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Karnataka High Court

M/S Techser Power Solutions Pvt Ltd vs Government E Marketplace (Gem Portal) on 30 April, 2026

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                                                   NC: 2026:KHC:24460
                                                 WP No. 7649 of 2026


             HC-KAR




                  IN THE HIGH COURT OF KARNATAKA AT BENGALURU
                       DATED THIS THE 30TH DAY OF APRIL, 2026
                                      BEFORE
             THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
                      WRIT PETITION NO. 7649 OF 2026 (GM-RES)
             BETWEEN:

             1.    M/S TECHSER POWER SOLUTIONS PVT LTD
                   A COMPANY REGISTERED UNDER THE
                   PROVISIONS OF COMPANIES ACT, 1956
                   HAVING ITS REGISTERED OFFICE AT
                   TECHSER HOUSE 12/1
                   MES RING ROAD
                   5TH CROSS, SHARADAMBANAGAR
                   BANGALORE - 560 013.
                   REPRESENTED BY ITS DIRECTOR

             2.  MR. M SURESH
                 S/O K.B. MAHADEVA RAO
                 AGED ABOUT 67 YEARS
                 DIRECTOR
Digitally        M/S TEACHSER TOWER SOLUTIONS PVT LTD
signed by        OFFICE AT TEACHSER HOUSE 12/1
CHAITHRA A
                 MES RING ROAD, 5TH CROSS, SHARADAMBANAGAR
Location:        BENGALURU - 560 013.
HIGH
COURT OF                                             ...PETITIONERS
KARNATAKA    (BY SRI. MANU KULKARNI, ADVOCATE FOR
                 SRI. DEVARAJA L, ADVOCATE)

             AND:

             1.    GOVERNMENT E MARKETPLACE (GEM PORTAL)
                   2ND FLOOR JEEVAN TARA BUILDING
                   5-SANSAD MARG, NEAR PATEL CHOWK
                   NEW DELHI - 110 001.
                   REPRESENTED BY ITS
                   CHIEF EXECUTIVE OFFICER.
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                                        WP No. 7649 of 2026


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2.   MINISTRY OF COMMERCE AND INDUSTRY
     DEPARTMENT OF COMMERCE
     VANIJYA BHAVAN, NEW DELHI - 110 011.
     REPRESENTED BY ITS
     PRINCIPAL SECRETARY

                                             ...RESPONDENTS
(BY SRI. ARAVIND KAMATH, ASG FOR
    SRI. MUKUND PRASAD, CGSC)

     THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO
QUASH THE ORDERS DATED 17.02.2026 PASSED BY THE
RESPONDENT NO. 1 SUSPENDING THE PETITIONER NO. 1 AS
TEMPORARY MORATORIUM FROM 17.02.2026 TO 03.04.2026
IN RESPECT PETITIONER NO.1 PRODUCT BEARING ID
NO.5116877- 86711385086-CAT (ANNEXURE-A), IN RESPECT
PETITIONER NO.1 PRODUCT BEARING ID NO.5116877-
83599923008-CAT (ANNEXURE-A1), IN RESPECT PETITIONER
NO.1 PRODUCT BEARING ID NO.5116877-93655256193-CAT
(ANNEXURE-A2), IN RESPECT PETITIONER NO.1 PRODUCT
BEARING ID NO.5116877-56637869694-CAT (ANNEXURE-A3),
IN RESPECT PETITIONER NO.1 PRODUCT BEARING ID
NO.5116877-14510235917-CAT (ANNEXURE- A4) AND IN
RESPECT   PETITIONER   NO.1   PRODUCT   BEARING   ID
NO.5116877-76093577816-CAT (ANNEXURE-A5) AND ETC.

     THIS WRIT PETITION HAVING BEEN HEARD AND
RESERVED FOR ORDERS ON 08.04.2026, THIS DAY ORDER
WAS PRONOUNCED THEREIN, AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

                        CAV ORDER


      The captioned writ petition is filed calling in question

the order dated 17.02.2026 passed by respondent No.1,

whereby the petitioner-company has been subjected to a
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temporary moratorium from 17.02.2026 to 03.04.2026 in

respect of six products listed on the Government e-

Marketplace (GeM) portal.


     2.   The facts leading to the case are as under:


     Petitioner No.1 is a company registered as a seller on

the GeM portal and is stated to be an Original Equipment

Manufacturer   (OEM)    dealing   in   power   conditioning

products, particularly UPS systems, besides acting as a

reseller of batteries, IT and telecom solutions. It is

asserted that the petitioners execute orders exceeding ₹1

Crore on a monthly basis.


     3.   The grievance of the petitioners arises out of

repeated actions initiated by respondent No.1 on account

of the use of the expression "buyback" in product titles

uploaded by the petitioners. The first instance relates to a

product uploaded on 10.09.2024 titled "Exide EL 150

WITH BUYBACK OF OLD BATTERY", which, after due

verification, came to be approved and listed by respondent
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No.1. However, on 15.12.2025, the said listing was

flagged on the ground that the term "buyback" was

reflected in the product specification. The             petitioner

responded      on   20.12.2025      and    sought   deletion.   A

temporary moratorium was imposed from 20.12.2025 to

19.01.2026.


