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Andhra Pradesh High Court - Amravati

Vikram Book Links Private Limited vs The State Of Ap on 6 May, 2025

     IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI
                          (Special Original Jurisdiction)

                     TUESDAY, THE SIXTH DAY OF MAY
                     TWOTHOUSAND AND TWENTY FIVE                      ^

                                        PRESENT


 THE HON'BLE SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD

                      WRIT PETITION NO: 5435 OF 2025

Between:


  1. M/s.   Vikram       Book   Links    Private   Limited,    Rep.by.     its   Authorised

     Representative, CIN. U22219AP2008PTC057907,     Plot.No.1-12,
     Ramaswamy Towers, YSR Inner Ring Road, 0pp. Ajithsingh Nagar
     Area, Vijayawada, NTR District, AP - 520015.
  2. R.Srinivas Vikram, S/o. Ravikrindi Ramaswamy, Age 45 Years, Occ:
     Authorised Representative - Cum - ChiefExecutive officer. M/s. VIKRAM
     BOOK LINKS PRIVATE LIMITED, Office at Plot.No.1-12, Ramaswamy
     Towers, YSR Inner Ring Road, 0pp.                        Ajithsingh     Nagar Area,
     Vijayawada, NTR District, AP - 520015.

                                                                         ...PETITIONERS

                                          AND


  1. The State of AP, Rep.by its Principal Secretary, Department of School
     Education, Secretariat Buildings, Velagapudi Village, Tullur Mandal-
     Guntur Distric Andhra Pradesh.


  2. The    Commissioner        of   School     Education,     Department        of   School

     Education, Andhra Pradesh, D.No.398/3, Vidya bhavan, Venkatadiri
     towers, Atmakur(V) Mangalagiri(M), Guntur District -522503.

  3. The     Director,     Andhra       Pradesh    Government        Textbook         Press,
     Department of School Education, Andhra Pradesh 5th Floor, Vidhya
     Bhavan, Atmakuru, Mangalagiri, Guntur Disrict, Andhra Pradesh.

  4. E-Procurement Department, IT, E and C, Department, Represented by
     its Director, Secretariat Buildings, Velagapudi, Amaravati Guntur
     District.
                                                                                ...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 or order or direction more particularly one in the
nature     of Writ     of    MANDAMUS         i.     Declaring        the      impugned      Tender

Notification     Rc.No.109/T2/2025            dated           18.02.2025        issued      by   the
Respondent/s herein is illegal, Arbitrary, violative of principles of natural
justice. Contrary to the A.P.Financial Code and General Financial Rules
(GFR), 2017 apart from Article 14,19(1 )(g) and 21 of the Constitution of
India,    1950   and        Consequently,     to         set-aside/quash         the   Notification

Rc.No.109/T2/2025 dated             18.02.2025. ii. Declaring that the failure to
conduct      a   pre-bid      meeting    in        the        impugned      tender       notification
Rc.No.109/T2/2025           dated   18.02.2025           is   violation   of   the principles of
natural justice, transparency and fair competition in public procurement
and consequently, direct the respondents to hold a pre-bid meeting and
allow bidders to submit revised bids after addressing their concerns. AND
consequently direct the Respondent Authorities to ensure to have wider
participation at par with the neighbouring states while having sufficient
securities in place in order to achieve affordable education and fair and
transparent policy to keep majority of the series publishers within the zone
of eligibility so as to have timely and effective supply of books to the needy
students.                                                                                               ^


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 STAY on the operation                           of the tender         Notification

Rc.No.109/T2/2025 dated 18.02.2025 issued by the Respondent/s herein.
 lA NO: 2 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 direct the Respondent/s herein to consider the          Petitioner/s

objections raised through representations dated 05.02.2025 & 21.02.2025
and pass speaking order/s forthwith.

Counsel for the Petitioner: SRI TAGORE YADAV YARAGORLA

Counsel for the Respondents: GP FOR SCHOOL EDUCATION

The Court made the following: ORDER
 APHC010102442025

                     IN THE HIGH COURT OF ANDHRA PRADESH
                                      AT AMARAVATI                          [3328]
                               (Special Original Jurisdiction)

                     TUESDAY ,THE SIXTH DAY OF MAY
                     TWO THOUSAND AND TWENTY FIVE

                                     PRESENT

  THE HONOURABLE SRI JUSTICE GANNAMANENI RAMAKRISHNA
                                      PRASAD

                      WRIT PETITION NO: 5435 OF 2025

Between:


  1.VIKRAM   BOOK   LINKS  PRIVATE   LIMITED, REP.BY.    ITS
   AUTHORISED REPRESENTATIVE, CIN. U22219AP2008PTC057907,
   PLOT.NO.1-12, RAMASWAMY TOWERS, YSR INNER RING ROAD,
   OPP. AJITHSINGH NAGAR AREA, VIJAYAWADA, NTR DISTRICT, AP
    -520015.


