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2025 Supreme(Ker) 2378

IN THE HIGH COURT OF KERALA AT ERNAKULAM
RAJA VIJAYARAGHAVAN V, K. V. JAYAKUMAR, JJ.
Swamy Ayyappa Enterprises - Appellant 
Versus 
Travancore Devaswom Board - Respondent 
WP(C) No. 26329 of 2025
Decided on : 23-08-2025

Advocates:
Advocate Appeared:
For the Appellant : SRI.V.KRISHNA MENON, SMT.P.VIJAYAMMA, SMT.J.SURYA, SMT.A.B.BEENU
For the Respondent: SRI.G.BIJU, SC, KERALA DEVASWOM RECRUITMENT BOARD, SHRI.HARIKRISHNAN M.S., SHRI. V. KRISHNA MENON

Partners of a defaulting firm cannot bypass obligations by participating in tenders through another partnership, and suppression of material facts precludes equitable relief.

Headnote:(A) Indian Partnership Act, 1932 - Section 25 - Bid participation and defaulters - The court found that suppression of material facts disqualifies a participant from tender processes, emphasizing that partners in a defaulter firm cannot evade obligations via new partnerships. (Paras 11, 17, 19)

(B) Clean Hands Doctrine - The court ruled that a litigant approaching the court must do so with clean hands; deceitful practices invalidate any claim for equitable relief. (Paras 19)

Facts of the case:
The petitioner firm, involved in food product distribution, was denied participation in tenders due to the default of S.S.A. Enterprises, a firm with which its managing partner was associated. The court considered the attempts to bypass tender regulations through new entity registration.

Findings of Court:
The court concluded that the petitioner suppressed material facts and failed to independently establish a legal right for equitable relief.

Issues: The central issue was whether participation in tenders by partners of a defaulter firm was valid.

Ratio Decidendi: Partnerships do not create separate legal entities; thus, partners retain liabilities. The failure to disclose material facts disqualifies tender submissions.

Result: Writ petition dismissed with costs of Rs. 10,000/- to be paid.

Table of Content
1. establishment of the partnership firm. (Para 1 , 2 , 3)
2. tender submission process and issues related to eligibility. (Para 5)
3. claims of default and implications on tender eligibility. (Para 6 , 7 , 8 , 9 , 10 , 11)
4. court's reasoning regarding partner's liability and tender participation. (Para 12 , 14 , 15 , 16 , 17)
5. decision on the writ petition and consequences. (Para 18 , 19)

JUDGMENT :

K. V. Jayakumar, J.

The petitioner, Swamy Ayyappa Enterprises, is a partnership firm constituted under the provisions of the Indian Partnership Act, 1932 with Suresh M.S. as its managing partner. The firm was originally established pursuant to Ext.P1 partnership deed dated 24.10.2014. As per Ext.P1 deed, the primary object of the firm is to engage in the business of distribution of food products, bottled drinking water, beverages and other consumables at Sabarimala, Pampa, Nilakkal and other parts of Kerala and to act as authorized agents/contractors of government institutions, public companies, manufacturers and distributors of various food products. Anil Kumar M.K. and Suresh M.S. were the partners of the firm when it was originally constituted.

2. Ext.P1 partnership deed was subsequently reconstituted as per Ext.P2 deed dated 11.08.2015, pursuant to the retirement of one of the partners, Sri. Anilkumar M. K. Upon his retirement, he was substituted by Sri. Sivaraman M. A.

3. At the time when Ext.P1 partnership deed was executed, two of the partners therein namely Anil Kumar M.K. and Suresh M.S. were also continuing as partners of another firm, namely S.S.A Enterprises, which had been constituted earlier on 05.11.2013, along with one Surendran Tharayil, the 4th respondent. Ext.P3 is the copy of partnership deed dated 05.11.2013. 4. While so, W.P(C) No 41217/2024 was filed by a devotee seeking inter alia to initiate an enquiry with respect to the contracts for the year 2024-2025 and to find out whether any of the defaulters of the year 2023-2024 had obtained contracts. The managing partner of the petitioner herein was arrayed in his personal capacity as 9th respondent therein. This Court after considering the facts and circumstances disposed of the writ petition by judgment dated 28.2.2024 and directed the Devaswom Board to make necessary modifications in the terms and conditions of the e-tender notifications for kuthaka rights in the Devaswoms under the management, requiring the bidders to furnish the name and address proof of the partners/directors in case the tenders are submitted by a partnership firm company. It was further ordered that the details of the partners/directors shall be entered in the relevant register maintained by the Travancore Devaswom Board , in order to ensure that the Partners/Directors of a Partnership/Company which is a defaulter of Kuthaka right are not permitted to participate in the tender process for the subsequent year, in their individual capacity or vice versa.

5. For the festival season 2025-2026, the 2nd respondent had invited e-tenders from eligible persons for the supply of dry ginger as per Ext.P15 notification dated 30.06.2025. As per Ext.P16, the 2nd respondent has also invited e-tenders from the eligible persons for the supply of other articles. The last date for the submission of e-tenders was 14.07.2025, and the date fixed for opening of the tenders was 15.07.2025. The petitioner firm submitted tenders through the online portal for the supply of dry ginger, coconut, paper plates, Kettu Nira items and plastic baskets. He received Exts. P17 to P21 acknowledgments from the respondents. The grievance of the petitioner is that the 1st respondent and its officers refused to open the bid submitted by the petitioner, citing the pendency of WP(C). No. 41217/2024. It is pointed out that this Court has not passed any interim order in WP(C). No. 41217/2024 interdicting the petitioner from participating in the tender process.

6. According to the petitioner, the refusal by respondent Nos. 1 t

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