to take immediate lawful steps to engage directly from in-house sources for the posts of Second Officer and Third Engineer (junior levels) and for the senior posts of Master, Chief Officer, Chief Engineer and Second Engineer, in accordance with the Lieutenant Governor's direction published on 28 May 2014, and to complete such steps positively within six weeks from the date of communication of the order.
  • The court qualified that if for any of the referred posts sufficient local candidates with requisite qualifications are not available, the department may then proceed to outsource for those specific posts.
  • The court quashed and set aside the order dated 29 June, 2014. The order dated 24 January, 2017 was quashed except insofar as it recorded the LG's approval of option (a) and the one-year extension of the existing manning contract that had been due to expire on 30 November 2016.
  • The writ petition was disposed of and there was no order as to costs.

Implications — The direct, immediate consequence is that the Administration must initiate steps to engage local candidates for the specified junior and senior posts within the six-week timeframe, subject to the limited exception permitting outsourcing only where local qualified candidates are demonstrably insufficient. The opinion does not state that it establishes any broader legal precedent beyond the resolution of these parties' disputes; it addresses implementation of administrative directions and the lawfulness of continuing outsourcing contracts in the particular administrative and factual context described.

This summary is based exclusively on the provided opinion text by Samapti Chatterjee, J. No additional sources were used.

Show all summary ...

Samapti Chatterjee, J.:— The petitioner has filed the present writ petition for direction upon the respondent authorities to implement the decision of the Lieutenant Governor published in the press note dated 28 May, 2014 read with order dated 26 May, 2014 issued by the Director of Shipping Services, Andaman & Nicobar Administration, Port Blair. Mrs. Nag, learned advocate appearing for the petitioners submits that petitioners are the residents of Port Blair who were serving as roster crew in the Administration to man various vessels in Andaman & Nicobar Islands. Their names are entered in the roster crew maintained by the Directorate of Shipping Services. All the petitioners have subsequently enhanced their qualification by obtaining Navigational Watch Keeping Certificate (NCV) and consequently have become certified officers. It is also submitted that petitioners also qualified for being treated as seaman and hence entitled to be in roster and allocated work on the vessels operating in these Islands. Assailing the notice dated 3 August, 2010, 19 August, 2010 and 2 December, 2010 passed by the respondent authorities and also claiming preparation of roster for the Navigational Watch Keeping Officers (NCV), petitioners filed a writ petition before this Hon'ble Court that writ petition was disposed of on 3 February, 2012 thereby, inter alia, directing the respondent authorities particularly the Administration as well as the Director General of Shipping Corporation to consider the petitioners case sympathetically and roster them if permissible under the Merchant Shipping Act, 1958 or any other directive or instruction of the Director General of Shipping after giving an opportunity of hearing to the petitioners and communicate the same to them within a specific period of time. Till such decision is taken respondent were prevented from disturbing the petitioners present position in the roster. Thereafter, on 29 June, 2012 the Andaman & Nicobar Administration passed an order rejecting the claim of the petitioner for preparation of separate roster for Navigational Watch Keeping Officer (NCV). Again challenging that rejection order dated 29 January, 2012 petitioners filed a writ petition before, this Hon'ble Court being WP No. 520 of 2012. Considering pendency of the said writ petition the Lieutenant Governor of these Islands directed the Director of Shipping Services to employ the writ petitioners directly without taking aid from outsourcing. While the said fact was brought to the notice of this Hon'ble Court the writ petition was disposed of as infructuous in view of the decision of the Lieutenant Governor Andaman & Nicobar Islands vide order dated 30 June, 2014. Accordingly, the authorities initiated the proceedings to employ the writ petitioners directly, to that effect letter dated 12 May, 2014 issued to the Deputy Director (Shipping) thereby explaining the manner in which the department has to undergo manning of the foreshore sector vessel in-house effort. Accordingly, a press note was also issued inviting candidate to submit their particulars to crew cell by 15 February, 2016. When it was noticed that the respondent authorities failed to take any steps to complete the said process for directly manning in-house candidates the petitioners without finding any alternative file an application under the Right to Information Act, 2005 to know the status of the said process. The authorities on 24 January, 2017 issued letter by stating, inter alia, that the decision of the Lieutenant Governor has been reviewed and the authorities have decided to continue the method of the outsourcing job to a private body. When the petitioners came to know that the authorities in order to deprive the petitioners from their present employment modified the terms of the tender to provide opportunity to the tenderer that is say M/s ABS Marine to employ man power from the candidates of mainland, challenging their illegal attempt to disobey the order of the Lieutenant Governor, petitioners again filed a writ petition being WP No. 25683 (W) of 2017. That writ petition was disposed of on 14 December, 2017 with the observation that the replacement of clause 2.6 of the earlier tender is illegal and not in accordance with the law. Since it is observed by the Hon'ble Court that the issued pertaining to preparation of the roster and the issue pressed by the writ petitioners are different, therefore, liberty was granted to the writ petitioners to file afresh writ petition on the self same cause of action.