  2..R.SRINIVAS VIKRAM, , S/O. RAVIKRINDI RAMASWAMY,                     AGE 45
    YEARS,         OCC    AUTHORISED          REPRESENTATIVE             CUM
    CHIEFEXECUTIVE             OFFICER. M/S. VIKRAM BOOK LINKS PRIVATE
    LIMITED, OFFICE AT PLOT.NO.1-12, RAMASWAMY TOWERS, YSR
    INNER RING     ROAD,  OPP.   AJITHSINGH   NAGAR  AREA,
    VIJAYAWADA, NTR DISTRICT, AP - 520015.

                                                                 ...PETITIONER(S)

                                        AND


  1.THE      STATE       OF    AP,   REP.BY   ITS   PRINCIPAL       SECRETARY,
    DEPARTMENT            OF     SCHOOL       EDUCATION            SECRETARIAT

    BUILDINGS,       VELAGAPUDI VILLAGE,            TULLUR MANDAL-GUNTUR
     DISTRIC ANDHRA PRADESH.

  2.THE COMMISSIONER OF SCHOOL EDUCATION, DEPARTMENT OF
    SCHOOL EDUCATION, ANDHRA PRADESH,    D.NO.398/3, VIDYA
     BHAVAN, VENKATADIRI TOWERS, ATMAKUR(V) MANGALAGIRI(M),
    GUNTUR DISTRICT -522503.
                                            2




     3.THE DIRECTOR, ANDHRA PRADESH GOVERNMENT TEXTBOOK
      PRESS,      DEPARTMENT          OF       SCHOOL   EDUCATION,        ANDHRA
      PRADESH     5TH FLOOR, VIDHYA BHAVAN, ATMAKURU,
      MANGALAGIRI, GUNTUR DISRICT, ANDHRA PRADESH.
     4.EPROCUREMENT DEPARTMENT, IT, E AND C, DEPARTMENT
      REPRESENTED BY ITS DIRECTOR. SECRETARIAT BUILDINGS
      VELAGAPUDI, AMARAVATI GUNTUR DISTRICT.
                                                            ...RESPONDENT(S):

Counsel for the Petitioner(S);

     1 .TAGORE YADAV YARAGORLA

Counsel for the Respondent(S):

     1 GP FOR SCHOOL EDUCATION


The Court made the following ORDER;


       Heard Sri Y. Tagore Yadav, Ld. Counsel for the Writ Petitioners and Sri

G. Rama Chandra Rao, Ld. Government Pleader for Education                   for the


Responents.


2.     The present Writ Petition is filed seeking the following relief:

                "It is humbly prayed that this Hon'ble Court may
                be pleased to issue a Writ or order or direction
                more particularly one in the nature of Writ of
                Mandamus:

                     /.   Declaring   the .■ impugned   Tender
                     Notification Rc.No.109/T2/2025 dated
                     18.02.2025      issued     by    the

                     Respondent/s      herein   is   illegal,
                     Arbitrary, violative of principles of
                     natural justice. Contrary to the A.P.
                      Financial Code and General Financial
                      Rules (GFR), 2017 apart from Article
                      14, 19 (1)(g) and 21 of the Constitution
                      of India, 1950 and Consequently, to
                                        3




                   set-aside/quash         the       Notification
                   Rc.No. 109/T2/2025 dated 18.02.2025;

                   a. Declaring that the failure to conduct
                   a pre-bid meeting in the impugned
                   tender notification Rc.No.109/T2/2025
                   dated 18.02.2025 is violation of the
                   principles     of       natural       justice,
                   transparency and fair competition in
                   public procurement and consequently,
                   direct the respondents to hold a pre-bid
                   meeting;

                   Hi. and allow bidders to submit revised
                   bids after addressing their concerns.

              AND consequently direct the Respondent
              Authorities to ensure to have wider participation
              at par with the neighbouring states while having
              sufficient securities in place in order to achieve
              affordable education and fair and transparent
              policy to keep majority of the serious publishers
              within the zone of eligibility so as to have timely
              and effective supply of books to the needy
              students AND/OR to pass such other order or
              orders as this Hon'ble court may deem fit and
              proper in the interest of justice."


The facts as presented by the Writ Petitioner are that:

3.    The Writ Petitioners are the Printers and Suppliers of the Textbooks to

various State Governments. The Writ Petitioner No.1, through Writ Petitioner

No.2, had been printing and supplying the Textbooks to the Department of

Education for supply of Textbooks to the schools in the state.

4.    The    Director,   Andhra   Pradesh        Government         Textbooks   Press

(Respondent No.3) has issued a Ten^eji^Notification bearing Notification vide

Rc.No.109/T2/2025, dated 18.02.2025 (Ex.P.1) calling for "Expression of
                                          4




Interest (Eol)" for Empanelment of Printers/Publishers/Book           Distributors of


Andhra Pradesh for printing and distribution of school textbooks/workbooks

(with paper) for sale component to the students studying in private schools for

the Academic Years 2025-2026 & 2026-2027.         The notable tender conditions


would include Clause-5 in Section-1 dealing with the 'Scope of Work'. Clauses

8 and 9 of Section-ll of the Tender Notification dated 18.02.2025 (Ex.P.1)


deals with supply of sample copies at the earliest point of time so that the

textbooks should be made available and also with regard to 'Annual Turnover'.

