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2025 Supreme(Online)(Mad) 8359

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Honourable Mr Justice R. SURESH KUMAR
C.Padmambigai – Appellant
Versus
Oil And Natural Gas Corporation Ltd. – Respondent
W.A No. 3566 of 2025 | CMP Nos.29423 and 29426 of 2025



Advocates:
For the Appellants/Petitioners: Sathish Parasaran, Najeeb Usman Khan
For the Respondents: AR.L.Sundaresan, Mohammed Fayaz Ali, Vijay Narayan, Thomas T. Jacob

The 3% reservation for women entrepreneurs in public procurement is directory, not mandatory, and is applied annually across all tenders; courts will not interfere with tender awards absent arbitrariness or mala fide.

Headnote:(A) Public Procurement Policy for Micro, Small and Medium Enterprises - 3% reservation for women entrepreneurs - Scope of judicial review in tender matters - Principles from Jagdish Mandal v. State of Orissa, Central Coalfields Ltd. v. SLL-SML (Joint Venture Consortium), Subodh Kumar Singh Rathour v. Chief Executive Officer - The 3% reservation is directory, not mandatory, and is applied annually across all tenders floated by the authority, not per individual tender.

(B) Judicial review of tender awards - Courts will not interfere unless the decision is arbitrary, mala fide, or perverse; minor technical objections do not warrant interference if the tender awarding authority has considered merits and demerits without malafide.

(C) Capacity of successful bidder - The tender document provided for evaluation and corrective measures if the lowest bidder could not lift 100% of the tendered quantity; the authority retains checks and balances including penalties.

(D) The court is slow to interfere with policy decisions of the executive.

Facts of the case:
The appellant, a women entrepreneur, participated in a tender for transportation of crude oil and allied products floated by the respondent corporation. She was L3 (third lowest bidder), and her husband was L7. The tender was awarded to the third respondent (L1). The appellant challenged the award before the Writ Court, contending that the 3% reservation for women-owned micro and small enterprises (MSEs) was not followed, and that the successful bidder lacked capacity to handle 100% of the work. The Writ Court dismissed the petition, prompting this intra-court appeal.

Findings of Court:
The 3% reservation for women entrepreneurs is directory, not mandatory, and is implemented annually over the entire set of tenders, not per individual tender. The respondent corporation had sufficient checks and balances to ensure the successful bidder's capacity, including time extensions and penalties. No mala fides or arbitrariness were shown. The Writ Court correctly applied the principles of limited judicial review in tender matters.

Issues: (i) Whether the 3% reservation for women entrepreneurs is mandatory and must be applied in every tender. (ii) Whether the successful bidder lacked capacity to handle 100% of the work, justifying interference. (iii) Scope of judicial review in tender awards.

Ratio Decidendi: The 3% reservation policy is directory; its implementation is a policy decision of the executive. Courts should be slow to interfere with tender awards made by the competent authority after due consideration, unless there is mala fide, perversity, or violation of statutory provisions. The existence of contractual checks and balances obviates the need for judicial intervention on allegations of insufficient capacity. Result : Appeal dismissed.

Judgment

(Judgment of the Court was delivered by R.Suresh Kumar J.)

This intra Court appeal has been directed against the order passed by the Writ Court dated 06.08.2025 made in W.P.No.38746 of 2024.

2. In fact the impugned order was a common order passed in four writ petitions. The present one is one among the four. The issue raised before the Writ Court was that, a tender for transportation of crude oil and other allied products of the respondent Oil and Natural Gas Corporation (ONGC) was floated. The appellant / writ petitioner, her husband and the third respondent were among the applicants who applied for the said tender. There were totally 13 such applications and the Tender Awarding Authority viz., ONGC, awarded the tender in favour of the third respondent viz., M/s.Kamalakannan Road Transport. This awarding of the tender is mainly under challenge in the said writ petition.

3. Even before filing this writ petition, W.P.No.34553 of 2024 was filed by the very same petitioner, questioning certain conditions imposed in the tender document. Other tenderers also filed W.P.Nos.34556 of 2024 and 34559 of 2024, almost for similar relief. Therefore, all these writ petitions were heard together and disposed of by the common order dated 06.08.2025 by the Writ Court.

4. Though it is a common order passed in the said four writ petitions, the present appeal is directed against W.P.No.38746 of 2024, where, the prayer sought for by the writ petitioner / appellant was for a writ of Certiorarified Mandamus to call for the records of the award of the tender in entirety given to the respondent No.3 in Tender No.V16KC24005 vide No.KKL/CAU-ASSET/MM/2024/1364232/KKRT dated 08.11.2024 and quash the same.

5. Mainly two grounds were raised before the Writ Court and the same grounds are urged before us by Mr.Sathish Parasaran, learned Senior Counsel appearing for the appellant. The first ground is that, there has been 3% reservation for the Micro and Small Enterprises (MSEs) owned by women entrepreneurs for awarding such kind of tenders and here, the appellant being a women entrepreneur must have been given the benefit of 3% reservation, which they have not considered. Had it been considered, the writ petitioner / appellant being L3 would have certainly got the tender. Therefore, that was the main and prime ground raised on behalf of the appellant.

6. The other ground is that, as per the tender conditions, once the Tender Awarding Authority comes forward to award 100% capacity to a single tenderer then he must have the capacity to supply the entire 100% capacity and if there is any lacuna, either the tender can be cancelled or part of the work can be divided among the other tenderers who were L2 or L3 and even beyond that. These are the two grounds urged by the learned Senior Counsel even before the Writ Court, which were not considered, is the grievance of the appellant and therefore, urging the very same grounds, the present writ appeal has been filed.

7. We have heard Mr.Vijay Narayan, learned Senior Counsel appearing for the third respondent, who is the successful tenderer in whose favour the tender was awarded on 08.11.2024 and since then, he has been doing the work to the satisfaction of ONGC ie., the Tender Awarding Authority.

8. We have also heard Mr.AR.L.Sundaresan, learned Additional Solicitor General appearing for the respondents 1 and 2 / Tender Awarding Authority, who would submit that, insofar as the first ie., the prime ground raised by the appellant that 3% reservation provided for the MSEs owned by women entrepreneurs, which has not been followed in the present tender is concerned, he would submit that the said reservation is not mandatory, but it is only directory. Secondly, he would submit that insofar as this 3% reservation is concerned, this reservation is provided to women entrepreneurs throughout the whole year ie., that too to eligible persons who come as L1 or L2 or L3.

9. Therefore in the present case, the single tender or solitary

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