The Supreme Court struck down a tender condition requiring prior supply experience within Chhattisgarh as violative of Articles 14 and 19(1)(g) of the Constitution. The condition was held arbitrary for creating an artificial barrier, restricting competition, and offending the doctrine of a level playing field without a rational nexus to the tender’s object.
Facts Of The Case:
The appellant, Vinishma Technologies Pvt. Ltd., a company with experience supplying Sports Kits to several other states, challenged specific eligibility conditions in three tender notices issued by the State of Chhattisgarh for the supply of Sports Kits to government schools. The company was aggrieved by condition no. 4, which required bidders to have supplied sports goods worth at least Rs. 6.00 crores to state government agencies within Chhattisgarh in the last three financial years. This condition rendered the appellant ineligible to participate. After its representation was ignored, the appellant filed writ petitions before the High Court. The High Court upheld the impugned condition, relying on precedent and reasoning that the state was entitled to prescribe such terms to ensure the selection of a capable bidder for a project of public importance, noting that similar conditions existed in other states. The appellant then appealed to the Supreme Court, arguing that the condition was arbitrary, exclusionary, and violated its fundamental rights under Articles 14 and 19(1)(g) of the Constitution by discouraging wider participation and fostering cartelisation.
Procedural History:
The procedural history of this case commenced with the appellant filing writ petitions before the High Court of Chhattisgarh, challenging the constitutional validity of specific tender conditions, particularly the “Past Performance Restriction.” The High Court, via orders dated August 11 and 12, 2025, dismissed these petitions, upholding the state’s authority to frame the impugned condition. Subsequently, the appellant approached the Supreme Court by filing special leave petitions, which were granted, leading to the instant civil appeals. The Supreme Court, after hearing the rival submissions, allowed the appeals, quashing the impugned High Court orders and the offending tender condition.
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Court Observation:
The Supreme Court observed that the impugned tender condition, which mandated prior supply experience exclusively within the State of Chhattisgarh, was arbitrary and violated Articles 14 and 19(1)(g) of the Constitution. The Court held that the condition created an artificial barrier that unfairly excluded otherwise competent and financially sound bidders from other regions, thereby restricting competition and offending the doctrine of a level playing field. It found the state’s justification—that the requirement was necessary due to the state’s topography and Maoist-affected areas—to be untenable, as the supply of sports kits is not a security-sensitive activity and the condition was disproportionate to the stated goal. The Court concluded that the eligibility criteria lacked a rational nexus with the object of ensuring effective delivery of sports kits and instead promoted cartelisation.
Final Decision & Judgement:
The Supreme Court allowed the appeals, quashed the impugned orders of the High Court, and set aside the offending tender notices dated July 21, 2025. The Court declared the “Past Performance Restriction” condition, which required prior supply experience within Chhattisgarh, as arbitrary, discriminatory, and violative of Articles 14 and 19(1)(g) of the Constitution. Consequently, the respondents were granted liberty to issue fresh tender notices without the unconstitutional condition.
Case Details:
Case Title: Vinishma Technologies Pvt. Ltd. versus State of Chhattisgarh & Anr. Citation: 2025 INSC 1182 Civil Appeal No.: (@ SLP (C) No. 24075 of 2025) and connected appeals. Date of Judgement: October 6, 2025 Judges/Justice Name: Justice Alok Aradhe and Justice Sanjay Kumar