5.    In the original Tender Notification that was issued on 18.02.2025,

Clause 9 of Section-ll read as under:


                   "9.   ANNUAL TURNOVER: The annual turnover
              for submission of Expression of Interest (Eol) for
              Empanelment of the printers/publishers/Book
              distributors is Rs. 10.00 crores for each year for the
              last three financial years i.e., 2022-23, 2023-24 and
              2024-25. In support of this they have to submit the
              necessary documentary evidence (i.e., Xerox copies
              of the annual accounts) and audited statements
              certified by Charted Accountant with a valid UDIN
              Number etc.,"

6.    In the original Tender Notification that was issued        on     18.02.2025

Clause 14 of Section-ll read as under;



                  "14. The bidder who wish to participate in
              this tender should have an experience of
              minimum of two years in last three years i.e.,
              2022-23, 2023-24 and 2024-25 in printing and
              publicationof school books in Andhra Pradesh."
                                           5




        Within three days thereafter, a Corrigendum was issued on 20.02.2025

amending the Clause-9 of Section-ll. The Corrigendum that was issued on

20.02.2025 by amending the clause-9 reads as under:


                    "9. Annual Turnover: As per Tender Condition
                to point No.9. The annual turnover for submission of
                expression of Interest-(Eol) for empanelment of the
                printers/ publishers/book distributors is Rs.10 crores
                for each year for the last 3 financial years i.e. 2021-
                22, 2022-23 and 2023-24 for annual turnover and
                Income tax returns. "

8.      Another Corrigendum was also issued on 21.02.2025 by amending

Clause-14 of Section-!! in the original Tender Notification.      Amended Clause-


14 of Section-ll reads as under:


                    "The bidder who wishes to participate in this
                tender should have an experience of minimum of two
                years in last five years i.e., 2020-2021, 2021-2022,
                2022-23, 2023-24 and 2024-25 in printing,
                publication and distribution of school textbooks and
                workbooks in Andhra Pradesh"




SUBMISSIONS OF THE LD. COUNSEL FOR THE WRIT PETITIONERS:

9.      Sri Y. Tagore Yadav, Ld. Counsel for the Writ Petitioners has made the

following submissions:


9.1.    That the tender conditions as laid down by the Government of Andhra

Pradesh during the yesteryears had fixed a minimum turnover of five crores

during the last three financial years.        Whereas, Clause-9 of the Section-ll
Tender Notification had doubled the minimum turnover and made it as ten

crores for the last three financial years i.e., 2022-2023, 2023-2024 and 2024-

2025.
                                             6



  9.2.
          Prior to the issue of the Tender Notification on 18.02.2025, the Writ
  Petitioner No.1 had addressed
                                      a Letter dated 05.02.2025 (Ex.P.2) to the
  Director of School Education informing the Government that the price of the
  paper has got significantly reduced in the market from Rs.115 per kg to Rs.80

 per kg leading to a substantial decrease in the overall production cost.       It is

 also stated in the said Letter that considering this reduction, the per-page rate
 can be adjusted by 15% lower than the previously fixed rate, which would
 directly benefit the students by making the subject textbooks more affordable.
 It was also requested by the Writ Petitioners that this development of reduced

 cost of the paper may be factored-in while issuing the Tender Notification.
 9.3.
         The Writ Petitioner No.1 has also, addressed          another   Letter on

 24.02.2025 i.e., after the Tender Notification was issued on 18.02.2025 stating

that the Writ Petitioners were not invited for any discussion despite informing

the Government about the reduced cost of the paper.

9.4 .
         That up to the previous academic year (2024-2025) the eligibility criteria
for the bidders to participate in the Tender notification for supply of text books

was 'five crores' turnover per annum; whereas, the present Tender Notification
has fixed minimum turnover per annum as 'ten crores' atleast for two financial
years in the three previous financial years. Ld. Counsel would submit that this
condition is not only arbitrary, but has been tailor-made so as to exclude

certain bidders and to reduce the competition with a view to provide benefit to
certain bidders.
                                         7




9.5.   That the case of the Writ            Petitioners   may   be   considered   for


empanelment for the purpose of encouraging micro and small scale industries

which are registered with the National Small Industries Corporation Ltd

(NSIC). Since the Writ Petitioner No.1 is also a small scale industry, which is

registered with the NSIC, the Ld. Counsel for the Writ Petitioners would submit

that the modification of the condition that was prevailing during the

yesteryears i.e., the increase of the turnover from five crores to ten crores, is

highly arbitrary. Ld. Counsel for the Writ Petitioners has also taken this Court

through various clauses of the Tender Notification issued by the Government

of Telangana for the academic year 2024-2025.              He has also drawn the

attention of this Court to the Tender Notification issued by the Government of


Andhra Pradesh for the academic years 2023-2024, 2024-2025 (Ex.P.4). He

has drawn the attention of this Court to clause 19 of the Tender Condition of


the earlier Tender issued on 09-03-2023 for the academic years (2023-2024 &

2024-2025) to state that the five crores turnover was the minimum threshold

that was fixed.



