Madras High Court Upholds Writ Appeal in Tender Reservation Case — Clarifies Applicability of Scheduled Caste Reservation. Caste reservation provisions apply only to divisible contracts, not to independent tenders for each warehouse.

High Court: Madras High Court Bench: Madurai In Favour of Accused
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Case Note & Summary

The case involved a writ appeal filed by the Managing Director of the Tamil Nadu Warehousing Corporation against a learned Single Judge's order allowing a writ petition that sought to amend an e-tender notification for handling and transportation contractors for the period 2026-2028. The respondent, claiming to belong to the Scheduled Caste community, argued that 5% of the warehouses should be reserved for Scheduled Caste/Scheduled Tribes as per the Tamil Nadu Transparency in Tenders Act, 1998 and the Tamil Nadu Transparency in Tender Rules, 2000. The learned Single Judge had observed that the respondent had submitted bids for 5 separate warehouses, which constituted 5% of the total, and directed that if the respondent was not the lowest bidder, she should be allowed to match the lowest bid. The respondent contended that the issue was now moot since the bids were already opened. The learned Additional Advocate General argued that the tender was for 62 independent warehouses, and thus the 5% reservation could only apply if the contracts were divisible. The court analyzed the relevant provisions and concluded that since each warehouse was an independent unit, the reservation could not be applied across the total number of warehouses. The court set aside the learned Single Judge's order, allowing the writ appeal and closing the connected miscellaneous petition without costs. The judgment was pronounced on 07.09.2026.

Headnote

A) Administrative Law - Tender Reservation - Applicability of Reservation for Scheduled Castes - Tamil Nadu Transparency in Tenders Act, 1998, Section 10(2) - Court held that reservation of 5% for Scheduled Caste/Scheduled Tribes applies only to divisible tenders, not to independent contracts for each warehouse. The learned Single Judge's order was set aside as the tender for each warehouse was indivisible, thus negating the applicability of the reservation provision (Paras 9-10).

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Issue of Consideration

Whether the reservation of 5% for Scheduled Caste/Scheduled Tribes applies to indivisible contracts for each warehouse.

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Final Decision

The court allowed the writ appeal, set aside the learned Single Judge's order, and closed the connected miscellaneous petition without costs.

Law Points

  • Tender reservation
  • Scheduled Caste
  • Tamil Nadu Transparency in Tenders Act
  • indivisible contracts
  • procurement rules
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Case Details

2026 LawText (MAD) (08) 241

W.A(MD)No.635 of 2026

2026-09-07

C.V.Karthikeyan, R.Sakthivel

Mr.B.Saravanan, Mr.G.Prabhu Rajadurai

The Managing Director, Tamil Nadu Warehousing Corporation

N.Nattathy

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Nature of Litigation

Writ appeal against a learned Single Judge's order regarding tender reservation for Scheduled Caste.

Remedy Sought

Appellant sought to set aside the learned Single Judge's order allowing the writ petition.

Filing Reason

The respondent claimed entitlement to a reservation of 5% of warehouses for Scheduled Caste bidders.

Previous Decisions

The learned Single Judge had allowed the writ petition based on the respondent's claims.

Issues

Applicability of 5% reservation for Scheduled Caste in indivisible contracts Interpretation of tender rules regarding independent warehouses

Submissions/Arguments

Respondent argued that the issue was moot as bids were opened Appellant contended that each warehouse was independent and thus no reservation applied

Ratio Decidendi

Reservation provisions under the Tamil Nadu Transparency in Tenders Act apply only to divisible contracts, not to independent tenders for each warehouse.

Judgment Excerpts

The Writ Appeal had been filed by the respondent in W.P.(MD)No. 6749 of 2026, aggrieved by the order of a learned Single Judge, dated 07.04.2026, allowing the Writ Petition. We hold that there cannot be any reservation of 5% out of the total 62 warehouses.

Procedural History

The writ appeal was filed against the order of a learned Single Judge allowing a writ petition concerning tender reservations.

Acts & Sections

  • Tamil Nadu Transparency in Tenders Act: Section 10(2)
  • Tamil Nadu Transparency in Tenders Rules: Rule 30-C
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