SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Ker) 530

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J.
M/S. Orizont Trading Llprepresented By Its Designated Partner K.P Abdurahiman – Appellant 
Versus 
The Administration Of Union Territory Of Lakshadweep (Utla) – Respondent 
WP(C) NO. 45593 OF 2025
Decided on : 18-02-2026

Advocates Appeared:
For the Appellant : SRI.SUMAN CHAKRAVARTHY SMT.K.R.RIJA SMT.BREJITHA UNNIKRISHNAN SMT.SURYA R. SHRI.SUDEESH K.E. SHRI.PRAHLADH S.P.
For the Respondent: ADVS. SRI.K.S.PRENJITH KUMAR, SC FOR R1 TO R4 SRI.P.JERIL BABU FOR R5 SHRI.SRINATH GIRISH SMT.PRASUDHA.S

Disqualification due to blacklisting applies to partnerships where designated partners impact eligibility, underscoring the authority's interpretation of tender conditions in public interest.

Headnote:(A) Tender Regulations - Clause 6.7 - Blacklisting - The petitioner, a limited partnership firm, was disqualified from a tender process on grounds that a designated partner was blacklisted by a relevant authority. The petitioner argued that re-constitution of the partnership prior to the tender submission removed disqualification. The court ruled that the interpretation of tender conditions is primarily the prerogative of the tendering authority and upheld the disqualification based on the blacklisting of the partner, establishing the principle that the entity bidding must be free of disqualifying factors, even if the partner is not directly involved at the time of submission. (Paras 4, 10, 21, 22)

Facts of the case:
The petitioner sought to challenge the disqualification due to one of its partners being blacklisted just prior to the tender submission, arguing that structural changes in the firm should negate the disqualification.

Findings of Court:
The court found merit in the respondents' case, noting the circumstantial timing of events related to the blacklisting and the partnership's reconstitution as a potential attempt to circumvent disqualification.

Issues: Whether the petitioner was eligible to participate in the tender based on the blacklisting of a partner.

Ratio Decidendi: The court upheld that a firm’s disqualification could arise from the blacklisting of its partners and emphasized the need for public interest in matters of contract.

Result: Writ Petition dismissed.

Table of Content
1. petitioner's disqualification due to blacklisting of partner. (Para 1 , 2 , 3 , 4)
2. respondents argue reconstitution was avoid disqualification. (Para 5 , 6)
3. court emphasizes authority's discretion in tenders. (Para 8 , 9 , 14 , 15 , 17)
4. counsel debates sufficiency of tender interpretation. (Para 10 , 11)
5. contentions on judicial review in tender matters. (Para 12 , 13)
6. interference in tender decisions requires public interest. (Para 19 , 20 , 21)
7. court upholds non-interference in tender evaluation decisions. (Para 22)

JUDGMENT :

ZIYAD RAHMAN A.A., J.

1. The petitioner is a limited partnership firm constituted under the provisions of Limited Liability Partnership Act, 2008. The grievance highlighted by the petitioner in this writ petition is against Ext.P6 decision taken by the Tender Evaluation Committee of the 1st respondent (the Administration of Lakshadweep), disqualifying the petitioner from participating in the tender process notified as per Ext.P4. The reason for disqualifying the petitioner was that, one of the designated partners of the petitioner firm was found to be blacklisted by the Central Public Works Department, which attracts as a disqualification as per the tender documents.

2. The facts which led to the filing of the tender notification are as follows: As per Ext.P4 notification dated 7.10.2025, the 3rd respondent invited tenders from the eligible person and entities, for “Transportation and Handling of HSD/Lub Oil filled/empty Barrels and General Cargos at Beypore Sub Division Office, Lakshadweep Electricity Department during the year, 2025-2026”. In response to Ext.P4, the petitioner submitted a tender and Ext.P7 is the “Proforma of Declaration of Blacklisting” furnished by the petitioner stating that, neither the petitioner nor any partner, involved in the management of the said firm, either in his individual capacity or as proprietor or managing partner of any firm or concern, have or has been placed on black list or holiday list declared by Lakshadweep District Department of Electricity or by any Department of the State or Central Government or any other Public Works Undertaking.

3. The tender was submitted by the petitioner on 28.10.2025, which was the last date fixed for submission of the tender. On 29.10.2025, the 3rdrespondent, as per the decision taken by the Tender Evaluation Committee, which is uploaded Ext.P6 in the web portal, disqualified the petitioner. The reason stated in Ext.P6 was that Sri. K.V. Sankarankutty, one of the designated partners who was previously a contractor of the Department for the same work, has been debarred from participating in any work of the Department for a period of two years. Thus, it was found that the petitioner is not eligible to participate in the tender process.

4. The case of the petitioner is that, the order debarring Sri.K.V. Sankarankutty, who was one of the designated partners of the petitioner firm, was passed on 17.10.2025. Immediately on the next day, the partnership was re-constituted as evidenced by Ext.P2 supplemental limited liability partnership agreement and necessary approval from the Registrar of Companies was also obtained as per Ext.P2 on 22.10.2025. As per the re-constitution deed, Sri. K.V.Sankarankutty retired from the partnership along with another person and a new partner named Moosa Anas, was inducted as a designated partner in the place of Sri. K.V.Sankarankutty. Therefore, it is the case of the petitioner that, as on the date of submission of bid on 28.10.2025, neither the petitioner-firm nor the partners of the said firm, were suffering from any disqualification by way of blacklisting and hence Ext.P6 decision rejecting the technical bid of the petitioner is not legally sustainable. It is also the case of the petitioner that, going by clause 6.7 of the tender documents, the stipulation contained therein that, the “bidder” shall not be either blacklisted or debarred by Central Government or any of the State/UT

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top