9.6.   He would submit that the thresholds have been raised only with a view


to accommodate M/s. Vyjayanti Printers. However, M/s. Vyjayanti printers

have not been impleaded as a party Respondent in the present Writ Petition.

9.7.   The reason for increase of the turnover threshold from five crores to ten


crores was justified by the Official Respondents by stating that the suppliers

have defaulted in payment of Royalty in the earlier Tender Notifications for the

academic years 2023-2024 & 2024-2025.           It is stated by the Ld. Counsel for
                                         8




the Writ Petitioners that the reason shown by the Government of Andhra

Pradesh for increase of the turnover from five crores to ten crores due to the


defaults by the suppliers in payment of the Royalty to the Government is

factually incorrect. He would submit that several publishers were empanelled

during the academic years 2023-2024, 2024-2025, but not a single supplier

has defaulted the payment of Royalty to the Government of Andhra Pradesh.

COUNTER-AFFIDAVIT OF RESPONDENTS:


10.   The Official     Respondents have filed Counter-Affidavit. They have

contended in the Counter-Affidavit that fixation of the threshold of turnover by


increasing from five crores to ten crores is not arbitrary and inasmuch as the

Government has the right to fix the thresholds depending on the previous

experiences as well as to ensure seamless supply of Textbooks.               The


Government has also contended that no favoritism is shown to any one nor

are the Tender conditions tailor-made to favour some firms and to discriminate

certain other firms.     It was also stated in the Counter-Affidavit that the

threshold was raised for avoiding default in payment of royalty in the future.


SUBMISSIONS OF LD. GOVERNMENT PLEADER FOR EDUCATION:


11.   Sri Gurram Ramachandra Rao, Ld. Government Pleader for Education

would submit that the total number of bidders who had bidded in the present

Tender Notification are '13' in number.     He would submit that out of the '13'


bidders, '8' bidders were qualified in the technical bid.      Amongst the five

bidders who were not qualified in the technical bid, two bidders were not
                                        9



qualified on account of lack of turnover of ten crores and the other three

bidders were disqualified for other reasons.


11.1. He would also submit that not only the Writ Petitioners but also all the

other bidders were registered with NSIC and they all           possess   NSIC

Certificates, either under Micro Industries or Small Industries. He would also

submit that the Corrigendum dated 21.02.2025 is not arbitrary.      He would

submit that out of the 13 bidders, 12 bidders are qualified even without
applying the Corrigendum dated 21.02.2025.


11.2. Ld. Government Pleader for Education would also submit that while the

bidders are expected to have a minimum turnover of ten crores for 2 years out

of the last five years (as per the Corrigendum dated 21.02.2025), the Writ
Petitioners herein has a turnover of ten crores for the academic year 2023-

2024, but the Writ Petitioners does not have the ten crores turnover for the

financial years 2020-2021,2021-2022, 2022-2023 and 2024-2025.

12.   Ld. Counsel for the Writ Petitioners has placed on record the following

judgments:


         (1) Tata Cellular Vs. Union of India; (1994) 6 Supreme
         Court Cases 651. (Para Nos. 77, 79 and 80).

         (2) Small Scale Industrial Manufactures Association

         (Registered) Vs. Union of India and Others; (2021) 8
         see 511. (Para Nos. 73, 75, 81, 103).
                                            10



           (3) Reliance Energy Ltd. and another Vs. Maharashtra
           State Road Development Corpn. Ltd. And others;
           (2007) 8 see 1. (Para No.36)

           (4) Meerut Development Authority Vs. Association of
           Management Studies and Another; (2009) 6 see 171.
           (Para No.36).

          (5) New Horizons Limited and another Vs. Union of
          India and others; (1995) 1 SCC 478. (Para No. 17)
          (6) Raunaq International Ltd. Vs. I.V.R. eonstruction
          Ltd. and others;(1999) 1 see 492. (Para Nos.19 & 22)
13.   Sri Gurram Ramachandra Rao, Ld. Government Pleader has relied on

certain decisions and would contend that the aspects relating to the technical
bid cannot be judicially reviewed inasmuch as the Government has the

absolute right to fix its' own criteria.    He has also cited certain judgments

relating to the turnover to say that the employer has the right to fix the
turnover basing on its' past experiences and the smooth supply of the

goods/products in the future.


14.   Sri Gurram Ramachandra Rao, Ld. Government Pleader for Education

has referred to the following Judgments:

          (1)    Banshidhar eonstruction Private Limited Vs.
         Bharat eoking eoal Limited and Others; (2024) 10 SCC
         273.


         (2)    Tata Motors Limited Vs. Brihan Mumbai Electric
         Supply & Transport Undertaking (BEST) and Others;
         2023 see Online SC 671.
 pr                                          11




           (3) Galaxy Transport Agencies, Contractors, Traders,
           Transports and Suppliers Vs. New J.K. Roadways,
           Fleet Owners and Transport Contractors and Others;
           (2021) 16 see 808.

