Case Note & Summary
The petitioner, Karnataka Commercial and Industrial Corporation Pvt. Ltd., a private limited company engaged in manpower services and collection of entry fees, challenged a tender notification dated 21-02-2023 issued by the Deputy Director of Horticulture, Lalbagh, for collection of entry fee and vehicle parking fee at Lalbagh gardens for two years. The petitioner had been providing similar services at Lalbagh for several years. The impugned tender included a condition that bidders must have experience in collection of entry fee and parking fee at a botanical garden or a place of public resort with a minimum annual revenue of Rs.3.49 crores. The petitioner argued that this condition was arbitrary, unreasonable, and tailored to exclude it, as it had experience but not at the specified revenue level. The respondents contended that the condition was necessary to ensure financial capability and experience. The court analyzed the principles of judicial review of tender conditions, emphasizing that while authorities have discretion, conditions must be reasonable, non-discriminatory, and based on legitimate objectives. The court found that the condition was not necessary for ensuring quality of service and was designed to favour a particular bidder, violating Article 14. The court quashed the impugned tender notification and directed the respondents to issue a fresh tender with revised conditions that ensure a level playing field. The court also directed that the petitioner be allowed to participate in the fresh tender.
Headnote
A) Constitutional Law - Article 14 - Tender Conditions - Level Playing Field - The condition requiring bidders to have experience in collection of entry fee and parking fee at a botanical garden or a place of public resort with a minimum annual revenue of Rs.3.49 crores was held to be arbitrary and unreasonable as it was tailored to exclude the petitioner and other similarly situated bidders, violating the principle of level playing field under Article 14 of the Constitution. (Paras 10-15) B) Public Procurement - Tender - Judicial Review - Reasonableness - The court held that while the authority has discretion to prescribe tender conditions, such conditions must be reasonable, non-discriminatory, and based on legitimate objectives. The impugned condition was found to be unreasonable as it was not necessary for ensuring the quality of service and was designed to favour a particular bidder. (Paras 16-20) C) Constitutional Law - Article 14 - Transparency - Tender Process - The court emphasized that public authorities must act transparently and fairly in tender processes. The impugned condition lacked transparency and was struck down as it created an uneven playing field. (Paras 21-25)
Issue of Consideration
Whether the condition in the tender notification requiring bidders to have experience in collection of entry fee and parking fee at a botanical garden or a place of public resort with a minimum annual revenue of Rs.3.49 crores is arbitrary, unreasonable, and violative of Article 14 of the Constitution.
Final Decision
The writ petition is allowed. The impugned tender notification dated 21-02-2023 is quashed. The respondents are directed to issue a fresh tender with revised conditions that ensure a level playing field and allow the petitioner to participate.
Law Points
- Tender conditions must be reasonable and non-discriminatory
- Level playing field principle
- Article 14 of the Constitution
- Judicial review of tender conditions
- Transparency in public procurement
