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2025 Supreme(Mad) 3722

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
L. Victoria Gowri, J.
AAR Transport Company - Petitioner
Versus
The Managing Director, Tamil Nadu Civil Supplies Corporation and ors. - Respondents
W.P.(MD)Nos.21944, 21946 and 23628 of 2024 and W.M.P.(MD)Nos.18588, 18589, 18590, 18591, 20006 and 20007 of 2024
Decided On : 18-02-2025

Advocates:
Advocate Appeared:
For the Petitioner: Mr.O.R.Gokul Abimanyu, For Mr.Manoharan
For the Respondent:Mr.K.R.Buduru Zaman, Standing Counsel, Mr.P.Veera Kathiravan,, Additional Advocate General, For Mr.S.Mohan Kumar, Standing Counsel, Mr.H.Arumugam

Successful tenderers cannot be challenged by unsuccessful ones without first addressing the rejection of their own bids, emphasizing the limits of judicial review in public procurement.

Headnote:(A) Tamil Nadu Transparency in Tenders Act, 1998 - Sections 2(aa) and 10 - Writ petitions challenging the validity of tender process and award of contracts for transportation services - Petitioners claimed violation of tender norms and non-communication of bid rejection - Court emphasized adherence to tender procedures and transparency in awarding contracts. (Paras 7, 10, 22, 24, 31)

(B) Judicial Review - Limitations in reviewing tender awards - Court held that unsuccessful bidders cannot challenge awarded tenders without first contesting bid rejections. (Para 25)

Facts of the case:
The petitioner, a transport contractor, contested the award of tenders to a competitor, arguing non-compliance with the Tamil Nadu Transparency in Tenders Act and lack of communication regarding bid rejections. (Paras 3, 5, 10)

Findings of Court:
The court noted that the rejection of the petitioner’s tenders was valid based on their failure to meet eligibility criteria and emphasized that the evaluation process had been transparent and compliant with the applicable laws. (Paras 12, 31)

Issues: The court addressed whether the tendering authority followed the procedures and timelines mandated by law, and whether the petitioners were justified in contending a violation of procedural norms. (Paras 7, 22)

Ratio Decidendi: The court determined that the evaluations and award of contracts were executed within the permissible timeframe and highlighted the need for competitors to first challenge any bid rejections before contesting awards. (Paras 25, 31)

Result: Writ Petitions dismissed with no orders as to costs.

Table of Content
1. petitioner's bid submissions and tender processes. (Para 1 , 3 , 4 , 5 , 6)
2. allegations of procedural violations in tendering. (Para 7 , 8 , 10 , 11 , 12)
3. evaluation timelines and extraordinary circumstances. (Para 21 , 22 , 31)
4. judicial restraint in reviewing tender processes. (Para 24 , 25)
5. modification of work order timelines. (Para 34)
6. disposal of the writ petitions without costs. (Para 35)

ORDER :

L. Victoria Gowri, J.

Challenging the proceedings of the second respondent in Rc.No.C1/0895/2023 dated 28.06.2024, Rc.No.B1/02605/2023, dated 21.06.2024, G3/9394/2023 dated 24.06.2024 respectively, these Writ Petitions are filed.

2.The writ petitioner in W.P.(MD)Nos.21944 and 21946 of 2024 are one and the same.

W.P.(MD)No.21944 of 2024:-

3.The petitioner is the sole proprietor of M/s.AAR Transport Company, having its registered office at Madurai and the transport company is engaged in the business of transportation and movement of commodities for more than a decade. On 09.06.2023, an e-tender notification bearing No.C1/0895/2023, was published in the official website by the second respondent, inviting bids for the appointment of transport contractors for transportation of paddy custom milled rice, coarse grains, gunnies and stocks related to procurement activities from various direct purchase centres, storage points, buffer godowns, rail head wagons to various storage points, godowns, modern rice mills etc., within the district and outside the district as entrusted by the Tamil Nadu Civil Supplies Corporation, as specified in the nature of work for the period from July 2023 to July 2025. On 02.08.2023, the office of the first respondent vide proceedings in Rc.MT10/018188/2023 bearing Circular No.32 of 2023, issued a circular outlining the directives to the tender accepting authorities to adhere to the definition of domestic enterprise as defined in Section 2(aa) of the TAMIL NADU TRANSPARENCY IN TENDERS ACT , 1998, r/w. the proviso to Section 10 (2) of the Act, while evaluating the tenders submitted by the prospective tenderers.

4.Further the second respondent issued a Corrigendum in e-tender No.C1/895/2023, wherein the bid submission end date and bid open date was modified. The bid submission end date was on 31.07.2023 and opening date was on 01.08.2023. The petitioner transport company applied for the said tender on 29.07.2023, by uploading all the documents necessary for the e-tender in the concerned e-procurement website. However, after the submission of the petitioner's e-tender, he was not provided with any updates with regard to the tender with respect to the Virudhunagar Region. While being so, during the last week of July 2024, the petitioner came to know that the third respondent was carrying out the transportation activities for the second respondent in Virudhunagar region. On enquiry with the second respondent office, the petitioner was informed that the second respondent had passed the impugned work order in Rc.No.C1/0895/2023 dated 28.06.2024, in favour of the third respondent, for the movement of commodities for the period of 2 years in Virudhunagar region and the third respondent had also given consent letter accepting as transport contractor for Virudhunagar region. Challenging the same, this Writ Petition came to be filed.

W.P.(MD)No.21946 of 2024:-

5.The second respondent in their official website published an e-tender notification bearing No.B1/02605/2023 on 09.06.2023, for the Theni region for the appointment of transport contractors for transport of paddy custom milled rice, coarse grains, gunnies and stocks related to procurement activities from various direct purchase centres/storage points/buffer godowns/rail head wagons to various storage points/godowns/modern rice mills, etc., within the district and outside the district as entrusted by the Tamil Nadu Civil Supplies Corporation, as specified in the nature of work for the period from July 2023 to June 2025. Subsequently, the second r

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