           (4) Central Coalfields Limited and another Vs. SII-SML
           (Joint Venture Consortium) and others; (2016) 8 SCC
           622.


           (5) Director of Education and Ors.,               Vs. Educomp
           Datamatics Ltd., and Ors.,;(2004) 4 SCC 19.

           (6) Michigan Rubber (India) Ltd., Vs. State of Karnataka
           and Ors.,; (2012) 8 SCC 216.

 15.   Insofar as the issue of technical bid is concerned, this Court is of the

 opinion that issue is squarely covered by the judgment of the Hon'ble Apex

 Court in Galaxy Transport Agencies, Contractors, Traders, Transports

 and Suppliers Vs. New J.K. Roadways, Fleet Owners and Transport

 Contractors and Others, (2021) 16 SCC 808. In Para Nos.                    14 to 19 the


 Hon'ble Apex court had analysed the nature of tender document and                   the


 dominant position of the Authority in prescribing the 'conditions' in the tender

 document. Para Nos. 14 to 19 are usefully extracted hereunder;


                  14. In a series of judgments, this Court has held that
                  the authority that authors the tender document is
                  the best person to understand and appreciate its
                  requirements, and thus, its interpretation should
                  not be second-guessed by a court in judicial
                  review proceedings.         In Afeons    Infrastructure
                  Ltd. V. Nagpur Metro Rail Corpn. Ltd. [Afeons
                  Infrastructure Ltd. v. Nagpur Metro Rail Corpn. Ltd.,
                  (2016) 16 SCC 818] , this Court held : (SCC p. 825,
                  para 15)
                                   12



         "15. IVe may add that the owner or the
         employer of a project, having authored the
         tender documents, is the best person to
         understand      and      appreciate     its
         requirements and interpret its documents.
         The constitutional courts must defer to this
         understanding and appreciation of the
         tender documents, unless there is mala
         fide or perversity in the understanding or
         appreciation or in the application of the
         terms of the tender conditions. It is
         possible that the owner or employer of a
         project may give an interpretation to the
         tender documents that is not acceptable to
         the constitutional courts but that by itself IS
         not a reason for interfering with the
         interpretation given."
                                   (emphasis supplied)
15. In
            the judgment          in Bharat        Coking    Coal
Ltd. u. AMR Dev Prabha [Bharat Coking Coal
Ltd. V. AMR Dev Prabha, (2020) 16 SCC 759], under
the heading 'Deference to authority's interpretation"
this Court stated: (SCC p. 776, paras 50-52)
     "50. Lastly, we deem It necessary to deal
     with another fundamental problem. It is
     obvious that Respondent 1 seeks to only
     enforce terms of the NIT. Inherent in such
     exercise is interpretation of contractual
    terms. However, it must be noted that
    judicial interpretation of contracts in
    the sphere of commerce stands on a
    distinct footing than while interpretina
    statutes.

    51. In the present facts, it is clear that
    BCCL and Cl-India have laid recourse to
    clauses of the NIT, whether It be to justify
    condonation of delay of Respondent 6 in
    submitting performance bank guarantees
    or their decision to resume auction on
    grounds of technical failure. BCCL having
    authored these documents,                 is    better
    placed to appreciate their requirements
    and interpret them. (Afcons Infrastructure
    Ltd. V. Nagpur    Metro    Rail    Corpn.
    Ltd. [Afcons Infrastructure Ltd. i/. Nagpur
    Metro Rail Corpn. Ltd., (2016) 16 SCC
    818], SCC para 15)
                                13



     52.       The      High         Court          [Amr-Dev
     Prabha u. Union       of       India,     2018     SCC
    OnLine Jhar 2708] ought to have deferred
    to this understanding, unless it was
    patently perverse or mala fide. Given how
    BCCL's interpretation of these clauses
    was plausible and not absurd, solely
    differences in opinion of contractual
    interpretation ought not to have been
    grounds for the High Court to come to
    a finding that the appellant committed
     illegality."
                                             (emphasis supplied)

16. Further, in the recent judgment in Silppi
Constructions Contractors v. Union of India [Silppi
Constructions Contractors v. Union of India, (2020)
16 SCC 489] , this Court held as follows : (SCC pp.
502-503, para 20)
     "20. The essence of the law laid down
     in the judgments referred to above is
     the exercise of restraint and caution;
     the need for overwhelming public
     interest to Justify Judicial intervention
     in matters of contract involving the
     State     instrumentalities;             the     courts
     should give way to the opinion of the
     experts unless the decision is totally
     arbitrary or unreasonable; the court
     does not sit like a court of appeal over
     the appropriate authority; the court
     must realise that the authority floating
     the tender is the best Judge of its
     requirements     and,    therefore,  the
     court's         interference            should       be
     minimal. The authority which floats the
     contract or tender, and has authored
     the tender documents is the best Judge
     as to how the documents have to be
     interpreted. If two interpretations are
     possible then the interpretation of the
     author must be accepted. The courts
     will    only   interfere     to   prevent
     arbitrariness, irrationality, bias, mala
     fides or perversity. With this approach
     in mind we shall deal with the present
     case. "
                                             (emphasis supplied)
                                  14




17. In accordance with these judgments and noting
that the interpretation of the tendering authority in
this case cannot be said to be a perverse one, the
Division Bench ought not to have interfered with it by
giving its own interpretation and not giving proper
credence to the word "both" appearing in Condition
31 of the NIT. For this reason, the Division Bench's
[New J.K. Roadways v. State (UTofJ&K), 2020 SCC
OnLine J&K 733] conclusion that J.K. Roadways i^'as
wrongly declared to be ineligible. Is set aside.

