Andhra Pradesh High Court - Amravati
Guttikonda Seshukumar vs The State Of Andhra Pradesh on 17 July, 2025
APHC010337952025
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI
(Special Original Jurisdiction)
THURSDAY, THE SEVENTEENTH DAY OF JULY
TWO THOUSANDAND TWENTYFIVE
PRESENT
THE HON'BLE SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD
WRIT PETITION NO: 16902 OF 2025
Between:
Sri Guttikonda Seshukumar, S/o Veera Raghavaiah, Aged about 56
years , R/o p no 202, Achyutha Residence, Beside KVR college,
Nandigama, Krishna District, Andhra Pradesh-521185.
...Petitioner
AND
1. The State of Andhra Pradesh, Rep by Its Principal Secretary,
Department of PR, RD and RWS, Secretariat, Velagapudi, Amaravati,
Guntur District.
2. The Engineer in Chief, Department of Rural Water Supply and
Sanitation, C-Block, Vasudha Shelters, Saipuram Colony, Gollapudi,
Vijayawada - 521225.
3. The Superintendent Engineer, Department of Rural Water Supply and
Sanitation, Vijayawada Division, MG Road, Opp PWD Ground, ZP
Compound, Vijayawada, NTR District, Mobile-9100121306.
4. The Executive Engineer, Department of Rural Water Supply and
Sanitation, Vijayawada Division MG Road,Opp PWD Ground, ZP
Compound, Vijayawada, NTR District, Andhra Pradesh.
5. Jasti Rama Subramanyeswara Rao, 303B, Siri Green Jewel Nr.PR
Commissioner Office, Tadepalli, Guntur District Andhra Pradesh-
522501 Mobile-9949660278 Email rssrjasti@gmail. com
...Respondents
Petition under Article 226 of the Constitution of India praying that in the
circumstances stated in the affidavit filed therewith, the High Court may be
pleased to issue a writ, order or direction more particularly one in the nature
of writ of Mandamus to declare the action of the Respondents more
particularly the action of Respondent no 3 in disqualifying the bid of the
Petitioner qua Tender Notice Nos 13/T4/2025-26 dated 06.05.2(525 as the
winning bid without following the due procedure of law vide which the terms of
the invitation to tender were read in a tailor made manner to suit the
convenience of Respondent-5 as bad, manifestly arbitrary and illegal and also
in violation of Articles 14,19, 21 and 300A of Constitution of India and in
violation of the Tender Notice and also in violation of GO Ms No 94, I and
CAD (PWW) Department Dt 01-07-2003 and GO MS NO. 195 dated
10.05.1999 and consequently direct the Respondents-1 to 4 herein to
consider the financial bid of the Petitioner qua Tender Notice No 13/T4/2025-
26 dated 06-05-2025.
lA NO: 1 OF 2025
Petition under Section 151 CPC praying that in the circumstances stated
in the affidavit filed in support of the petition, the High Court may be pleased to
grant ad-interim ex-parte stay of the proceedings qua Tender Notice No
13/T4/2025-26 dated 06-05-2025 and direct the Respondents not to proceed
with the award of contract to Respondent- 5 and further direct Respondent-5
to not to execute the same pending disposal of the writ petition in the interest
of justice.
Counsel for the Petitioner: SRI C KRANTHI KUMAR LD COUNSEL
REPRESENTING SRI KASIM NAGASAIM
Counsel for the Respondent No. 1: GP FOR PANCHAYAT RAJ RURAL
DEV
Counsel for the Respondent Nos. 2 to 4: GP FOR IRRIGATION AND CAD
Counsel for the Respondent No.5: SRI P SAI SURYA TEJA
The Court made the following order:
1
APHC010337952025
IN THE HIGH COURT OF ANDHRA PRADESH
AT AMARAVATI
[3328]
(Special Original Jurisdiction)
THURSDAY, THE SEVENTEENTH DAY OF JULY
TWO THOUSAND AND TWENTY FIVE
PRESENT
THE HONOURABLE SRI JUSTICE GANNAMANENI RAMAKRISHNA
PRASAD
WRIT PETITION NO: 16902 OF 2025
Between:
1.GUTTIKONDA SESHUKUMAR, S/0 VEERA RAGHAVAIAH, AGED
ABOUT 56 YEARS R/0 P NO 202,ACHYUTHA RESIDENEE,
BESIDE KVR EOLLEGE, NANDIGAMA,KRISHNA DISTRICT,
ANDHRA PRADESH-521185.
