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2026 Supreme(Online)(Ker) 28053

IN THE HIGH COURT OF KERALA AT ERNAKULAM
ZIYAD RAHMAN A.A., J
M/S MULTI DIMENSIONAL BAR CODING SERVICE PVT LTD – Appellant
Versus
THE STATE OF KERALA – Respondent
WP(C) NO. 11552 OF 2026|WP(C) NO. 25744 OF 2025



Advocates:
For the Appellants/Petitioners: SHRI.G.SREEKUMAR (CHELUR)
For the Respondents: SHRI.BINOY DAVIS, G.P, SMT.LATHA ANAND, SC, SHRI.KRISHNA PRASAD. S, SMT.LATHA ANAND, SRI.S.VISHNU (ARIKKATTIL), SRI.KRISHNA PRASAD. S, SMT.SINDHU S KAMATH, SMT.SWAPNA S.K., SMT.ROHINI NAIR, SHRI.SURAJ KUMAR D., SHRI.SUNILKUMAR K.K., SMT.A.KARTHIKA SIVAN

Court directs government to decide tender L1 eligibility for EMD exemption after hearing parties, without adjudicating merits.

Headnote:Tender process initiated by public sector undertaking for supply services. Petitioners, L2 bidder and technically disqualified bidder, challenge L1 bidder's participation without EMD payment claiming exemption under clause 8.27 limited to MSMEs registered under Udyog Aadhar or specified bodies operating within Kerala. Court notes issue referred to government for decision. Issues framed: Eligibility of out-of-state company for EMD exemption under tender conditions. Tender authority submitted matter pending before Secretary for resolution on L1 competence. Court refrains from merits, directs 1st respondent to decide after hearing parties within two months.

Table of Content
1. petitioners challenge l1 tender participation without emd exemption. (Para 1 , 2)
2. l1 defends exemption; tender authority defers to government decision. (Para 3 , 4)
3. court directs 1st respondent to decide after hearing parties. (Para 5)

JUDGMENT

Both these writ petitions are filed by the entities participated in a tender process notified as per Ext.P1 notification. The petitioner in W.P.(C). No.25744/2025 was not technically qualified and as far as the petitioner in W.P.(C). No.11552/2026 is concerned, it was the L2. In both these writ petitions, the challenge is raised against the competence of the 3rd respondent, who happened to be L1. The challenge is raised mainly on the ground that, the 3rd respondent was allowed to participate in the tender process without payment of EMD, on the reason of exemption provided in the tender notification. 2. According to the petitioners, the relevant clause which is 8.27 in the tender document, provides exemption only to MSMEs with Udyog Aadhar Registration or any other body specified by the Ministry of Micro Small and Medium Enterprises working within the State of Kerala. According to the petitioners, the 3rd respondent is a company not working within the State and it is doing business for a foreign company. Therefore, according to the petitioner, the said respondent is not eligible to get such exemption and therefore, on account of the participation of the 3rd respondent without payment of EMD and being successful in the tender process, the entire process is vitiated.

3. On the other hand, the learned counsel appearing for the 3rdrespondent, opposes the contention and brought the attention of this Court to the averments contained in the counter affidavit filed by the said respondents in W.P.(C). No. 25744/2025.

4. The learned Standing Counsel appearing for the 2nd respondent, the tendering authority, submitted that, since the competence of the 3rd respondent in participating the tender has been raised as an objection by the petitioners, the matter is now placed before the 1st respondent for taking an appropriate decision. It is submitted that, based on the decision that will be taken by the 1st respondent in this issue, the 3rd respondent would take a decision as to whether to proceed with the tender or not.

5. Thus, as it is evident from the submission made by the learned Standing Counsel for the 2nd respondent that, the issue is now pending before the 1st respondent, it is not necessary for this Court to enter into any finding with respect to the said issues. Therefore, the writ petition can be disposed of, directing the 1st respondent to take a decision within a time frame.

Accordingly,it is ordered that the 1st respondent shall consider the question of finalization of the tender process initiated as per Ext.P2, after giving the petitioners, the 3rd respondent and other affected parties, an opportunity of being heard. Such a decision shall be taken, within a period of two months from the date of receipt of a copy of this judgment.

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