18. Insofar as Condition 27 of the NIT prescribing
work experience of at least 5 years of not less than
the value of Rs 2 crores Is concerned, suffice it to
say that the expert body, being the Tender Opening
Committee, consisting of four members, clearly found
that this eligibility condition had been satisfied by the
appellant before us. Without therefore going into the
assessment of the documents that have been
supplied to this Court, It is well settled that unless
arbitrariness or mala fide on the part of the tendering
authority is alleged, the expert evaluation of a
particular tender, particularly when it comes to
technical evaluation. Is not to be second-guessed by
a writ court. Thus, in Jagdish Mandal v. State of
Orissa [Jagdish Mandal v. State of Orissa, (2007) 14
SCC 517], this Court noted : (SCC pp. 531-32, para
22)
      "22.   Judicial    review           of    administrative
      action is intended to prevent arbitrariness.
      Irrationality, unreasonableness, bias and
      mala fides. Its purpose Is to check whether
      choice or decision is made "lawfully" and
      not to check whether choice or decision is
      "sound". When the power of]udicial review
      is invoked in matters relating to tenders or
      award of contracts, certain special
      features should be borne in mind.                     A
      contract          IS            a           commercial
      transaction. Evaluating                  tenders    and
      awarding contracts      are essentially
      commercial functions. Principles of equity
      and natural ]ustice stay at a distance. If
      the decision relating to award of contract
      Is bona fide and is in public interest, courts
      will not, in exercise of power of judicial
      review, interfere even if a procedural
      aberration   or    error    in       assessment      or
      prejudice to a tenderer. Is made out. The
      power of judicials jsview will not be
                          15



    permitted to be invoked to protect private
    interest at the cost of public interest, or to
    decide contractual disputes. The tenderer
    or contractor with a grievance can always
    seek damages in a civil court. Attempts by
    unsuccessful    tenderers          with   Imaginary
   grievances, wounded pride and business
   rivalry, to make mountains out of molehills
   of some technical/proceduralviolation or
   some prejudice to self, and persuade
   courts to interfere by exercising power of
   judicial review, should be resisted. Such
    interferences, either interim or final, may
    hold up public works for years, or delay
    relief and   succour      to       thousands      and
    millions and may increase the project cost
    manifold.    Therefore,        a     court    before
    interfering in tender or contractual matters
    in exercise of power of judicial review,
    should pose to itself the following
    questions:
    (i) Whether the process adopted or
    decision made by the authority is mala fide
    or intended to favour someone;
                          OR

    Whether the process adopted or decision
    made Is so arbitrary and irrational that the
    court can say.'the decision is such that no
    responsible authority acting reasonably
    and in accordance with relevant law could
    have reached';
    (ii) Whether public interest is affected.
    If the answers are in the negative, there
    should be no interference under Article
    226. Cases involving blacklisting or
    imposition of penal consequences on a
     tenderer/contractor or distribution of State
     largesse (allotment of sites/shops, grant of
     licences,   dealerships           and    franchises)
     stand on a different footing as they may
     require a higher degree of fairness in
     action. "

                                         (emphasis supplied)
19. Similarly, in Montecarlo Ltd. v. NTPC [Montecarlo
Ltd. V. NTPC, (2016) 15 SCC 272], this Court stated
as follows : (SCC p. 288, para 26)
       "26. We respectfully concur with the
     aforesaid   statement     of law.           We   have
                            16




 reasons to do so. In the present scenario,
 tenders are floated and offers are invited
 for highly complex technical subjects. It
 requires understanding and appreciation
 of the nature of work and the purpose it is
 going to serve. It is common knowledge in
 the competitive commercial field that
 technical bids pursuant to the notice
 inviting tenders are scrutinised by the
 technical experts and sometimes third-
party assistance from those unconnected
 with the owner's organisation is taken.
 This ensures objectivity. Bidder's expertise
 and technical capability and capacity must
be assessed by the experts. In the matters
of financial assessment, consultants are
appointed. It is because to check and
ascertain that technical ability and the
financial feasibility have sanguinity and
are workable and realistic.            There is a
multi-prong complex             approach; highly
technical in nature.        The tenders where
public largesse is put to auction stand on
a different compartment. Tender with
which we are concerned, is not
comparable to any scheme for allotment.
This    arena      which    we    have    referred
requires technical expertise. Parameters
applied are different. Its aim is to achieve
high degree of perfection in execution and
adherence to the time schedule. But, that
does not mean, these tenders will escape
scrutiny of judicial reyipw. Exercise of
power of judicial review would be called
for if the approach is arbitrary or mala fide
or procedure adopted is meant to favour
one. The decision-making process should
clearly show that the said maladies are
kept at bay. But where a decision is taken
that is manifestly in consonance with the
language of the tender document or
subserves the purpose for which the
tender is floated, the court should follow
the    principle    of     restraint     Technical
evaluation or comparison by the court
would be impermissible. The principle that
is applied to scan and understand an
ordinary instrument relatable to contract in
other spheres has to beJreated differently
than interpreting and appreciating tender
                                                 17



