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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
B.VIJAYSEN REDDY
Karangula Abhishek Reddy – Appellant
Versus
State of Telangana – Respondent
ORDER :
B.VIJAYSEN REDDY, J.
The writ petition is filed challenging the pre-condition of turnover requirement in Tender Notification No.1451/UF/HMDA/ 2018 dated 19.08.2025 mandating a minimum turnover of Rs.15 crores in any one financial year during the last three financial years as one of the eligibility criterion for “Installation, Operation and Maintenance of the Gymnasium and Swimming Pool at Dr. G.S. Melkote Park, Hyderabad”, for a period of five years, as being arbitrary and unconstitutional. The petitioner has also sought for a consequential direction to set aside the tender notification and to call for fresh tenders.
2. The background facts of the case are set out hereunder:
(a) The petitioner is the sole proprietor of Praxis Fitness Hub. Pursuant to similar tender notification issued by the respondent No.4 in December 2016, the petitioner submitted his bid and he was declared the successful bidder. A Licence Agreement dated 23.03.2017 was executed between the petitioner and the respondent No.4. The petitioner was granted licence rights to discharge the subject work for “Installation, Operation and Maintenance of Gymnasium and Swimming Pool at Dr. G.S. Melkote Park, Hyderabad f
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....
Judicial review is permissible in tender matters only to prevent arbitrariness; criteria should ensure fairness and cannot favor specific bidders without rational basis.
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....
Eligibility for contracting: To foster competition, firms and individuals to offer goods, work, and services required for the program, any conditions for participation shall be limited to those that ....
Tender/Contract - Petitioner is disentitled to question the tender, having not participated in the tender process
The court established that significant deviations from tender guidelines and arbitrary evaluation criteria violate the principles of fairness and proportionality under Article 14 of the Constitution.
Eligibility criteria in public tenders can restrict competition based on objective assessments of capacity, and courts should defer to tendering authorities unless conditions are arbitrary or detrime....
Judicial review of tender conditions is limited to preventing arbitrariness; authorities have discretion in setting conditions based on project requirements.
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