2025 Supreme(Telangana) 2139
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA, J.
M/s ASG Supreme Laundry Services A Joint Venture Entity, Rep. By Its Authorised Signatory Mr. Vallala Yashodhar – Appellant
Versus
Union Of India, Rep. By Ministry Of Railways & Others – Respondent
Writ Petition No. 22690 OF 2025
Decided On : 15-12-2025
Advocate Appeared:
For the Appellant : Pramod Maligi
For the Respondent: Anathi Reddy (Sr Sc For Central Govt)
The court held that compliance with mandatory tender requirements is essential, and failure to upload critical documents leads to disqualification, affirming strict adherence serves fairness and transparency in public procurement.
Headnote:(A) Article 14 of the Constitution of India - Writ Petition against disqualification - Technical bid rejected for non-submission of mandatory Memorandum of Association (MOA) and Articles of Association (AOA) of a Joint Venture constituent - Petitioner contended rejection was arbitrary and violated principles of natural justice - Respondents maintained documents were mandatory and essential for assessing eligibility - Court upheld rejection, affirming tender requirements cannot be treated as optional - Petition dismissed. (Paras 1, 6, 9, and 10)
(B) Tendering Process - Strict adherence to compliance with tender conditions - Submission of eligibility documents mandated and non-compliance leads to automatic disqualification - Importance of uniform application of tender criteria among bidders emphasized. (Paras 5, 8)
(C) Judicial Review - Limited scope in tender matters; intervention only permissible under circumstances demonstrating arbitrariness, irrationality, or mala fides - Court cannot direct relaxation of essential conditions for a bidder. (Paras 8)
Facts of the case:
The appellant, a Joint Venture entity, sought a declaration that its exclusion from the tender process was illegal, citing administrative errors that prevented the upload of essential documents, and arguing its disqualification was a disproportionate response to a technical omission.
Findings of Court:
Court affirmed the rejection was justified per tender conditions, emphasizing strict compliance and the need for fairness in public procurement processes.
Issues: Whether the omission of MOA and AOA constituted a fatal defect and whether the respondents were obligated to accept late submissions.
Ratio Decidendi: Court ruled that the failure to upload essential documents incurred an automatic disqualification, and the tendering authority correctly adhered to established guidelines without bias or arbitrary actions.
Result: Writ Petition dismissed.
| Table of Content |
|---|
| 1. rejection of bid was based on procedural grounds. (Para 1 , 2) |
| 2. respondents assert strict compliance with tender conditions. (Para 3) |
| 3. court's analysis on mandatory compliance with tender requirements. (Para 4 , 5 , 6 , 7 , 8) |
| 4. decision upheld disqualification as lawful and justified. (Para 9) |
| 5. writ petition dismissed with no costs. (Para 10 , 11) |
ORDER :
NAGESH BHEEMAPAKA, J.
1. Aggrieved by rejection of its technical bid by Respondents 1 to 3 on the ground that petitioner failed to upload the Memorandum of Association (MOA) and Articles of Association (AOA) of one of its Joint Venture constituents, namely M/s Supreme Laundry Services Joint Venture Pvt. Ltd., petitioner is before this Court. Petitioner contends that such rejection is arbitrary, illegal, contrary to the tender conditions, violative of the principles of natural justice and the Constitution, and has resulted in its wrongful exclusion from further stages of tender process. It accordingly, seeks a declaration that disqualification is illegal and a direction to evaluate its financial bid.
2. The case of petitioner is that, it is a duly- constituted Joint Venture formed by entities having longstanding and demonstrated expertise in operating BOOT- based mechanised laundry systems for the Indian Railways across various zones. It asserts that its members possess extensive experience, technical competence and operational capability and have successfully executed similar high-capacity mechanised laundry projects for several years, thereby establishing a proven track record in the field. It is stated, Respondents 2 and 3 – South Central Railways issued Tender Notice dated 15.05.2025 prescribing, inter alia, a list of documents mandated to be uploaded as part of the technical bid. Tender conditions clearly enumerate the documents required at the technical stage, and that the list did not expressly include Memorandum of Association (MOA) and Articles of Association (AOA) of the non-substantial Joint Venture partner.
2.1. Petitioner asserts, it submitted and uploaded all the essential documents required by the tender, including technical capacity documents, experience certificates, financial turnover details, relevant registrations, statutory declarations and all documents expressly mandated. It states that the only documents not uploaded were MOA and AOA of M/s Supreme Laundry Services Joint Venture Pvt. Ltd., a non-substantial JV constituent. Failure to upload MOA and AOA of the said JV constituent occurred solely due to technical difficulties encountered on the GeM portal, such as repeated file-upload errors, slow or unstable internet connectivity, sudden interruptions, and file-size limitations which prevented successful completion of the upload process. It maintains that these issues were beyond its control and not attributable to any deliberate omission or negligence on its part.
2.2. Petitioner argues that omission is non-material, procedural and curable, as the JV constituent is a duly- incorporated company and its MOA and AOA are public documents that can be readily verified by the tendering authority either independently or from petitioner's clarification. It asserts that the tendering authority ought not to have treated such a minor technical lapse as a fatal defect leading to automatic disqualification. It is also stated, immediately upon learning of disqualification on 26.07.2025, it submitted clarification dated 27.07.2025 enclosing MOA and AOA and explaining the circumstances under which the documents could not be uploaded. This prompt submission demonstrates its good faith and bona fide intent to comply fully with the tender requirements.
2.3. Petitioner complains that Respondents 1 to 3 refused to examine the clarification, declined to open or consider the attached documents and mechanically adhered to strict literal compliance without appreciating the circumstances or the substantial compliance already achieved by petitioner. According to p