2. Therefore, it is argued by Mrs. Nag that the decision of the authorities dated 24 January, 2017 is wholly illegal and arbitrary. When the Hon'ble Court disposed of the matter on 30 June, 2014 on the basis of the letter of Lieutenant Governor published on 28 May, 2014 in “The Daily Telegrams”, therefore, the respondent authorities are under obligation to comply with the direction of the Lieutenant Governor as issued on 28 May, 2014. To counter the press note dated 4 February, 2016 Mrs. Nag submits that the aspiring candidates obtain documents to show that 32 candidates have already complied for the post of Master, 24 for the Chief Officer and 23 for Chief Engineer and 42 for Second Engineer. As per the NMB agreement in order to maintain a roster the number of candidates should be 140% of the post. Here the post are 17 in numbers. 140% of 17 is 23.8. Data Shows that the number of candidate who have applied for the posts are more or less than 23.8. Therefore, there are sufficient candidates for the post of Master, Chief Officer and Second Engineer. Accordingly, Mrs. Nag further submits that there is no requirement for outsourcing as in-house candidates are sufficient in number as per requirement in respect of those posts. Accordingly, Mrs. Nag contends that the petitioners are the local and permanent residents of Andaman & Nicobar Islands isolated from mainland as such they should be engaged directly without having the outsourcing otherwise the petitioners right to be considered for engagement would be highly jeopardised.

3. Per Contra, Mr. Rao, learned advocate appearing for the respondent authorities submits that the direction of the Lieutenant Governor dated 28 May, 2014 was reviewed on 03 November, 2016. Accordingly, on 24 February, 2014 the Deputy Secretary (Shipping) issued the order thereby giving priority to the outsourcing manning instead of in-house manning to that effect. Mr. Rao relies on some relevant portion of the review of the direction of Lieutenant Governor issued on 28 May, 2014 which are quoted below:—

“This is regarding manning of 17 Nos. 75/100/150 pax foreshore vessels. The Seafarers Confederation of India given a notice (page 171/c) among other to the Hon'ble Minister of Shipping, RT&H for completion of all formalities for commencing in-house manning of these vessels from December, 2016, as per the decision taken by then Hon'ble LG.

The then Hon'ble LG while according approval for floating tender to outsource the officer manning for the above vessels for a period of two years, it was also directed that the Shipping Department should gear up to directly contract officers required for manning these vessels by taking the following action:

(a) Setting up of suitable Cell under the Directorate of Shipping Services for contracting and regulating the officers required for manning of foreshore vessels;

(b) Appointment of Consultants/Staff required for control and manning of the above Cell, if required on contract basis for efficient running of the Cell; and

(c) Collection and maintenance of database on NCV officers required to man these vessels and their availability in the market including within the islands and mainland.

In this connection, notes and orders on page 33/n of the linked file No. 49-268/2013-TR may kindly be perused. Now the DSS has informed that in compliance of the directions of Hon'ble LG, an exercise was carried out by the department for collecting date on availability of officers locally for in-house manning of foreshore vessels. It is, however, found that though junior level officers in rank of 2nd Officer and 3rd Engineer are available in adequate number locally, availability of senior Officers in the rank of Master, Chief Officer, Chief Engineer and 2nd Engineer are inadequate and these officers are to be engaged from mainland. The DSS is, therefore, of the view that in-house manning of the foreshore vessels by the department may not be practical due to the following reasons:

(i) Engagement of officers from mainland will involve payments for advance booking of air tickets, hotel accommodation etc., which the department may not be able to undertake effectively as the air fare varies on daily basis and advance payment is not permitted.”

4. Mr. Rao further contends accordingly, the Directorate of Shipping Services has made some suggestion/recommendations which are referred below:

“In view of the above, the DSS has made the follow suggestions/recommendations:

(a) The manning of these vessels may continue to be outsource through competitive tendering, as hitherto, since outsource of such services through qualified and authorized Manning Agent is the trend followed worldwide;

(b) Handing over the manning of these vessels to SCI on the existing manning fee; and

‘Z’ [(c) Extension of the existing manning contract with M/S AB Marine Service Pvt. Ltd., Chennai on the existing manning fee, terms & conditions, for a further period of one year accordance with clause 3.14 of the contract agreement or the alternative arrangement is made, whichever is earlier.”