      4.      The second instance pertains to another listing

dated 18.05.2024, titled "Exide EL 150 WITH BUYBACK",

which was similarly approved at the initial stage but later

flagged on 20.01.2026 for the very same reason. The

petitioner replied on 29.01.2026 explaining the usage of

the   term.    Notwithstanding   the      same,   the   impugned

moratorium from 17.02.2026 to 03.04.2026 came to be

imposed.


      5.      It is further borne out from the record that on

the very same day, i.e., 17.02.2026, the petitioner's

account has been subjected to similar moratorium orders
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in respect of five additional products (Annexures A1 to

A5), all arising out of the identical allegation.


     6.    Learned    counsel    for   the    petitioners   would

contend that the products were duly verified and approved

before listing and that the alleged violation is at best

technical and classified as a "mild violation". It is further

contended that repeated imposition of moratorium is

arbitrary and disproportionate.


     7.    Per contra, learned ASG appearing for the

respondents would submit that the action is taken strictly

in terms of the GeM Incident Management Policy and that

the petitioner has indulged in repeated non-compliance

despite prior notifications, thereby justifying the impugned

action. It is also contended that an appellate remedy is

available under Clause 8 of the policy.


     8.    Heard learned counsel for the petitioners and

learned ASG appearing for the respondents. Perused the

records. The question that arises for consideration is:
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            "Whether the impugned orders imposing
     temporary     moratorium         warrant   interference
     under Article 226 of the Constitution of India?"




     9.     It is trite that the existence of an alternate

remedy is not an absolute bar to the exercise of

jurisdiction under Article 226. However, equally, it is well-

settled that this Court would be slow to interfere in

matters    involving   policy   enforcement       and   regulatory

discipline, unless the action is shown to be manifestly

arbitrary, disproportionate, or without jurisdiction.


     10.    On perusal of the material on record, it is not in

dispute that the petitioners had repeatedly used the

expression "buyback" in the product titles, which was

found to be inconsistent with the cataloguing requirements

of the GeM portal. The records would further indicate that

the petitioners were notified of the defect in earlier

instances; the petitioners were afforded an opportunity to
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rectify the listings; and, despite such notifications, similar

infractions continued across multiple products.


     11.   The contention of the petitioners that the

listings were initially approved cannot, in the considered

view of this Court, absolve them of their continuing

obligation to comply with platform policies. Approval at the

initial stage does not confer a perpetual immunity against

subsequent scrutiny, particularly when the defect relates

to standardization and catalog discipline, which lies at the

core of the GeM framework.


     12.   The   GeM      portal    is   a    structured   public

procurement platform intended to ensure uniformity,

transparency, and comparability of products. The insertion

of expressions such as "buyback" in product titles, which

are not part of standardized specifications, introduces

ambiguity and conditionality, thereby defeating the very

object of the platform.
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      13.   It is true that the respondents have classified

the   violation   as   a   "mild    violation".   However,   the

classification of the nature of violation cannot be viewed in

isolation. The frequency and repetition of the violation is a

relevant factor. A singular or isolated infraction may

warrant only a warning; however, repeated infractions,

despite notice, would justify escalation of action under the

policy framework.


      14.   In the present case, the material placed on

record clearly indicates that the petitioners have been

repeatedly flagged for the same violation, yet the non-

compliance has persisted across multiple product listings.

Therefore, the impugned action cannot be said to be

disproportionate merely on the ground that the violation is

categorized as mild.


      15.   The temporary moratorium imposed is time-

bound and does not amount to permanent debarment. It

operates as a regulatory measure to ensure compliance
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and discipline among sellers on the platform. In that view

of the matter, a 30-day moratorium, in the backdrop of

repeated infractions, cannot be said to be so excessive or

arbitrary as to warrant interference under Article 226.


     16.   The contention relating to civil consequences,

though not insignificant, cannot override the necessity of

maintaining integrity of the procurement process. A

balance has to be struck between individual commercial

interest and systemic discipline. The impugned action, in

the considered view of this Court, leans in favour of

maintaining such discipline.


     17.   Insofar   as   the    availability    of   an    alternate

remedy is concerned, though this Court has examined the

matter on merits, it is also evident that the GeM Incident

Management Policy provides for an appellate mechanism,

which the petitioners have not availed.


     18.   Having    regard     to    the   aforesaid      facts   and

circumstances, this Court is of the considered view that
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the petitioners were found guilty of repeated infractions;

the petitioners continued non-compliance despite prior

notifications and       therefore impugned action is regulatory,

time-bound, and proportionate in the facts of the case.

Accordingly, no case is made out for interference.


      19.   For the foregoing reasons, this Court proceeds

to pass the following:


                               ORDER

(i) The writ petition stands dismissed;

(ii) The impugned orders dated 17.02.2026 imposing temporary moratorium are upheld.

(iii) All pending interlocutory applications, if any, stand disposed of.

Sd/-

(SACHIN SHANKAR MAGADUM) JUDGE CA List No.: 1 Sl No.: 3