...PETITIONER
AND
1.THE STATE OF ANDHRA PRADESH, REP BY ITS PRINCIPAL
SECRETARY, DEPARTMENTOF PR,RD AND RWS, SECRETARIAT,
VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT.
2.THE ENGINEER IN CHIEF, DEPARTMENT OF RURAL WATER
SUPPLY AND SANITATION, C-BLOCK, VASUDHA SHELTERS,
SAIPURAM COLONY, GOLLAPUDI, VIJAYAWADA - 521225.
3.THE SUPERINTENDENT ENGINEER, DEPARTMENT OF RURAL
WATER SUPPLY AND SANITATION, VIJAYAWADA DIVISION, MG
ROAD,OPP PWD GROUND, ZP COM POUND, VIJAYAWADA, NTR
DISTRIET, MOBILE-9100121306.
4.THE EXEEUTIVE ENGINEER, DEPARTMENT OF RURAL WATER
SUPPLY AND SANITATION, VIJAYAWADA DIVISION, MG
ROAD,OPP PWD GROUND, ZP COMPOUND,VIJAYAWADA, NTR
DISTRICT, ANDHRA PRADESH.
5.JASTI RAMA SUBRAMANYESWARA RAO, 303B, SIRI GREEN
rS
2
JEWEL, NR.PR COMMISSIONER OFFICE, TADEPALLI, GUNTUR
DISTRICT, ANDHRA PRADESH-5225D1 MOBILE-9949660278
EMAIL RSSRJ ASTL@GMAIL. COM
...RESPONDENT(S):
Counsel for the Petitioner:
1. KASIM NAG AS AIM
Counsel for the Respondent(S):
1.GP FOR PANCHAYAT RAJ RURAL DEV
2.GP FOR IRRI ANDCAD
The Court made the following ORDER:
Heard Sri C. Kranthi Kumar, Ld. Counsel representing Sri Kasim
Nagasaim, Ld. Counsel for the Petitioner, Sri P. Sai Surya Teja, Ld. Counsel
for the Respondent No.5, Sri P. Chaitanya, Ld. Counsel appearing on behalf
of Sri Y. Koteswara Rao, Ld. Standing Counsel for the Grama Panchayat and
Sri Panuku Rajesh Kumar, Ld. Asst. Government Pleader for Panchayat Raj.
2. The present Writ Petition is filed seeking the following relief:
"It is therefore prayed that this Hon'ble Court
may be pleased to issue a writ, order or direction
more particularly one in the nature of writ of
Mandamus to declare the action of the Respondents
more particularly the action of Respondent No. 3 in
disqualifying the bid of the Petitioner qua Tender
Notice Nos:13/T4/2025-26 dated 06.05.2025 as the
winning bid without following the due procedure of
law vide which the terms of the invitation to tender
were read in a tailor made manner to suit the
convenience of Respondent-5 as bad, manifestly
arbitrary and illegal and also In violation of Articles
14,19, 21 and 300A of Constitution of India and in
violation of the Tender Notice, and also in violation
of GO Ms No 94, I & CAD (PWW) Department Dt 01-
07-2003 & GO MS NO. 195 dated 10.05.1999 and
consequently direct the Respondents-1 to 4 herein to
consider the financial bid of the Petitioner qua
3
Tender Notice No 13/T4/2025-26 dated 06-05-2025;
and/or to pass such other order or orders as the
Hon'ble Court deems fit and appropriate as this ■
Hon'ble Court may deem fit and proper in the
circumstances of this case; and/or"
3. SUBMISSIONS OF THE WRIT PETITIONER:
Sri C. Kranthi Kumar, Ld. Counsel representing Sri Kasim Nagasaim,
Ld. Counsel for the Petitioner has submitted that the Superintendent Engineer,
Department of Rural Water Supply & Sanitation, Vijayawada (Respondent
No.2) had issued tender the Notice No.13/T4/2025-26 dated 06.05.2025 for
the work of 'Operation and Maintenance of CPWS scheme to Battinapadu and
34 other habitations for the year 2025 to 2026' with an Estimated Contract
Value (EMV) of Rs.63,61,806/- via e-procurement portal; and that as the Writ
Petitioner has executed similar works on the previous occasions, the Writ
Petitioner has participated in the present tender.