5. Accordingly, recommendation was made for further extension of suggestion (a) (supra) for further extension of period which is going to expire on 30 November, 2016 and that was approved on 29 October, 2016 the same is quoted below:—

“Option (a) is recommended. Further the existing contract which is due to expire on 30.11.2016 needs to be extended. Hence ‘Z’ at para 5a may be approved.

29/10/16.”

6. Therefore, it is vehemently argued by Mr. Rao that non-availability of adequate number of in-house efficient senior officers in the rank of Master, Chief Officer, Chief Engineer and Second Engineer, therefore, those officers are to be engaged by taking resource of outsourcing manning from mainland. Though junior level officers in rank of Second Officer and Third Engineer are available in adequate number from residents of these Islands. Therefore, Mr. Rao, submits that in-house manning of the offshore vessels by the department may not be practical due to the shortage of competent persons for the posts of Master, Chief Officers, Chief Engineer and Second Engineer.

7. Accordingly, Mr. Rao submits there is no illegality or ambiguity in adopting practice of outsourcing manning. In conclusion Mr. Rao submits there is no merit in the present writ petition. Therefore, same should be dismissed.

8. Considering the rival submissions advanced by learned advocates appearing for the parties and after perusing the records, I find that petitioners filed repeated writ petition claiming that the department to resource in-house manning of the foreshore vessel for the post of crews, the senior officers in the rank of Master, Chief Officers, Chief Engineer and Second Engineer etc. instead of outsourcing the same as the decision was taken by the Hon'ble Lieutenant Governor on 28 May, 2014 to that effect which was published in the daily newspaper namely “The Daily Telegrams”. Unfortunately, that decision was subsequently reviewed. Thereafter the Deputy Secretary (Shipping) issued letter dated 24 January, 2017 thereby making some suggestions/recommendations considering the practical aspect.

9. Accordingly, on 29 October, 2016 only recommendation of option (a) was approved thereby extending manning contract with M/s. ABS Marine Services Private Limited, Channai for a further period of one year in accordance with clause 3.14 of the contract agreement.

10. Unfortunately that one year has already expired long back. Inspite of that the department is illegally allowing that manning contract with M/s. ABS Marine Services Private Limited to continue for indefinite period beyond the extended period. Therefore, the petitioners being islanders and also having requisite qualifications and possessing certificates of Navigating Watch Keeping Officers (NCV) have been deprived of getting any engagement as the department failed to take any steps for direct manning pursuant to the direction of the Lieutenant Governor published in the daily newspaper namely “The Daily Telegrams” on 28 May, 2014. I also cannot ignore the fact that since decision was taken by Lieutenant Governor on 28 May, 2014, therefore, on the basis of that pending writ petition was also withdrawn by the petitioners as the same was infructuous. Unfortunately, that decision was reviewed on 03 November, 2016. Accordingly expressed its inability to implement the decision of Lieutenant Governor dated 28 May, 2014. Ultimately by direction dated 29 October, 2016 the Lieutenant Governor thereby extending the existing manning contract with M/s. ABS Marine Services Private Limited, Chennai for a further period of one year which was due to be expired on 30 November, 2016. Though the extended period had already expired long back, in spite of that department is allowing the manning contractor namely M/s. ABS Marine Services Private Limited, Chennai to continue with that dead contract of outsourcing manning. It is also not out of place to mention that it is on record that there are adequate number of local senior officer in the rank of Master, Chief Officer, Chief Engineer and Second Engineer. Therefore outsourcing of manning by the department at this stage in my considered view is not required. After floating tender for the post like rank of Master, Chief Officer, Chief Engineer and Second Engineer if it is found that the in-house adequate numbers of candidates having requisite qualification are not available, then the department can take the recourse of outsourcing.

11. Accordingly, I direct the concerned authorities/department to immediately take steps in accordance with law for direct engagement from in-house for the post of junior level officer in the rank of Second officer and Third Engineer as well as for the post of senior level officers in the rank of Master, Chief Officer, Chief Engineer and Second Engineer etc. as per the direction of Lieutenant Governor published on 28 May, 2014 in “The Daily Telegrams” without any further delay, but positively within six weeks from the date of communication of this order.

12. Needless to mention, if it is found that for those posts as referred above sufficient local candidates with requisite qualification are not available, only then department could take steps for outsourcing engagement for those particular posts otherwise not.

13. Accordingly, the order dated 29 June, 2014 is quashed and set aside and the order dated 24 January, 2017 is quashed save and except that portion where approval was accorded by Lieutenant Governor in respect of option (a) thereby extending further period of one year of the existing manning contract which was due to expire on 30 November, 2016.

14. Accordingly, with the above direction this writ petition is disposed of. However, no order as to costs.