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SUPREME COURT OF INDIA
Sanjay Kumar, Alok Aradhe, JJ.
Vinishma Technologies Pvt. Ltd. – Appellant
Versus
State Of Chhattisgarh & Anr. – Respondents
Civil Appeal No. 12487 of 2025 (@ SLP (C) No. 24075 of 2025), Civil Appeal No. 12488 of 2025 (@ SLP (C) No. 26192 of 2025), Civil Appeal No. 12489 of 2025 (@ SLP (C) No. 23611 of 2025)
Decided On : 06-10-2025
Certainly. Based on the provided legal document, here are the key points:
The Court emphasized that the doctrine of level playing field requires that the gates of competition be open to all bidders who are equally qualified, ensuring fairness and equal opportunity in government procurement processes (!) (!) .
The eligibility criteria in tender notices must have a rational nexus with the objective of the procurement and should be framed to encourage wider participation and secure the best outcome for the State, thereby safeguarding public interest and the public exchequer (!) .
The Court clarified that the State has the authority to set tender conditions, but such conditions must not be arbitrary, discriminatory, or malicious. The Court will not interfere with tender terms unless they are found to be arbitrary or actuated by mala fides (!) .
Restrictions based on past local performance, such as requiring supply experience within the State, can create artificial barriers that violate constitutional rights, particularly Articles 14 and 19(1)(g), by excluding capable suppliers from outside the State without just cause (!) (!) .
The Court held that confining eligibility to local suppliers is irrational and disproportionate to the goal of ensuring effective delivery of services, especially when supply of goods like sports kits does not involve security risks or special considerations that justify such restrictions (!) (!) .
The impugned tender condition, which excluded suppliers without recent supply experience in Chhattisgarh, was deemed arbitrary, unreasonable, discriminatory, and violative of constitutional guarantees. It was found to restrict competition and promote cartelization (!) (!) .
The Court rejected the justification that regional security concerns or the state’s affected status justified exclusion of outsiders, emphasizing that such reasons are untenable for non-security-related supplies like sports kits and that local engagement can be achieved through supply chain arrangements (!) (!) .
As a result, the Court quashed the impugned tender conditions and orders, and permitted the respondents to issue fresh tender notices that comply with constitutional principles, ensuring wider participation and fair competition (!) .
Would you like a more detailed analysis or specific legal recommendations based on these points?
| Table of Content |
|---|
| 1. factual background of the case (Para 2 , 4 , 5 , 6 , 7 , 8) |
| 2. arguments of the parties in the case (Para 10 , 11 , 12) |
| 3. court's analysis of tender conditions and legal principles (Para 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21) |
| 4. final conclusion and order of the court (Para 23) |
JUDGMENT :
ALOK ARADHE, J.
1. Leave granted.
2. These appeals take exception to orders dated 11.08.2025 and 12.08.2025 passed in three Writ Petitions preferred by the appellant. The High Court of Chhattisgarh by the said orders, has repelled the challenge to the impugned tender condition contained in three tender notices dated 21.07.2025 which were issued for supply of Sports Kits to the students of Government Primary School, Government Upper Primary Schools and Government High and Higher Secondary Schools in the State of Chhattisgarh.
3. The facts giving rise to filing of these appeals which lie in a narrow compass, are as under:
(I) FACTS
4. The appellant is a Company registered under the Companies Act, 2013 and claims to have experience of supplying Sports Kits to various Departments of the States of Bihar, Karnataka, Gujarat and Government of NCT Delhi. The respondent No. 1 is State of Chhattisgarh whereas respondent No. 2 is State Project Director, Samagra Shiksha Chhattisgarh State Project Office, Department of School Education, Government of Chhattisgarh.
5. The Integrated Child Development Service (ICDS) Scheme is a Scheme for providing for supplementary nutrition, immunization and pre-school education to the children, launched in the year 1975, is a popular flagship program of the Central Government. The said Scheme provides for the integrated package of services, for the holistic development of the child and is a centrally sponsored scheme implemented by State Governments and the Union Territories. The Scheme is largely funded by the Government of India.
6. The Samagra Shiksha Chhattisgarh State Project Office, Department of School Education, Chhattisgarh published three tender notices (hereinafter to be referred to as “impugned tender notices”) on 21.07.2025 through Government-e-Market Place Portal for supply of Sports Kits to the students of Primary School, Upper Primary Schools and High and Higher Secondary Schools run by the State Government in the State of Chhattisgarh. The Sports Kits were to be supplied to 5540 cluster resource centres situated across all 33 districts in the State. The tender value of the contract was Rs.15.24 crores, Rs.13.08 crores and Rs.11.49 crores.
7. Section III(A) of the impugned tender notices prescribe qualification criteria with additional terms and conditions. The appellant was aggrieved by additional terms and conditions namely, condition Nos. 1, 4, 11 and 13, which rendered the appellant ineligible for participation in the impugned tender process. It, therefore, submitted a representation on 29.07.2025 to the State Project Director, Samagra Shiksha, School Education Department, Chhattisgarh. The aforesaid representation failed to evoke any response. The appellant thereupon filed three writ petitions, namely, Writ Petition (C) No. 4266 of 2025, Writ Petition (C) No. 4263 of 2025 and Writ Petition (C) No. 4274 of 2025, before the High Court in which validity of the aforesaid impugned tender conditions was challenged.
8. During the pendency of the writ petition by way of corrigendum dated 07.08.2025 condition Nos. 1, 11, and 13 were deleted. The Division Bench of the High Court by a common order dated 11.08.2025 passed in Civil Writ Petition (C) No. 4266 of 2025, Writ Petition (C) No. 4263 of 2025 and by an order dated 12.08.2025 passed in Writ Petition (C) No. 4274 of 2025, inter alia held that the impugned eligibility condition namely, condition No. 4 with regard to past performance is of similar nature and purpose, as, the condition in Association of Registration Plates v. Union of India and Ors , (2005) 1 SCC 679. It was further held that respondents have demonstrated that the impugned tender
(1) Government Contract – Tender – Doctrine of level playing field requires that gates of competition be opened to all who are equally placed.(2) Government Contract – Tender – Eligibility criteria m....
Tender conditions permitting out-of-state participation enhance competition and do not violate constitutional provisions regarding fairness and freedom of trade.
Tender conditions cannot differentiate based on ownership without rational basis, violating constitutional principles of equality and fairness. (Articles 14 and 19(1)(g))
Judicial review of tender conditions is restricted to cases of arbitrariness or unreasonableness, reinforcing that the authority determining eligibility criteria has the discretion and expertise in c....
The main legal point established in the judgment is the limitation of judicial review in tender matters, the need for commercial prudence in evaluating tenders, and the importance of fairness and non....
The imposition of arbitrary turnover requirements in tender processes, lacking rational justification, violates Articles 14 and 19(1)(g) of the Constitution, ensuring fair opportunity and competition....
Eligibility for contracting: To foster competition, firms and individuals to offer goods, work, and services required for the program, any conditions for participation shall be limited to those that ....
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