4. It is further submitted by the Ld. Counsel for the Writ Petitioner that the
Writ Petitioner found that the bid submitted by him was rejected when he had
opened the portal on 02.07.2025; that it is found that out of the three bids
submitted, only the bid of the Respondent No.5 is shown as qualified in the
technical round and the other two bids including the bid of the Petitioner was
shown as disqualified; that the bid of the Writ Petitioner was rejected in order
to provide illegal benefit to the Respondent No.5; that when the Writ Petitioner
had contacted the Official Respondent Nos. 1 to 4, he was told by Official
Respondent No.5 that the ground for rejection of the bid of the Writ Petitioner
was due to non-furnishing of Unique Document Identification Number (UDIN)
on the Annual Turnover Reports and the Balance sheets that were duly issued
by the Writ Petitioner's Chartered Accountant.
5. Ld. Counsel for the Writ Petitioner would contend that out of the three
bids, two bids, including the bid of the Writ Petitioner, stood disqualified only to
favour the Unofficial Respondent No.5; that the bidders were never informed
by the Respondent No.3 nor it is mentioned in the Tender conditions that the
4
mention of UDIN in the Annual Turnover Certificates and Balance Sheets was
never stipulated as a mandatory tender condition; that had it been mentioned
N
either by the Official Respondents or in the tender document, the Writ
Petitioner would have certainly furnished the UDIN; that when the technical
bid was opened, the Official Respondents ought to have informed the
Petitioner about the deficiency in submission of UDIN. Ld. Counsel for the
Writ Petitioner would therefore submit that the bid of the Writ Petitioner was
arbitrarily disqualified for the reasons stated above. Ld. Counsel for the Writ
Petitioner would submit that non-mention of UDIN along with the Annual Turn
Over and Balance Sheets as a tender condition would make the rejection of
the Writ Petitioner's bid as being arbitrary inasmuch as the tender conditions
must be specifically clear and precise and that all the tenderers should be
made aware of the scope and purport of the mandatory conditions. He would
submit that the absence of an express condition regarding furnishing of UDIN
in the Annual Turnover Reports and Balance Sheets should be considered in
favour of the Writ Petitioner.
6. Ld. Counsel for the Writ Petitioner has placed reliance on Para Nos. 34
to 38 of the Judgment rendered by the Hon'ble Supreme Court of India in
Reliance Energy Ltd. and another Vs. Maharashtra State Road
Development Corpn. Ltd. and Others; (2007) 8 SCO 1; and Para No.36 in
the case of the Siemens Public Communication Networks Private Limited
and Another Vs. Union of India and Others; (2008) 16 Supreme Court
Cases 215. Ld. Counsel for the Writ Petitioner has placed reliance on the
dictum in Reliance Energy Ltd.'s case on the preposition that the Official
Respondents should create a level playing field in order to buttress import of
Article 19 (1) (g) of the Constitution of India. Ld. Counsel for the Writ
Petitioner has also placed reliance in Siemens Public Communication
Networks Private Limited and Another's case on the preposition that the
tender conditions must be clear and without any ambiguity and that the Official
Respondents cannot read a new condition which never existed in the tender
document.
5
m
7. In the above premise, Ld. Counsel for the Writ Petitioner would contend
that the tender document never specified the compulsion of furnishing UDIN
along with Annual Turnover Reports and the Balance Sheets and therefore,
the Official Respondents ought not to have disqualified the Writ Petitioner in
the technical bid on the ground that the Writ Petitioner did not furnish the
UDIN along with the Annual Turnovers and the Balance Sheets.
8. Sri Panuku Rajesh Kumar, Ld. Asst. Government Pleader for the Official
Respondents and Sri P. Sai Surya Teja, Ld. Counsel representing the
Unofficial Respondent No.5, who was qualified in the technical bid have
submitted their arguments.
