LI Network
Published on: October 28, 2023 at 15:58 IST
The Karnataka High Court has ruled that the South Western Railway, the respondent in a case, must reevaluate a representation submitted by the petitioner, especially concerning their bid in response to an e-tender notification.
The Court emphasized that in the context of a fresh tender, the petitioner’s participation should not be rejected solely based on their status as a start-up company.
In this particular case, the petitioner, a company engaged in supplying Crushing Equipments and Machineries, as well as civil construction works, approached the court seeking a direction to the respondent, South Western Railway.
The petitioner had submitted a bid in response to an e-tender notification but was informed that due to their start-up status and not meeting specific criteria, the respondent intended to call for a re-tender.
Justice R Devdas of the High Court held, “the respondent shall consider the representation given by the petitioner and consider whether the tender can be allotted to the petitioner or if the tender cannot proceed only on the ground that the petitioner is the only entity that has responded to the e-tender notification and a fresh tender has to be called for, then the participation of the petitioner in the fresh tender cannot be rejected on the ground that it is a start-up company.
The respondents are required to take into consideration the directions issued by the Union of India and proceed in accordance with the law.”
The petitioner’s counsel referred to a communication from the Ministry of Micro, Small, and Medium Enterprises, Government of India, which relaxed norms for start-ups and MSMEs in public procurement. It was noted that experience and turnover criteria could be relaxed for MSMEs in public procurements if they meet quality and technical specifications.
Additionally, the petitioner had successfully secured a tender from Konkan Railway Corporation Limited that exceeded Rs. 5 Crores 38 Lakhs, contradicting the respondent’s claim that the petitioner couldn’t participate in tenders exceeding Rs. 50.00 Lakhs.
Considering the submissions and documents presented, the Court directed the respondent to review the petitioner’s representation and determine whether to allocate the tender to them. If a fresh tender were to be called for, the participation of the petitioner should not be rejected solely on the grounds of its start-up status.
The respondent was instructed to adhere to the guidelines issued by the Union of India and act in accordance with the law, Accordingly the writ petition was disposed of.
Cause Title: Pushkraj Crushing Equipments Pvt Ltd v. The Senior Divisional Engineer