IN THE HIGH COURT OF ORISSA AT CUTTACK
Harish Tandon, C.J., Murahari Sri Raman, J.
M/s. Utkal Suppliers - Petitioner
Versus
Veer Surendra Sai Institute of Medical Sciences and Research, Burla, Sambalpur and another - Opposite Parties
W.P.(C) No. 19004 of 2025
Decided On : 18-12-2025
| Table of Content |
|---|
| 1. the eligibility criteria in tenders must ensure a level playing field. (Para 1 , 2) |
| 2. arguments presented for and against judicial review on eligibility criteria. (Para 3 , 4) |
| 3. judicial review is appropriate when administrative action is arbitrary or irrational. (Para 5 , 6) |
| 4. criteria for assessing arbitrariness in tender processes. (Para 10 , 12 , 13) |
| 5. criteria must relate to the service's required standards. (Para 14 , 15) |
| 6. the writ petition was dismissed as no arbitrariness was found. (Para 16 , 17) |
JUDGMENT :
HARISH TANDON, CJ.
1. The instant writ petition involves a pertinent issue relating to fixation of eligibility criteria of a turnover perceived by the petitioner to be arbitrary, whimsical and offends the core values of the constitutional rights encapsulated under Part III of the Constitution of India and is eroding the concept of “level playing field” in a commercial transaction. The turnover as imbibed into an eligibility criteria and assigned the marks, according to the petitioner, the same is discriminatory, arbitrary and tailored to favour a class of the selected suppliers/service providers and, therefore, actuated by malice and disturbs the core fabric of Articles 14, 19 (1)(g) and 21 of the Constitution of India.
2. The narration of the facts would bring clarity in determining the point so raised and the fixation of the turnover criteria in eligibility clause is inevitable. The petitioner claimed itself to be a supplier of dietary services / supply of cooked food with ancillary activities having possessed the relevant requisites statutory licences and engaged in providing such services in several medical colleges and hospitals in different corners of the State of Odisha. A tender was floated vide Request for Proposal (RFP) on 10th June, 2025 by Veer Surendra Sai Institute of Medical Sciences and Research (VIMSAR), Burla, Sambalpur for Outsourcing of Diet Services (Dry, Liquid, Cooked) for Indoor Patients at Government Health Institution. The said RFP contains an exhaustive mechanism in the form of schedule of events in processing the tender, which includes a Pre-bid meeting with all the intending participants, which in fact was held on 25th June, 2025 in the office of the Superintendent of VIMSAR, Burla. The last date of submission of the bid was fixed on 10th June, 2025 and all such bids submitted by the intending participants shall be opened on 21st July, 2025.
2.1. The Pre-bid meeting was invited for suggestions and/or objections to the terms and conditions embodied in the said RFP and it appears that several intending participants including the petitioner were raising a concern on Clause 5.2 relating to the Annual Average Turnover and the marks to be assigned with the maximum cap of 20. It is indicated therein that the participants having a turnover of less than Rs.9 crores shall not be awarded any mark, whereas the turnover ranging between Rs.9 crores to Rs.18 crores shall be awarded 10 marks and the turnover over Rs.18 crores shall be awarded 20 marks. The minutes of the proceeding of Pre-bid meeting in relation to the said RFP was discussed by the Committee in presence of the participating bidders and a clarification was made that since the said VIMSAR, Burla is a 1134 bedded referral hospital and, therefore, it is decided to select one experienced and financially sound firm, who can supply diet to the patients for 2 to 3 months without payment in emergency i.e. non-availability of funds. However, to give an opportunity to the aspiring bidders, the suggestions and request was further invited on or before 30th June, 2025 so that the same may be discussed in a further meeting to be held on 1st July, 2025.
2.2. The suggestions and/or request received from the different aspiring bidders including the petitioner was mainly focused on awarding the marks on the basis of an Annual Average Turnover of more than Rs.18 crores to be improper and discriminatory including the guidelines issued by the
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Judicial review is permissible in tender matters only to prevent arbitrariness; criteria should ensure fairness and cannot favor specific bidders without rational basis.
The imposition of arbitrary turnover requirements in tender processes, lacking rational justification, violates Articles 14 and 19(1)(g) of the Constitution, ensuring fair opportunity and competition....
Court emphasized the limits of judicial intervention in tender processes, maintaining that eligibility criteria must be rational and not arbitrary. The absence of merit in the petition led to its dis....
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
The main legal point established in the judgment is the limitation of judicial review in tender matters, the need for commercial prudence in evaluating tenders, and the importance of fairness and non....
The court affirmed that stringent eligibility criteria in public tender processes cannot violate statutory relaxations for Start-ups, emphasizing limited grounds for judicial review.
The formulation of tender conditions falls within the administrative domain of the authority, and judicial review is limited to preventing arbitrariness or favoritism. The courts cannot interfere wit....
Point of Law – The principles that emerge from the above precedents are, the writ court has limited jurisdiction in matters concerning contracts and invitation to bid for contract; Court must adopt r....
Judicial review of tender conditions is restricted to cases of arbitrariness or unreasonableness, reinforcing that the authority determining eligibility criteria has the discretion and expertise in c....
Judicial review of tenders limited to arbitrariness or malafide; eligibility conditions upheld if public interest served with multiple qualified bidders; bid time reduction valid with approval; ineli....
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