PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
SURESHWAR THAKUR, VIKAS SURI
Rahul Rajput – Appellant
Versus
Food Corporation of India – Respondent
JUDGMENT :
Sureshwar Thakur, J. (Oral)
1. The writ petitioner prays for the quashing of the rejection order Annexure P-7, wherebys the petitioner's representation against the rejection of his technical bid became rejected. At the very outset, the subject works are at a nascent stage, inasmuch as, though the subject works stand awarded to the successful bidders, but the services asked to be performed by the successful bidders have not yet commenced.
2. The above nascent stage of the works allotted to the successful bidders, is of grave importance, inasmuch as, it may ultimately effectively sway this Court to the extent, that in case this Court is convinced that the disqualification entailed upon the petitioner's technical bid, thus was as ill made disqualification, therebys, this Court may be further led to after quashing the allotment of works to the successful bidders, to make a mandamus upon the respondents to re-float fresh invitations to offer.
3. The learned counsel for the writ petitioner becomes aggrieved from the requisite tender condition embodied in clause 14(IV) of the tender form conditions, conditions whereof becomes extracted hereinafter:-
"IV. MSEs must indicate their reg

Medium enterprises are not entitled to Earnest Money Deposit exemption under government rules, highlighting the necessity for proper MSME classification in tender processes.
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.
MSEs with valid Udyam Registration are exempt from turnover and experience criteria in bidding processes as per applicable regulations, and arbitrary disqualification on these grounds is unlawful.
The main legal point established in the judgment is the implied power of the authority conducting the tender process to modify or relax tender terms in extraordinary situations, ensuring fair and rea....
Judicial review in tender matters is limited to assessing procedural fairness, not the merits of the tender conditions, which are determined by the tendering authority.
The court upheld the tendering authority's discretion in setting eligibility criteria, emphasizing limited judicial review focused on procedural fairness rather than the merits of the decision.
Compliance with specific pre-qualification criteria and terms and conditions of a tender notice is crucial for the acceptance of a bid.
Exemption from EMD under Government Order is limited to manufacturing MSMEs, not applicable to construction contractors.
The court affirmed that compliance with essential tender conditions is mandatory, and failure to meet these conditions justifies disqualification.
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