Case Note & Summary
The petitioner, Rajath R., proprietor of R.R. Enterprises, challenged a corrigendum issued on 08.04.2022 by the State of Karnataka, Health and Family Welfare Department, which modified the eligibility criteria for a tender for supply of food and diet to government hospitals in Ramanagara. The original NIT dated 31.03.2022 required bidders to have a GST certificate of at least one year. The petitioner, who had been supplying food to the District Hospital since 2021, applied and was eligible. However, the corrigendum increased the requirement to three years, thereby disqualifying the petitioner. The court heard arguments from both sides and found that the modification was arbitrary and without any justification. The court held that the corrigendum was unreasonable and violated Article 14 of the Constitution. Consequently, the court quashed the corrigendum and directed the respondents to proceed with the tender process based on the original NIT conditions. The petition was allowed with no order as to costs.
Headnote
A) Constitutional Law - Tender Process - Arbitrariness - Article 14 of the Constitution of India - The court examined whether a corrigendum enhancing the GST certificate requirement from one year to three years was arbitrary. Held that the modification was unreasonable and without any rationale, thereby violating Article 14. (Paras 4-6) B) Tender Law - Corrigendum - Modification of Eligibility Criteria - The court considered the validity of a corrigendum issued after the NIT, which increased the GST registration period from one year to three years. Held that such modification, which effectively excluded the petitioner who had already submitted a bid, was arbitrary and liable to be quashed. (Paras 4-6)
Issue of Consideration
Whether the corrigendum issued by the respondent enhancing the GST certificate requirement from one year to three years is arbitrary and violative of Article 14 of the Constitution of India.
Final Decision
The court quashed the corrigendum dated 08.04.2022 and directed the respondents to proceed with the tender process in accordance with the original NIT dated 31.03.2022. No order as to costs.
Law Points
- Tender conditions must be reasonable and non-arbitrary
- Corrigendum altering eligibility criteria after bid submission is impermissible
- Article 14 applies to tender processes
- GST registration requirement must be proportionate