9. Sri P. Sai Surya Teja, Ld. Counsel appearing on behalf of the Unofficial
Respondent No.5 has placed reliance on Para Nos.77, 92 to 95 of the
Judgment rendered by the Hon'ble Apex Court in Tata Cellular Vs. Union of
India; (1994) 6 Supreme Court Cases 651 on the preposition that the Court
should be loathe in interfering in respect of the Government contracts and that
in contracts having commercial element, the Official Respondents must be
accorded reasonable amount of flexibility and 'play in the joints'.
10. With regard to the legal prepositions cited by the Ld. Counsel for the
Writ Petitioner and the Unofficial Respondent No.5, there is no dispute with
regard to the general preposition. However, the Court has to see whether the
said legal prepositions in the cases cited by the Ld. Counsel for the Writ
Petitioner would have any bearing on the facts of the present case or not?
ISSUE:
11. In the light of the above rival contentions, the following issue falls for
consideration before this Court:
Whether the requirement of providing UDIN by
the full-time Chartered Accountants for the documents
issued by them relating to Audit Reports etc., is
manifestly implicit in the Tender Conditions?
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12. ANALYSIS:
%
Admittedly, the facts are not in dispute. However, this Court has to see
whether the citing of the UDIN is a mandate which is manifestly implicit in the
Financial Data of the tender condition No. 11.10 such as audited Financial
Statements regarding the Annual Turnover and Balance Sheets. Mandatory
documents to be submitted along with the bid would include (at SI.No.6) the
Annual Turnover Certificates along with the Balance Sheets for the last five
years i.e., 2020-2021 to 2024-2025. The tender condition concerning the rule
of 'Financial Data' and 'Tender Condition No.11.10.Financial Standing are
usefully extracted hereunder:
FINANCIAL DATA:
The Bidder shall submit the financial data showing proof of
financial standing supported by audited financial statements
regarding the annual turnover, current liquid assets, past
experience, ability to mobilize financial resources on
reasonable terms, track record of the firm in having made
reasonable profits and qualifications and experience of the
financial management of technical personnel proposed to be
employed on the project. "
11.10. Financial standing:
The Bidder shall furnish audited financial statements for the
last five years, audited by a Chartered Accountant, which
Include Profit and Loss Account, Balance Sheet and
certificates regarding contingent liabilities. In case of any nil
statements, the same shall be certified accordingly by a
Chartered Accountant. The Bidder shall furnish the financial
statement for the previous financial year including liabilities.
Contingent liabilities and projects in progress (In case audited
statements are not available). If the Bidder is a Company,
audited annual reports of the financial years, from 2020-21 to
2024 - 2025 inclusive, along with the audit reports under the
Companies Act shall be furnished. In case of Bidders other
than companies, if the Turn over in any of one of the above
financial years exceeds Rs 40.00/- lakhs per annum, the
audited accounts along with the auditor certificates under
section 44 AB of the Income Tax act shall be furnished. In the
case of Bidders other than Companies, if the turnover in any of
the above financial years does not exceed Rs 40.00/-lakhs per
annum, the following certificate shall be given by a Chartered
Accountant for each year for the Profit and Loss Account and
7
the Balance sheet.
--as
on
for the
financial year ending and in our opinion
the said accounts give a true and fair view. The said Balance
Sheet and Profit and Loss Account are in agreement with the
books of accounts and returns produced and that we have
obtained all the information and explanations which to the best
of our knowledge and belief were necessary for the purpose of
the audit".
13.
In order to understand whether the furnishing of UDIN number as a
mandate that is manifestly implicit and indispensable for submission of the
Annual Turnover Certificates and the Balance Sheets, this Court is required to
examine the origin of 'UDIN'. The professional Regulatory Body in respect of
Chartered Accountants is the Institute of Chartered Accountants of India
(ICAI). This is a statutory professional Regulatory Body dealing with the
Chartered Accountants. The Council of ICAI, at its syG"" meeting, held on 17 th
and 18"^ December, 2018, had ordained to provide an 'Universal Verification
Mechanism' for documents signed by the Indian Chartered Accountants by
conceiving the Unique Document Identification Number (UDIN).
