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IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T.ASHA
Blow Plast Industries, A registered partnership firm Represented by its Partner, Mr. Harsh Baid – Appellant
Versus
Indian Oil Corporation Limited, Represented by its Chairman – Respondent
| Table of Content |
|---|
| 1. petitioners allege violation of procurement policies. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8) |
| 2. respondents' defense relies on jurisdiction and contract interpretation. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 3. counterarguments emphasize non-violation of policy. (Para 18 , 19 , 20 , 21 , 22) |
| 4. court scrutinizes legality and implications of procurement policy. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49) |
| 5. judicial review may prevent circumvention of law. (Para 50 , 51 , 52) |
| 6. malafide intent suggested in tender process. (Para 53) |
| 7. court's directive to follow statutory procurement policy. (Para 54) |
COMMON ORDER :
P.T. ASHA, J.
Alleging that the respondent corporation is attempting to circumvent the procurement policy notified by the Ministry of Micro, Small and Medium Enterprises in exercise of the powers conferred under Section 11 of the Micro, Small and Medium Enterprises Development Act, 2006, hereinafter called the MSMED Act, the petitioners are before this Court.
2. It would be necessary to allude to the petitioners’ case as well as the defense to decide the issue on
The procurement policy mandates that specified items must be exclusively acquired from Micro and Small Enterprises, rejecting attempts to disguise procurement as a works contract.
The court upheld that 100% reservation for MSEs in public procurement is valid under the MSE Policy, rejecting claims of arbitrariness towards tender selection processes.
Courts lack the authority to direct government policy-making in procurement; however, they can mandate consideration of representations from affected parties to ensure lawful treatment.
The exemption for Micro and Small Enterprises under the Public Procurement Policy does not apply to work contracts, as clarified by the Ministry of MSME.
If denial of legitimate expectation in a given case amounts to denial of right guaranteed or is arbitrary, discriminatory, unfair or biased gross abuse of power or violation of principles of natural ....
The maximum benefit that can be reaped by an MSE under the Public Procurement Policy for MSMEs is up to 25% of the total tendered value, and the tender issuing authority cannot deviate from this stip....
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