competition - The Legal Chamber

The Supreme Court emphasized that judicial review in tender matters ensures fairness and non-arbitrariness under Article 14. It held that misinterpretation of a tender condition, which wrongly excludes the highest bidder and deprives the state of revenue, vitiates the decision-making process. The court underscored the state's duty to maximize public value in natural resource auctions. Facts Of The Case: The case involved a public auction for a five-year sand quarry lease in Odisha. The appellant, M/s Shanti Construction Pvt. Ltd., was the highest bidder but its bid was rejected by the Tender Committee for allegedly failing to comply with Rule 27(4)(iv) of the Odisha Minor Mineral Concession Rules, 2016. The rule required submission of an Income Tax Return for the "previous Financial Year...

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 various 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 Sta...

Tag: competition

Supreme Court Sets Aside Mining Tender: “Previous Year” Means Year Before Bid

Supreme Court Quashes Chhattisgarh’s Tender Rule, Upholds “Level Playing Field” for Businesses