14. This mandate was implemented in a phased manner for full-time
Practicing Chartered Accountants as under:
(i) For all certificates, effective from 1®' February, 2019;
(ii) For all GST and Tax Audit Reports, effective from 1®' April,
2019; and
(iii) For all other Audits, Assurance, and Attestation functions,
effective from 1®* July, 2019.
15. A portal has been created by the Institute of Chartered Accountants of
India (ICAI). The relevant information for this case that is available on the
above portal is usefully extracted hereunder:
"The primary objective behind mandating UDIN is to *curb
malpractices* such as false certification by individuals
8
misrepresenting themselves as CAs and the forgery of CA
signatures. It aims to enhance trust and credibility in financial
reporting and helps regulatory bodies, banks, and financial
intermediaries verify the authenticity and genuineness of
documents issued by Chartered Accountants, supporting
their policy and decision-making processes.
Furthermore, the *Central Board of Direct Taxes (CBDT)*
integrated its e-filing portal with the 1CA! portal to validate
UDINs for Tax Audit Reports and other CA certification
forms. Since *27th April 2020*, quoting UDIN has been
mandatory for documents certified/attested in compliance
with the Income-tax Act, 1961. If a UDIN is not updated
within 15 calendar days of submitting an audit report or
certificate, the submission will be treated as invalid. If a UDIN
is revoked after acceptance by the taxpayer, the form
submitted with that UDIN becomes invalid.
Non-generation of UDIN for mandatory documents
constitutes *non-adherence to the Council Decision* and
may result in disciplinary proceedings as per the Second
Schedule Part II of The Chartered Accountants Act, 1949.
Detailed Briefing: Unique Document Identification
Number (UDIN)
This briefing provides a comprehensive overview of the
Unique Document Identification Number (UDIN) system,
established by The Institute of Chartered Accountants of
India (ICAI). It highlights the system's purpose, functionality,
and impact on Indian Chartered Accountants (CAs),
regulators, and other stakeholders, drawing directly from the
provided "FAQs on UDIN (5th Edition)" and the UDIN
website.
1. Introduction and Core Purpose of UDIN
The UDIN is an 18-digit, system-generated unique number
designed to enhance the authenticity and credibility of
documents signed or attested by full-time practicing
Chartered Accountants in India. Introduced by ICAI In 2019,
it Is described as "one of its kinds supplementing various
initiatives of ICAI in pursuit of transparent financial reporting
in India."
9
Key Objectives:
- Combating Malpractice: The primary objective is "to curb
the malpractices of certification by non-CAs by impersonating
themselves as CAs" and to counter "forgeries of signatures
of CA's that mislead the authorities and stakeholders."
(FAQs, Q3, Foreword to 3rd edition, Preface to 2nd edition).
- Ensuring Authenticity: UDIN provides a "universal
verification mechanism for ascertaining the authenticity of the
documents signed by Indian Chartered Accountants."
(Preface of 5th edition).
- Strengthening Trust: It has "acted as a catalyst in
augmenting the trust and degree of faith on to the
certification/attestation of any document by the Chartered
Accountants." (Foreword to 4th edition).
- Decision Support: Its utility has "leapfrogged from
instrument of verification to the instrument of decision
support." (Preface of 5th edition).
2. Mandatory Implementation and Scope
UDIN generation became mandatory for practicing CAs in a
phased manner in 2019:
-1st February 2019: For all Certificates.
-1st April 2019: For all GST and Tax Audit Reports.
- 1st July 2019: For all other Audit, Assurance, and
Attestation functions. (FAQs, Q5, Foreword to 1st edition).
Who Must Generate UDINs?
- "All Practicing CAs having full-time Certificate of Practice
(CoP) have to generate UDIN after registering themselves on
UDIN Portal." (FAQs, Q6).
- Members in industry and part-time CoP holders are not
allowed to generate UDINs. (FAQs, Q12, Q13).
Documents Requiring UDIN:
UDIN is required for any document or report signed "either
digitally or manually by a full-time practicing CA." (Preface to
10
' S'
A ■ .
1st edition). This includes a wide range of documents such
as:
\
- Certificates (e.g., Net Worth Certificates, Turnover
Certificates, certificates under LLP Act, Income-Tax Laws).
