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2025 Supreme(Telangana) 1520
IN THE HIGH COURT FOR THE STATE OF TELANGANA
Nagesh Bheemapaka, J.
G. S. Security and Man Power Services - Appellant
Vs.
The State of Telangana - Respondent
Writ Petition No. 25331 of 2025
Decided On : 14-11-2025
Advocate Appeared:
For the Appellant : N V R Rajya Lakshmi
For the Respondent: GP For Labour
Judicial review in tender matters assesses decision-making processes, not merits, allowing for discretion in administrative evaluations while ensuring fairness without favoritism.
Headnote:(A) G.O.Rt.No. 4459 dated 27.12.2006 - Writ Petition - Tender conditions - The petitioner questioned the legality of outsourcing work allocation, alleging violation of tender conditions and lack of transparency. Petitioner contended that the allocation to the 6th respondent was arbitrary and against the established norms. (Para 1.1)
(B) Transparency in Tender Process - The court emphasized that administrative discretion allows some flexibility in tender processes, provided it maintains fairness and does not exhibit favoritism. (Para 10)
(C) Judicial Review Scope - The court reinforced that judicial review in tender matters is confined to the decision-making process rather than the merits of the decision itself, as cited in precedents. (Paras 11, 12)
Facts of the case:
The petitioner, a registered agency, was allegedly overlooked for outsourcing work despite prior successful execution. The 6th respondent's bid was accepted even though it failed to meet the turnover criteria, raising questions of legality. (Paras 1.1, 2.1)
Findings of Court:
The court upheld the tender evaluation process and found the decision to accept the 6th respondent's bid compliant with the guidelines for administrative discretion while emphasizing that no arbitrariness was demonstrated. (Paras 12, 13)
Issues: The court examined whether substituting a bank guarantee for a turnover certificate constituted an improper relaxation of tender conditions and if the process demonstrated arbitrariness. (Paras 9, 10)
Ratio Decidendi: The court concluded that the acceptance of a bank guarantee was within administrative discretion, and the tender process was executed without discrimination, thus upholding the action of the 3rd respondent. (Paras 12, 13)
Result: Writ Petition dismissed.
| Table of Content |
|---|
| 1. petitioner challenges the outsourcing contract process. (Para 1 , 2) |
| 2. court reviews the legitimacy of tender conditions. (Para 3 , 9 , 10) |
| 3. respondents assert validity of the tender process. (Para 4 , 5 , 6 , 7) |
| 4. judicial review limitations in tender matters. (Para 11 , 12) |
| 5. writ petition is dismissed. (Para 13 , 14 , 15) |
ORDER :
Nagesh Bheemapaka, J.
Petitioner questions the action of the 3rd respondent in issuing proceedings dated 20.08.2025, whereby outsourcing work for the Government Medical College, Suryapet, was allotted to the 6th respondent for the financial year 2025-2026 pursuant to Tender Notification dated 06.06.2025. They pray for the said proceedings to be declared illegal, arbitrary and contrary to the tender conditions and the principles of transparency and fairness in government contracts.
2. Petitioner asserts that it is a registered manpower and security services agency under Registration No. SEA/NAL/ALO/NG/56575/2017, renewed periodically, and has been providing outsourcing and security services to various government departments including Government Medical College, Suryapet, for several years without any adverse remarks. Petitioner had successfully executed the outsourcing work for the Government Medical College during the financial year 2024-25 to the satisfaction of the authorities concerned and was even issued a certificate of appreciation by the Principal, Government Medical College, Suryapet, vide Rc. No. 428/E3/GMC-SRPT/2025 dated 15.05.2025. Despite such record, petitioner was ignored for allotment of the subsequent year's work.
2.1. Petitioner states that the 3rd respondent issued Tender Notification dated 06.06.2025 inviting tenders for empanelment of outsourcing agencies for various departments for the financial year 2025-26. The last date for submission of tenders was 18.06.2025, and tenders were opened on 20.06.2025. Petitioner participated and submitted all the required documents as per the tender form, including turnover certificate, EPF, ESI, GST and Labour registrations along with six months' payment receipts. It is contended that as per Condition No. 6 of the tender, each agency was required to have a minimum turnover of Rs. 30 lakhs in any one of the last three financial years and failure to submit proof of turnover would result in rejection of the bid. The 6th respondent did not satisfy this condition, as its turnover for 2024-25 was only Rs. 3,62,830 as per information obtained under the Right to Information Act, 2005. Petitioner further alleges that the 3rd respondent improperly accepted a bank guarantee of Rs. 30 lakhs furnished by the 6th respondent in lieu of the mandatory turnover certificate. Such substitution, according to petitioner, is impermissible as tender conditions did not provide for any alternative form of proof for financial eligibility. Acceptance of the 6th respondent's bid, despite its failure to meet the tender criteria, is contended to be arbitrary, discriminatory and violative of G.O.Rt.No. 4459 dated 27.12.2006, which mandates transparency in empanelment of outsourcing agencies.
2.2. Petitioner also submits that several representations dated 15.05.2025, 26.07.2025, and 04.08.2025 were addressed to official respondents seeking extension of previous contract until completion of the fresh tender process, but the same were ignored. It is therefore, contended that proceedings dated 20.08.2025 are illegal and liable to be set aside.
3. By order dated 25.08.2025, this Court granted interim suspension of the proceedings dated 20.08.2025 till the next date of hearing and the said order was extended from time to time.
4. The 3rd respondent - District Collector, Suryapet filed a counter affidavit and an additional counter stating that tender notification dated 13.06.2025 was issued strictly in accordance with G.O.Rt.No. 4459 dated 27.12.2006 for empanelment of outsourcing agencies for 2025-26. Thirty-four agencies applied, and twenty-seven were found eligible