                    documents relating to technical works and
                    projects requiring special skills. The owner
                    should be allowed to carry out the purpose
                    and there has to be allowance of free play
                    in the joints. "


16.   In Director of Education and Ors., Vs. Educomp Datamatics Ltd.,

and Ors.,;(2004) 4 SCO 19, the Hon'ble Apex Court had with the fixation of

thresholds with regard to the turnover in public contracts.                      Para Nos. 9 to 13 of


the judgment is usefully extracted hereunder:

                  "9. It is    well settled now                 that the    courts can
               scrutinise     the    award      of        the     contracts     by    the
               Government or its agencies in exercise of their
               powers of judicial review to prevent arbitrariness or
               favouritism. However, there are inherent limitations in
               the exercise of the power of judicial review in such
               matters. The point as to the extent of judicial review
               permissible In contractual matters while Inviting bids
               by issuing tenders has been examined in depth by
               this Court in Tata Cellular v. Union of India [(1994) 6
               see 651] .After examining the entire case-law the
               following principles have been deduced: (SCC pp.
               687-88, para 94)
                     "94. The principles deducible from the
                    above are:

                     (1) The modern trend points to judicial
                    restraint in administrative action.
                    (2) The court does not sit as a court of
                    appeal but merely reviews the manner in
                     which the decision was made.
                     (3) The court does not have the expertise
                     to correct the administrative decision. If a
                     review of the administrative decision is
                    permitted it will be substituting its own
                     decision, without the necessary expertise
                     which itself may be fallible.
                     (4) The terms of the invitation to tender
                     cannot         be   open        to    judicial        scrutiny
                     because the invitation to tender is in the
                     realm of contract. Normally speaking, the
                     decision to accept the tender or award the
                     contract is reached by process of
                     negotiations through several tiers. More
                            18



      often than not, such decisions are made
      qualitatively by experts.
      (5) The Government must have freedom
      of contract. In other words, a fair play in
      the joints is a necessary concomitant for
      an administrative body functioning in an
      administrative     sphere            or       quasi-
      administrative   sphere.           However,      the
     decision must not only be tested by the
     application of Wednesbury principle of
     reasonableness (including its other facts
     pointed out above) but must be free from
     arbitrariness not affected by bias or
     actuated by mala fides.
     (6) Quashing decisions may impose heavy
     administrative       burden            on        the
     administration and lead to increased and
     unbudgeted expenditure.
                                 ■ }}■




                                         (emphasis supplied)

    10. In Air India Ltd. v. Cochin International Airport
Ltd. [(2000) 2 see 617] this Court observed: (SCC p.
623, para 7)
     "The award of a contract, whether it is by a
     private party or by a public body or the
     State, is essentially fa commercial
     transaction. In arriving at a commercial
     decision     considerations      which    are
     paramount            are          commercial
     considerations. The State can choose Its
     own method to arrive at a decision. It can
     fix its own terms of invitation to tender and
     that is not open to judicial scrutiny. It can
     enter into negotiations before finally
     deciding to accept one of the offers made
     to it. Price need not always be the sole
     criterion for awarding a contract. It is free
     to grant any relaxation, for bona fide
     reasons, if the tender conditions permit
     such a relaxation. It may not accept the
     offer even though it happens to be the
     highest or the lowest. But the State, its
     corporations,  instrumentalities and
     agencies are bound to adhere to the
     norms, standards and procedure laid
     down by them and cannot depart from
     them arbitrarily. Though that decision is
     not amenable to judicial review, the court
     can examine the decision-making process
                              19



      and interfere if if is found vitiated by mala
      fides,           unreasonableness        and
      arbitrariness.

                                   (emphasis supplied)
    11. This principle was again restated by this Court
in Monarch      Infrastructure   (P)   Ltd. v. Commr,
Ulhasnagar Municipal Corpn. [(2000) 5 SCC 287] It
was held that the terms and conditions in the tender
are prescribed by the Government bearing in mind
the nature of contract and in such matters the
authority calling for the tender is the best judge to
prescribe the terms and conditions of the tender. It Is
not for the courts to say whether the conditions
prescribed in the tender under consideration were
better than the ones prescribed in the earlier tender
invitations.