(FAQs, Chapter 4).
- GST and Tax Audit Reports (e.g.. Form 3CA, 3CB, 3CD,
Form 29B for MAT Audit). (FAQs, Chapters).
- Audit and Assurance Functions (e.g.. Statutory Audit
Reports, Concurrent/Internal Audit of Banks, Stock Audit,
Audit of Special Purpose Financial Statements). (FAQs,
Chapter 8).
Documents Not Requiring UDIN:
- Resignation of Auditor (FAQs, Q40).
- Non-Objection Certificate (NOC) from previous Auditor
(FAQs, Q41).
- Financial Statements not subject to Statutory Audit (FAQs
Q57).
- Consent letter & Certificate for appointment as Auditor
under the Companies Act, 2013 (FAQs, Q109).
- Attestation of Examination Form/Mark Sheet/Documents of
CA Students (FAQs, Q133).
3. UDIN Generation Process and Rules
- Registration: Practicing CAs with full-time CoP must
register on the UDIN Portal. (FAQs, Q7, Q14).
- Timing: UDIN is ideally generated "at the time of signing
the Documents."
Flowever, it can be generated "within 60 days... from the
signing of the same." This extension from 15 to 60 days,
effective from 17th September 2021, aligns with SQC-1 and
SA 230 on Audit Documentation. (FAQs, Q19, Preface to 3rd
edition, Annexure 6.1).
- Uniqueness: "Separate UDIN is required for- Uniqueness:
"Separate UDIN is required for each assignment and is to be
used for all documents Issued under that assignment."
(FAQs, Q42). For exampie,i one UDIN sufUces for a Bank
11
Audit Report, LFAR, and certificates if signed on the same
date, but a separate (JOIN is needed for the Tax Audit
Report. If certificates/reports are signed on different dates or
c
by different partners, separate UDINs are required (FAQs
Q79,Q81,Q82)."
16. The above information
on the portal of the Institute of Chartered
Accountants of India (ICAI) with regard to the UDIN number would clearly
indicate that every Certificate issued by the Chartered Accountants shall
consist of UDIN. It is also stated that the non-generating of UDIN for
mandatory documents constitutes non-adherence to the decision of the
Council and may result in disciplinary proceeding as per the second schedule
part-ll of the Chartered Accountants Act, 1949.
17.
The above extract would also indicate that the UDIN provides an
universal verification of document for ascertaining the authenticity of
documents singed by the Indian Chartered Accountants and the utility of UDIN
as 'leapfrogged from instrument of verification to the instrument of decision
support'. The primary object of UDIN, as mentioned on the portal, is to curb
the malpractices of certification by non-Chartered Accountants by
impersonating themselves as Chartered Accountants and to counter forgeries
of signatures of the Chartered Accountants that mislead the Authorities and
stakeholders.
18.
The ICAI has issued a Notification on 02.08.2019, which is usefully
extracted hereunder;
"The Institute of
Chartered Accountants of India
(set up by an Act of Parliament)
NOTIFICATION
New Delhi, 2 August, 2019
No. 1-CA(7)/192/2019.- Whereas, to curb the
malpractice of false certification/attestation by- the
unauthorized persons and to eradicate the practice of bogus
certificates and to save various regulators, banks,
stakeholders etc. from being misled, the Council of the
12
Institute decided to implement an innovative concept to
generate Unique Document Identification Number (UDIN)
mandatorily for all kinds of the certificates/GST and tax audit
reports and other attest function in phased manner, for which
members of the ICAI were notified through the various
announcements published on the website of
ICAI www.ical.orq at the relevant times.
Now, in exercise of the powers conferred on it under Item
No. (1) of Part- II of the Second Schedule to the Chartered
Accountants Act, 1949, the Council of the Institute of
Chartered Accountants of India hereby issue the following
guidelines for information of public and necessary
compliance by members of the Institute--
(i) A member of the Institute in practice shall generate Unique
Document Identification Number (UDIN) for all kinds of the
certification, GST and Tax Audit Reports and other Audit,
Assurance and Attestation functions undertakes/signed by
him which made mandatory from the following dates through
announcements published on the website of the
ICAI www.icai.orq at the relevant time:--
• For all Certificates w.e.f. 1 February, 2019.
