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2025 Supreme(Online)(MAD) 13713
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
L. Victoria Gowri, J.
AAR Transport Company - Petitioner
Versus
The Managing Director, Tamil Nadu Civil Supplies Corporation and ors. - Respondents
W.P.(MD)Nos.21944, 21946 and 23628 of 2024 and W.M.P.(MD)Nos.18588, 18589, 18590, 18591, 20006 and 20007 of 2024
Decided On : 18-02-2025
Advocate Appeared :
For the Petitioner : Mr.O.R.Gokul Abimanyu, For Mr.Manoharan
For the Respondent : Mr.K.R.Buduru Zaman, Standing Counsel, Mr.P.Veera Kathiravan,, Additional Advocate General, For Mr.S.Mohan Kumar, Standing Counsel, Mr.H.Arumugam
Advocate Appeared:
For the Appellant : Mr.O.R.Gokul Abimanyu For Mr.Manoharan
For the Respondent:Mr.K.R.Buduru Zaman Standing Counsel Mr.P.Veera Kathiravan, Additional Advocate General For Mr.S.Mohan Kumar Standing Counsel Mr.H.Arumugam
The court upheld the tender evaluation process, confirming compliance with the Tamil Nadu Transparency in Tenders Act, and justified delays due to extraordinary circumstances, while emphasizing judicial restraint in tender reviews.
Headnote:(A) Tamil Nadu Transparency in Tenders Act, 1998 - Sections 2(aa), 10(2), and 26 - Writ petitions challenging the award of transport contracts - Petitioners allege violation of tender rules and lack of communication regarding bid rejection - Court finds that evaluation process adhered to legal requirements and delays justified due to extraordinary circumstances - Impugned work orders modified to reflect correct contract period. (Paras 21, 24, 34)
(B) Judicial review in tender matters - Courts should exercise restraint and not interfere unless there is clear evidence of malafide or arbitrariness in the tender process. (Paras 25, 30)
Facts of the case:
The petitioner, a transport contractor, challenged the award of contracts to a third party for transportation of commodities by the Tamil Nadu Civil Supplies Corporation, citing violations of tender rules and lack of notification regarding bid rejections.
Findings of Court:
The court upheld the tender evaluation process, confirming that the delays were due to the model code of conduct during elections, and modified the work orders to reflect the correct contract period.
Issues: The main issues addressed include the legality of the tender evaluation process, communication of bid rejection, and the validity of the awarded contracts.
Ratio Decidendi: The court ruled that the tender evaluation complied with the Tamil Nadu Transparency in Tenders Act and that the delays were justified.
Result: Writ Petitions disposed of with modifications to the work orders.
ORDER :
L. Victoria Gowri, J.
Challenging the proceedings of the second respondent in Rc.No.C1/0895/2023 dated 28.06.2024, Rc.No.B1/02605/2023, dated 21.06.2024, 
G3/9394/2023 dated 24.06.2024 respectively, these Writ Petitions are filed.
2.The writ petitioner in W.P.(MD)Nos.21944 and 21946 of 2024 are one and the same.
W.P.(MD)No.21944 of 2024:-
3.The petitioner is the sole proprietor of M/s.AAR Transport Company, having its registered office at Madurai and the transport company is engaged in the business of transportation and movement of commodities for more than a decade. On 09.06.2023, an e-tender notification bearing No.C1/0895/2023, was published in the official website by the second respondent, inviting bids for the appointment of transport contractors for transportation of paddy custom milled rice, coarse grains, gunnies and stocks related to procurement activities from various direct purchase centres, storage points, buffer godowns, rail head wagons to various storage points, godowns, modern rice mills etc., within the district and outside the district as entrusted by the Tamil Nadu Civil Supplies Corporation, as specified in the nature of work for the period from July 2023 to July 2025. On 02.08.2023, the office of the first respondent vide proceedings in Rc.MT10/018188/2023 bearing Circular No.32 of 2023, issued a circular outlining the directives to the tender accepting authorities to adhere to the definition of domestic enterprise as defined in Section 2 (aa) of the Tamil Nadu Transparency in Tenders Act, 1998 , r/w. the proviso to Section 10 (2) of the Act, while evaluating the tenders submitted by the prospective tenderers.
4.Further the second respondent issued a Corrigendum in e-tender No.C1/895/2023, wherein the bid submission end date and bid open date was modified. The bid submission end date was on 31.07.2023 and opening date was on 01.08.2023. The petitioner transport company applied for the said tender on 29.07.2023, by uploading all the documents necessary for the e-tender in the concerned e-procurement website. However, after the submission of the petitioner's e-tender, he was not provided with any updates with regard to the tender with respect to the Virudhunagar Region. While being so, during the last week of July 2024, the petitioner came to know that the third respondent was carrying out the transportation activities for the second respondent in Virudhunagar region. On enquiry with the second respondent office, the petitioner was informed that the second respondent had passed the impugned work order in Rc.No.C1/0895/2023 dated 28.06.2024, in favour of the third respondent, for the movement of commodities for the period of 2 years in Virudhunagar region and the third respondent had also given consent letter accepting as transport contractor for Virudhunagar region. Challenging the same, this Writ Petition came to be filed.
W.P.(MD)No.21946 of 2024:-
5.The second respondent in their official website published an e-tender notification bearing No.B1/02605/2023 on 09.06.2023, for the Theni region for the appointment of transport contractors for transport of paddy custom milled rice, coarse grains, gunnies and stocks related to procurement activities from various direct purchase centres/storage points/buffer godowns/rail head wagons to various storage points/godowns/modern rice mills, etc., within the district and outside the district as entrusted by the Tamil Nadu Civil Supplies Corporation, as specified in the nature of work for the period from July 2023 to June 2025. Subsequently, the second respondent issued a Corrigendum bearing the bid submission end date and the bid open date was modified. The bid submission end date was on 09.08.2023 and bid opening date was on 10.08.2023. The petitioner transport company submitted his e-tender documents on 29.07.2023, by uploading all the necessary documents in the concerned e-procurement website. However, during the last week of July 2024, the petitioner was shocked t
