IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K. ILANTHIRAIYAN, J.
G. Kadar Sheriff – Appellant
Versus
R. Natarajan – Respondent
CRP (PD) No. 1683 of 2017, CMP No. 7927 of 2017
Decided On : 16-03-2021
| Table of Content |
|---|
| 1. challenge to the tender process regarding emd exemption. (Para 2 , 3 , 4) |
| 2. counterarguments regarding applicability of government order. (Para 5 , 6) |
| 3. court's analysis of government order applicability to the petitioner. (Para 7 , 8 , 9) |
| 4. court's final ruling on the writ petition. (Para 10) |
ORDER :
1. The writ petition has been filed challenging the tender notification dated 21.11.2023 insofar as it had failed to grant any exemption to the Micro Small and Medium Enterprises (herein after referred to as MSME) as envisaged under the Government Order issued by the first respondent in G.O.Ms.No.199, Finance (Salaries) Department, dated 27.06.2022.
2. Heard Mr.R.Maheswaran, learned counsel for the petitioner, Mr.P.Subbaraj, learned Special Government Pleader for the respondents 1, 2 and 4 and Mr.R.Sankar Ganesh, learned counsel for the respondents 5 and 6.
3. The learned counsel for the petitioner would submit that the petitioner is a registered MSME for building construction works and other allied works and has been issued with a registration certificate on 17.11.2022. The fifth respondent had issued an e-tender for two works, namely construction of shopping complex for Arulmigu Thanumalayanswami Temple at Susindthram and construction of classroom and toilet building for Sri Devikumari College for Women at Kuzhithurai through a tender bulletin on 27.07.2023.
4. In the above tender, EMD exemption was granted and the petitioner had also participated. The same had been cancelled before finalization of the tender and a fresh tender notice was also issued on 19.11.2023, which did not provide exemption from payment of EMD and therefore, the same is not inconsonance with the policy of the Government in G.O.Ms.No.199, Finance (Salaries) Department, dated 27.06.2022. Hence, he would submit that the tender process itself is bad in law as the fifth respondent had failed to grant exemption for the MSME, which held Udhayam Registration Certificate or any other valid certificate as notified by the Government of India. Hence, he would seek indulgence of this Court to quash the same and to further direct the fifth respondent to provide exemption for EMD inconsonance with the said Government Order.
10. In such view of the matter, I do not find any merits in this writ petition and accordingly, the Writ Petition stands dismissed. However, there shall be no order as to costs. Consequently, connected Miscellaneous Petitions are also closed.
Exemption from EMD under Government Order is limited to manufacturing MSMEs, not applicable to construction contractors.
Exemption of Earnest Money Deposit for MSMEs under G.O.Ms.No.199 is upheld as per court's findings.
Court directs government to decide tender L1 eligibility for EMD exemption after hearing parties, without adjudicating merits.
The court upheld the entitlement of MSMEs for EMD exemption in tender processes, contingent on the issuance of a corrigendum by the authorities.
The decision making process in tendering should be based on the materials placed before the tendering authorities, and bidders have the right to equality and fair treatment in the evaluation process.
A woman-managed MSME may seek relaxation of minimum turnover criteria in tender qualifications, ensuring fair opportunities.
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