• For all GST and Tax Audit Reports w.e.f 1 April, 2019.
• For all other Audit, Assurance and Attestation functions w.e.f
1 July, 2019.
(II) The above Guidelines shall come into force from the above
dates for the various services respectively.
RAKESH SEHGAL, Acting Secy.
[ADVT. m/4//Exty./170/19]".
19. The significance attached to UDIN is reflected from the portal of the
ICAI, thereby making it mandatory for every full-time practicing Chartered
Accountant in India to cite the UDIN for the documents relating to Audit and
Assurance functions that includes statutory audit reports, concurrent/internal
audit of banks and audit of special purpose financial statements etc., and also
certificates reflecting Net Worth, Annual Turnover and Income Tax laws.
Since it is made mandatory to every Chartered Accountant to cite UDIN and
for every document issued by him or her as mentioned herein above, it has to
be inferred that the mandate to produce the documents with UDIN is
manifestly implicit in the tender condition and need not specially be mentioned
as a tender condition.
13
20.
The above opinion of the Court is fortified by the Judgments of the
Division Benches rendered by the High Court of Uttaranchal (Uttarakhand) and
the High Court of Allahabad. In Patelpurta Agro Farm \/s. State of
Uttarakhand and Others; 2023 SCO Online Utt 2230: AIR 2023 Utt 125
(W.P (M/S) No.813 of 2023, decided on 24.05.2023), the Division Bench of
High Court of Uttaranchal (Uttarakhand) held as under:
"5. The aforesaid would show that the bidders were required
to provide their audited balance-sheet and profit and loss
account statement, and a certificate issued by the Chartered
Accountant to establish their turnover of Rs. 5.00 Crores
average overpast three years.
6. The petitioner states that, along with its tender, the
petitioner provided the Tax Audit Reports in Forms 3CB and
3CD, which were signed by the petitioner's Director, apart
from the Chartered Accountant.
7. According to the petitioner, the Tax Audit Reports, which
were duly filed along with the income tax returns by the
petitioner, were submitted along with the petitioner's bids.
These Tax Audit Reports also contain the bal ance-sheets as
on 31.03.2022 (Assessment Year 2022-2023), 31.03.2021
(Assessment Year 2021-2022), and 31.03.2020 (Assessment
Year 2020-2021).
8. Admittedly, the Tax Audit Reports, and consequently, the
balance-sheets and the profit and loss account for the
relevant years did not bear the UDIN. The petitioner has
placed on record the Chartered Accountant's certificate dated
08.12.2022, certifying the turnover of the petitioner from the
Financial Year 2018-2019 to 2021-2022, which bears the
UDIN.
9. xxxx
10.xXXX
11. We have considered the submissions of learned
counsels. The bidders were required to submit the audited
balance-sheet and profit and loss account statement, apart
from the Chartered Accountant's certificate to establish the
minimum turnover required of Rs. 5.00 Crores on an average
for the post three years. The Technical Evaluation
Committee which evaluates the bids of all the bidders
undertakes the said exercise by sitting In Its office. The
Technical Evaluation Committee, therefore, is entitled to
require the bidders to submit duly authenticated documents,
which could be relied upon and verified, If necessary, from its
own office.
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12. The Technical Evaluation Committee is not expected to
run around and gather information from departments, such
as Income Tax Department, to verify the authenticity of the
documents filed by the bidders. Such an exercise, if required
to be undertaken by the Technical Evaluation Committee,
would impede the process of the tenders and defeat the very
purpose of tendering the works, which will generate revenue
for the State.
13. The notification dated 02.08.2019 clearly sets out the
purpose of Its issuance, and the reason for evolution of the
UDIN mechanism. The Tax Audit Reports are mandatorlly
required to have the Unique Document Identification Number
in the light of the aforesaid notification. The Tax Audit
Reports, placed on record by the petitioner, do not have the
UDIN.
14. That being the position, the Technical Evaluation
Committee was justified in not relying on the same, since the
authenticity of the Tax Audit Reports, produced by the
petitioner along with the bids, could not be verified and
established.
