Case Note & Summary
The petitioners, associations and individual electrical contractors, challenged a tender notification dated 11.01.2018 issued by the Executive Engineer (Elec.) of BBMP for electrical works. The tender required bidders to be registered with BESCOM (Bangalore Electricity Supply Company Limited). The petitioners argued that this condition was arbitrary and illegal, as it restricted competition and was not related to the work. They sought quashing of the tender notification and interim stay. The respondents, including BBMP and BESCOM, defended the condition as necessary to ensure quality and accountability. The court, after hearing arguments, held that the condition was a legitimate eligibility criterion and not arbitrary. The court dismissed the writ petitions, finding no merit in the challenge. The court emphasized that in tender matters, judicial interference is limited to cases of arbitrariness or mala fides, which were not present here.
Headnote
A) Tender Law - Eligibility Condition - Registration Requirement - Constitution of India, Article 14 - The court considered whether a tender condition requiring bidders to be registered with BESCOM was arbitrary. The court held that such a condition is a legitimate eligibility criterion to ensure quality and accountability, and not arbitrary or discriminatory. (Paras 1-10)
B) Constitutional Law - Judicial Review - Tender Matters - Article 226 - The court reiterated that in tender matters, the court's interference is limited to cases of arbitrariness, mala fides, or violation of statutory provisions. The condition in question was found to be reasonable and not violative of Article 14. (Paras 1-10)
Issue of Consideration
Whether the condition in the tender notification requiring the bidder to be registered with BESCOM is arbitrary, illegal, and violative of Article 14 of the Constitution of India.
Final Decision
The writ petitions are dismissed. No order as to costs.
Law Points
- Tender condition requiring registration with BESCOM is valid
- not arbitrary
- Courts should not interfere in tender conditions unless mala fide or arbitrary
- Article 226 jurisdiction limited in contractual matters.
Case Details
2018 LawText (KAR) (02) 26
Writ Petition No.3831/2018 c/w Writ Petition Nos.5799/2018 & 5915-16/2018 (GM-TEN)
Dr. Justice Vineet Kothari
Mr. Ganapathy Bhat, Mr. K.N. Puttegowda, Mr. Vikram U, Mr. S. Sriranga, Mr. Vijaykumar A. Patil
Bruhat Bengaluru Mahanagara Palike Power Contractors Association, Aravinda Electricals, Kumar Electricals, M/S. Shah Electricals
The Executive Engineer (Elec.), The Commissioner, M/S. Bangalore Electricity Supply Company Limited (BESCOM), The Principal Secretary
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Nature of Litigation
Writ petitions challenging a tender notification issued by BBMP for electrical works.
Remedy Sought
Quashing of the tender notification dated 11.01.2018 and interim stay of further proceedings.
Filing Reason
The petitioners challenged the condition in the tender requiring bidders to be registered with BESCOM as arbitrary and illegal.
Issues
Whether the condition in the tender notification requiring registration with BESCOM is arbitrary and violative of Article 14 of the Constitution of India.
Submissions/Arguments
Petitioners argued that the condition requiring BESCOM registration is arbitrary, illegal, and restricts competition.
Respondents argued that the condition is necessary to ensure quality and accountability in electrical works.
Ratio Decidendi
A tender condition requiring bidders to be registered with a specified authority (BESCOM) is a legitimate eligibility criterion to ensure quality and accountability, and is not arbitrary or violative of Article 14 of the Constitution. Courts should not interfere in tender conditions unless they are mala fide or arbitrary.
Judgment Excerpts
The condition requiring registration with BESCOM is a legitimate eligibility criterion to ensure quality and accountability.
In tender matters, the court's interference is limited to cases of arbitrariness, mala fides, or violation of statutory provisions.
Procedural History
The writ petitions were filed on various dates in 2018 challenging the tender notification dated 11.01.2018. The court heard the matter and dismissed the petitions on 27.02.2018.
Acts & Sections
- Constitution of India: Articles 226, 227, 14
