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2025 Supreme(Mad) 5305

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SATHISH KUMAR, J.
M/s. Fun World & Resorts India Pvt. Ltd., rep by its GPA Mr. U. Sivanarayanan – Petitioner 
Versus
The Principal Secretary to Government, Tourism, Culture, Religious Endowments and Chairman, Tamil Nadu Tourism Development Corporation – Respondent
W.P.Nos.47251 and 48902 of 2025 and W.M.P.Nos.52789, 52790, 54616, 54617, 54618 and 54310 of 2025
Decided On : 18-12-2025

Advocates Appeared:
For the Petitioner: Mr. M. Vijay Anand.
For the Respondent: Mr. V. Jeevagiridharan, AGP, Mr. J. Ravindran, AAG assisted by Mr. M. Habeeb Rahman, Mr. C. Vigneswaran for Mr. G. Paramasivam.

Tender authorities must adhere to statutory criteria and act transparently; courts will not interfere unless clear evidence of arbitrariness or malafide conduct is presented.

Headnote:(A) Tamil Nadu Transparency in Tenders Act, 1998 - Sections 10 and 11 - Writ of mandamus - Petitioner seeks to compel acceptance of its tender application for the conduct of the 50th India Tourist and Industrial Fair; claims arbitrary rejection based on non-compliance with eligibility criteria - Court found that rejection complied with lawful procedures and that the statutory conditions were mandatory. (Paras 2, 4, 19)

(B) Judicial Review - Tender processes are governed by principles of fairness and transparency - Courts exercise restraint in reviewing decisions provided by tender authorities unless arbitrariness or mala fides are demonstrably established. (Paras 10, 19)

Facts of the case:
Petitioner contested rejection of its tender by the second respondent on grounds it failed to meet technical bid criteria despite having submitted necessary documents. Allegations of favoritism towards competitors were asserted. (Paras 2-4)

Findings of Court:
The rejection of the petitioner's tender was legally sound due to failure to adhere to mandatory criteria - courts typically do not intervene without established arbitrary actions. (Paras 19-22)

Issues: Whether the rejection of the petitioner’s tender was arbitrary and compliant with statutory requirements of the Tamil Nadu Transparency in Tenders Act?

Ratio Decidendi: The court concluded that tender conditions and evaluation processes were appropriately followed, and the purported preferential treatment was unfounded - the petitioner had alternative legal remedies which were not pursued. (Paras 10, 19)

Result: Writ petitions dismissed.

Table of Content
1. petitioner's experience and bid submission details. (Para 2 , 3)
2. contention of arbitrary rejection of the bid. (Para 4 , 13 , 18)
3. legal precedents on tender processes and standards. (Para 5 , 6 , 7 , 8 , 9 , 15 , 16)
4. procedural details of tender and evaluation. (Para 10 , 11 , 12)
5. conclusion dismissing the writ petitions. (Para 14 , 17 , 22)
6. requirement of alternative remedies in legal proceedings. (Para 19 , 20 , 21)

ORDER :

N.SATHISH KUMAR, J.

The first writ petition, namely W.P.No.47251 of 2025, has been filed seeking a mandamus to second respondent, Managing Director, Tamil Nadu Tourism Development Corporation, to accept the petitioner’s bid and the e-Tender application and to reject the technical bid of 4th and 5th respondents and to follow the terms and conditions in the tender notification. The second writ petition, namely W.P.No.48902 of 2025 has been filed challenging the rejection order passed by the very same second respondent in respect of the same tender process. As both writ petitions have been filed by the petitioner in respect of the same tender process, these two writ petitions are disposed of by this common order.

2.The brief facts of this case are the petitioner, M/s. Fun World & Resorts India Pvt. Ltd., established in 1995, is engaged in organizing fairs and exhibitions and has successfully conducted the India Tourist and Industrial Fair at Island Grounds, Chennai, on six occasions between 2012 and 2020 and has received appreciation from the respondents. For conducting the 50th India Tourist and Industrial Fair, 2026, the second respondent, by Tender Notification No.63/FS/2025 dated 03.09.2025, invited tenders for conducting the 50th India Tourist and Industrial Fair, 2026 at Island Grounds, Chennai. The tender notification was published in the Tamil dailies and in their official website. The petitioner downloaded the tender documents and submitted its bid on 26.11.2025, enclosing all requisite documents along with the Earnest Money Deposit and tender advance, strictly in accordance with the tender conditions, by submitting a single cover containing both the technical and financial bids within the prescribed time. The Tender Opening Committee, on 27.11.2025 at 1.19 p.m., opened the e-tender and found three bidders. The petitioner’s technical bid was opened and accepted after scrutiny of the documents. The petitioner was orally informed that the financial bid would be opened on 28.11.2025. However, no written or email intimation, as mandated under the tender conditions, was issued to the petitioner regarding the opening of the financial bid. The petitioner waited till 29.11.2025 and repeatedly attended the office of the second respondent. However, till 01.12.2025, the petitioner was never intimated and the petitioner was not permitted to participate in the financial bid and there is no written communication or formal order of rejection.

3.The petitioner alleges that the tender conditions were diluted to favour certain bidders and that the tender process was conducted in violation of the provisions of the Tamil Nadu Transparency in Tenders Act, 1998 . Aggrieved thereby, the petitioner submitted a representation dated 29.11.2025 to the official respondents by speed post and email, requesting that its financial bid be opened and that the tender conditions be followed in letter and spirit. As no action was taken, the petitioner approached this Court by filing W.P.No.47251 of 2025, seeking directions as stated above. During the pendency of the said writ petition, the petitioner received an auto-generated email dated 01.12.2025 from the Government e-Procurement portal informing that its bid had been rejected at the technical evaluation stage on the ground of non-fulfilment of eligibility criteria, without prior notice or opportunity, though the technical bid had earlier been opened. Aggrieved by the said rejection, the petitioner filed W.P. No.48902 of 2025. Both writ petitions arise out of

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