15. Consequendy, in our view, the rejection of the petitioner's
technical bids on the ground that the Tax Audit Reports did
not bear the UDIN appears to be completely justified, and
therefore, there is no merit in these petitions. For the
aforesaid reasons, the writ petitions are dismissed.
"
21. The Hon'ble High Court of Allahabad also had the occasion to deal with
the implicit mandate of UDIN while submitting the tender documents. In M/s.
Arth Enterprises and another Vs. State of U.P and 3 others; 2024: AHC:
7140-DB, the Hon'ble High Court of Allahabad held in Para Nos. 6 and 7 is
usefully extracted hereunder:
"6. It is not in issue that the contract was Invited on
GeM portal and the conditions stipulated in the bid document
had to be scrupulously met. The bid document referred to
submission of turnover certificate by the Chartered
Accountant. The insistence on part of the authority for only
such certificate to be considered of the Chartered Accountant
which had Unique Document Identification Number
apparently is consistent with the statutory notification issued
on 2.8.2019. The Chartered Accountant, who has issued the
certificate to the petitioner is clearly bound by the notification
dated 2.8.2019.
15
7. We find no error in the decision of the respondents in not
considering the petitioner's technical bid if the certificate was
not in accordance with the statutory guidelines issued by the
\
Institute of Chartered Accountants of India. It is otherwise the
case of the respondents that apart from the petitioner, all
others whose technical bid suffered from the same infirmity
have been non-suited. The action of the authority, therefore,
is found to be consistent and the discarding of petitioner's
technical bid cannot be said to be arbitrary. This Court is also
informed that GeM portal is an online format to facilitate
award of contract, on objective criteria, and the entire
process is transparent with minimal human intervention.
"
22. This apart, in pursuance of the Notification of the ICAI, in the year 2019
the mandatory practice of mentioning of UDIN has been in vogue since 2019
and therefore, this practice had been followed in respect of the every Tender
Notification. In fact, the cases referred herein rendered by the Division
Benches of the Hon'ble High Court of Allahabad and Uttarakhand have been
decided in the years 2023 and 2024, which clearly indicate that all the full-time
Chartered Accountants across the nation have 'adapted to' and 'adopted' this
mandatory practice. Therefore, it does not lie in the mouth of the Writ
Petitioner to contend that he was not aware of this indispensable practice,
particularly in the light of the fact that the said Writ Petitioner is a seasoned
Civil Contractors as stated in the Para-3 of the Affidavit filed in support of the
Writ Petition.
23. In the above premise, this Court is of the considered opinion that the
requirement of mentioning the UDIN is manifestly implicit in the Tender
Conditions and it is indispensable. Therefore, the rejection of the bid of the
Writ Petitioner for non-mentioning of UDIN in the Annual Turnover Certificates
and the Balance Sheets is neither discriminatory nor illegal or arbitrary.
Therefore, the present Writ Petition is devoid of any merit and is liable to be
dismissed.
24. Accordingly, this Writ Petition is dismissed. No order as to costs.
16
25. Interlocutory Applications, if any, stand closed in terms of this order.
Sd/- N. NAGAMMA
//TRUE COPY//
ASSISTANT REGISTRAR
'section officer
One fair copy to the Hon'ble SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD
(For His Lordships Kind Perusal)
To,
1. One CC to Sri. Kasim Nagasaim Advocate [OPUC]
2. One CC to Sri. Sai Surya Teja Advocate [OPUC]
3. One CC to Sri. Y Koteswara Rao SC for ZPP, MPP and GP [OPUC]
4. 9 LR Copies
5. The Under Secretary, Union of India, Ministry of Law, Justice and
Company Affairs, New Delhi.
6. The Secretary, A.P Advocates' Association Library, High Court
Buildings, Amaravathi.
7. Two CCs to GP for Panchayat Raj Rural Dev, High Court of Andhra
Pradesh [OUT]
8. Two CCs to GP for Irrigation and CAD, High Court of Andhra Pradesh
[OUT]
9. Two CD Copies
HIGH COURT
DATED:17/07/2025
ORDER
WP NO. 16902 OF 2025 DISMISSING THE WP WITHOUT COSTS