Case Note & Summary
The petitioners, eleven pump manufacturing companies, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging a tender notification issued by the Dr. B.R. Ambedkar Development Corporation Limited (respondents 3 to 5) for the supply of pumps. The tender notification contained a condition that only bidders belonging to the Scheduled Caste (SC) or Scheduled Tribe (ST) community were eligible to participate. The petitioners, who did not belong to SC/ST communities, contended that this condition was arbitrary, discriminatory, and violative of Article 14 of the Constitution. They argued that the condition had no nexus with the object of the tender, which was to procure pumps at the best price, and that it unfairly excluded them from competing. The respondents defended the condition, stating that it was intended to promote the economic upliftment of SC/ST communities, which was the very object of the Corporation. The court, after hearing arguments, held that the condition was a reasonable classification based on an intelligible differentia (caste) and had a rational nexus with the object of uplifting SC/ST communities. The court noted that the Corporation was established specifically for the development of SC/ST communities, and the tender condition was a form of affirmative action permissible under the Constitution. The court further held that the scope of judicial review in tender matters is limited, and unless the condition is arbitrary, discriminatory, or mala fide, the court should not interfere. The condition was found to be neither arbitrary nor discriminatory. Accordingly, the writ petition was dismissed.
Headnote
A) Constitutional Law - Article 14 - Reasonable Classification - Tender Condition - The condition in the tender notification that only bidders belonging to SC/ST community are eligible to participate is a reasonable classification based on intelligible differentia and has a rational nexus with the object of upliftment of SC/ST communities. The condition does not violate Article 14 of the Constitution. (Paras 10-15) B) Tender Law - Judicial Review - Tender Conditions - The court's scope of judicial review in tender matters is limited to examining whether the conditions are arbitrary, discriminatory, or mala fide. The condition requiring bidders to be from SC/ST community is not arbitrary as it is intended to promote the welfare of SC/ST communities. (Paras 10-15) C) Affirmative Action - Tender - SC/ST - The tender condition restricting eligibility to SC/ST bidders is a form of affirmative action permissible under the Constitution to uplift the SC/ST communities. The condition is valid and does not suffer from any legal infirmity. (Paras 10-15)
Issue of Consideration
Whether the tender condition restricting eligibility to bidders belonging to SC/ST community is arbitrary, discriminatory, and violative of Article 14 of the Constitution of India.
Final Decision
Writ petition dismissed. The tender condition requiring bidders to be from SC/ST community is valid and not violative of Article 14.
Law Points
- Tender condition requiring bidders to be from SC/ST community is valid
- Article 14 not violated
- classification based on caste for affirmative action permissible
- no arbitrariness in tender condition
