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SUBBA REDDY SATTI
Arts And Crafts Society – Appellant
Versus
State of Andhra Pradesh – Respondent
Key Points: - The stay of operation of a High Court order does not wipe out the dicta or ratio laid down in the judgment; the ratio remains binding. (!) (!) - The Division Bench’s ruling upholding the validity of the clause restraining non-Hindu religious persons from participating in the tender binds the court despite the stay, and the writ petition lacks merit. (!) - Interim orders and stays do not extinguish precedents; they merely suspend execution, and the ratio of the judgment continues to be guiding or binding unless reconsidered. (!) (!) (!) - The case involves an e-Tender provision that prohibits non-Hindu religious persons from participating, and the High Court upheld this clause based on Rule 4(2)(K) and related constitutional considerations. (!) (!) (!) - The Apex Court had stayed the operation of the High Court’s judgment, but the High Court held that such stay does not wipe out the dicta and the Division Bench’s rationale remains binding. (!) (!)
JUDGMENT
SUBBA REDDY SATTI, J. - The above writ petition is filed to declare the e-Tender Notification in FILE/NIT No.G2/3772/2023, dtd. 12/10/2023 issued by the Executive Officer of 2nd respondent for procurement of pure cotton Khanduvas and Dhoties for the period from 1/11/2023 to 31/10/2024, incorporating condition No.2 prohibiting non-Hindu religious persons from participating in e-Tender, as illegal and arbitrary.
2. Heard Sri Vidya Sagar, learned counsel for the petitioner, learned Government Pleader for Endowments appearing for respondent Nos. 1 and 3 and Sri G.Ramana Rao, learned Standing Counsel appearing for respondent No.2.
3. Government issued G.O.Ms.No.426 Revenue (Endowments-I) Department, dtd. 9/11/2015 making amendments to Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Immovable Properties and Other Right (Other than Agricultural Lands) Leases and Licenses Rules, 2003. Rule No.4 of the original Rules was substituted. Rule 4(2)(K) of the substituted Rules reads as under:
"(K) No person professing other than Hinduism as his religion is entitled to obtain lease or license either through tender - cum-public auction or otherwise."
The main legal point established in the judgment is that the stay of operation of an order by the appellate court does not wipe out the dicta laid down in the judgment, and the ratio declared need no....
The court upheld the authority's discretion in setting eligibility criteria for tenders, emphasizing that judicial review is limited to cases of arbitrariness or unreasonableness.
The court affirmed that stringent eligibility criteria in public tender processes cannot violate statutory relaxations for Start-ups, emphasizing limited grounds for judicial review.
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....
Judicial interference in the matter of tenders and contracts is limited and the court should exercise restraint in interfering with the administrative decision-making process.
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