Case Note & Summary
The petitioner, Innovatiview India Limited, a company incorporated under the Companies Act and engaged in providing advanced surveillance and webcasting systems for elections, challenged certain conditions in an e-tender dated 3.3.2026 issued by the Additional Chief Electoral Officer, Tamil Nadu, for live webcasting in polling stations on polling day and recording on counting day for the General Elections to the Tamil Nadu Legislative Assembly, 2026. The petitioner contended that the condition requiring the bidder to have 50% of its annual turnover from webcasting services for the last three financial years was arbitrary, unreasonable, and violative of Article 14 of the Constitution of India. The court analyzed the tender conditions and found that the impugned condition was overly restrictive and not proportionate to the objective of ensuring technical capability. The court held that such a condition would stifle competition and was not based on any rational nexus with the purpose of the tender. Consequently, the court quashed the impugned condition and directed the respondents to modify the tender accordingly. The court also noted that the petitioner had the necessary technical capability and experience to undertake the project.
Headnote
A) Constitutional Law - Article 14 - Reasonableness of Tender Conditions - The court examined whether a condition in a tender for election webcasting requiring 50% of annual turnover from webcasting services for the last three years was arbitrary and unreasonable. The court held that such a condition was overly restrictive and not proportionate to the objective of ensuring technical capability, and thus violative of Article 14. (Paras 1-10) B) Public Procurement - Tender Conditions - Judicial Review - The court reiterated that while the State has discretion in prescribing tender conditions, such conditions must be reasonable, non-arbitrary, and must not stifle competition. The condition in question was found to be arbitrary and was quashed. (Paras 5-10)
Issue of Consideration
Whether the condition in the e-tender requiring the bidder to have 50% of annual turnover from webcasting services for the last three years is arbitrary, unreasonable, and violative of Article 14 of the Constitution of India.
Final Decision
The court quashed the impugned condition in the tender requiring 50% of annual turnover from webcasting services for the last three years as arbitrary and violative of Article 14 of the Constitution of India, and directed the respondents to modify the tender accordingly.
Law Points
- Article 14 of the Constitution of India
- Tender conditions must be reasonable and non-arbitrary
- Restrictive eligibility criteria in public procurement
- Judicial review of tender conditions
- Doctrine of proportionality
