Case Title: HDFC Bank Limited vs. State of Rajasthan and Others
Date of Decision: 29 August, 2023
S.B. Civil Writ Petition No. 9818/2023
Presiding Judge: Hon’ble JUSTICE PUSHPENDRA SINGH BHATI
Introduction:
In the case of HDFC Bank Limited vs. State of Rajasthan and Others, the Hon’ble Rajasthan High Court considered a legal challenge to the tender conditions set by the State of Rajasthan for the Mukhyamantri Nihshulk Annapurna Food Packet Scheme. The petitioners, various firms, raised objections to certain eligibility criteria laid down in the tender notice, alleging that these criteria were arbitrary and designed to limit competition unfairly. The case was heard by Hon’ble Dr. Justice Pushpendra Singh Bhati, and the judgment was reserved on August 16 and 18, 2023, and pronounced on August 29, 2023.
Facts:
The State of Rajasthan introduced the Mukhyamantri Nihshulk Annapurna Food Packet Scheme, aimed at supplying high-quality branded food items to Fair Price Shops (FPS) across the state. The District Collectors of various districts in Rajasthan published tender notices inviting electronic bids for the supply of specific food commodities, such as sugar, edible refined oil, and coriander powder. The petitioners, firms engaged in trading and supplying food items, participated in the tender process. However, they challenged certain conditions in the tender notice, specifically conditions 4 and 5 of Clause II.
Condition 4 required bidders to have an average annual turnover of Rs. 67.116 Crores (60% of the total estimated cost of the bid) over the last five financial years, along with submission of audited accounts for verification. Condition 5 mandated that bidders should have work orders of a minimum of Rs. 50.00 Crores for the supply of listed items in at least three districts of any State Government Departments/Government Institutions in the last three preceding years. The petitioners contended that these conditions were unreasonable and designed to restrict competition, thus violating the principles of fairness and transparency in public procurement.
Judgment:
The Hon’ble Rajasthan High Court, after considering the arguments presented by both parties, dismissed the petitions challenging the tender conditions. The Court upheld the eligibility criteria set by the State authorities, emphasizing that judicial interference in tender conditions is limited unless there is evidence of arbitrariness, malafide intent, or discrimination.
The Court referred to previous judgments and principles governing judicial review in matters related to tender conditions. It emphasized that terms and conditions of tender documents should not be subject to judicial scrutiny unless they are arbitrary, discriminatory, mala fide, or against public interest. In this case, the Court found no evidence of such flaws in the tender conditions.
Therefore, the Court concluded that the petitioners had failed to demonstrate that the tender conditions were arbitrary, unreasonable, or biased. Consequently, the petitions were dismissed, and the eligibility criteria for the Mukhyamantri Nihshulk Annapurna Food Packet Scheme were upheld.
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Written by Yagya Agarwal