    12. It has clearly been held in these decisions that
the terms of the invitation to tender are not open to
judicial scrutiny, the same being in the realm of
contract. That the Government must have a free
hand in setting the terms of the tender. It must have
reasonable play in its joints as a necessary
concomitant for an administrative body in an
administrative sphere: The courts would interfere
with the administrative policy decision only if it is
arbitrary, discriminatory, mala fide or actuated by
bias. It Is entitled to pragmatic adjustments which
may be called for by the particular circumstances.
The courts cannot strike down the terms of the
tender prescribed by' the Government because it
feels that some other terms in the tender would have
been fair, wiser or logical. The courts can interfere
only if the policy decision is arbitrary, discriminatory
or mala fide.


   13. Directorate of Education, Government of NOT
of Delhi had invited open tender with prescribed
eligibility criteria in general terms and conditions
under tender document for leasing of supply,
installation and commissioning of computer systems,
peripherals and provision of computer education
services in various government/government-aided
senior secondary, secondary and middle schools
under the Directorate of Education, Delhi. In the year
2002-03, 748 schools were to be covered. Since the
expenditure Involved per annum was to the tune of
Rs. 100 crores, the competent authority took a
decision after consulting the Technical Advisory
                                          20



               Committee for finalisation of the terms and conditions
               of the tender documents providing therein that
               tenders be invited from firms having a turnover of
               more than Rs. 20 crores over the last three years.
               The hardware cost itself was to be Rs. 40-45 crores.
               The Government introduced the criterion of turnover
               of Rs. 20 crores to enable the companies with real
               competence having financial stability and capacity to
               participate in the tender, particularly in view of the
               past experience. We do not agree with the view
               taken by the High Court that the term providing a
               turnover of at least Rs. 20 crores did not have a
               nexus with either the increase in the number of
               schools or the quality of education to be provided.
               Because of the increase in the number of schools the
               hardware cost Itself went up to Rs. 40-50 crores. The
               total cost of the project was more than Rs. 100
               crores. A company having a tuipover of Rs. 2 crores
               may not have the financial viability to implement such
               a project. -As a matter of policy the Government took
              a conscious decision to deaf with one firm having
              financial capacity to take up such a big project
              instead of dealing with multiple small companies
              which is a relevant consideration while awarding
              such a big project. Moreover, it was for the authority
              to set the terms of the tender. The courts would not
              interfere with the terms of the tender notice unless it
              was shown to be either arbitrary or discriminatory or
              actuated by malice. While exercising the power of
              judicial review of the terms of the tender notice the
              court cannot say that the terms of the earlier tender
              notice would serve the purpose sought to be
              achieved better than the terms of tender notice under
              consideration and order change in them, unless it is
              of the opinion that the terms were either arbitrary or
              discriminatory or actuated by malice. The provision of
              the terms inviting tenders from firms having a
              turnover of more than Rs. 20 crores has not been
              shown to be either arbitrary or discriminatory or
              actuated by malice. "


ANALYSIS:



17.   Although, Ld. Counsel for the Writ Petitioners has placed heavy reliance

on the Tender conditions in various Tender Notifications of the State of


Telangana as well as the State of Andhra Pfadesh, particularly with regard to
                                              21




    the academic years 2023-2024, 2024-2025, this Court is of the view that
    reference to such Tender conditions has no relevance inasmuch as every

    individual Authority has always right to either prescribe or to modify the
    Tender conditions 'at will'.
                                   One idiomatic expression states that 'Monkeys
    cannot decide the affairs of the forest' likewise, a bidder can never dictate the

    employer or the Government Authority with regard to the fixation of tender
    conditions or the parameters. Even with regard to the offer made by the Writ

    Petitioners through their Letter dated 05.02.2025 (Ex.P.2), by which the Writ
    Petitioners had acted like a whistle-blower to the Government informing the

    Government that the price of the paper has significantly reduced from
    Rs.150/- per Kg to Rs.80/- per Kg with a request to the Government to factor-
    in this reduction in price in the Tender document which is likely to be issued in

    the near future, the said intimation may not enure to the benefit of the Writ

    Petitioners. It can always be reasonably assumed that the Government and
}
    its Authorities are also keeping themselves abreast of the changes in the
I
    market price with regard to the cost of paper from time to time.   Therefore   no



    benefit can be attached to the Writ Petitioners in informing the Government

    with regard to the reduction of price of paper.

    18.
          In the ultimate analysis, this Court is of the opinion that the increase of
    the threshold with regard to the turnover from five crores per annum to ten

    crores per annum is neither unreasonable nor arbitrary.    This Court is also of

    the opinion that giving latitude to the bidders to show the minimum turnover of

    ten crores for two years period during the last five financial years is also not
                                             22




arbitrary. The facts in the present case would also indicate that out of the 13

bidders, 8 bidders have reached the threshold of turnover of ten                crores.


Therefore, it cannot be said that fixation of the 10 crores threshold is arbitrary

in nature nor is it discriminative in any manner because out of the 13 bidders

8 bidders were qualified in the technical bid.


19.        At this stage, the Court is also reminded of the fact that about            12


bidders got qualified even without the Corrigendum dated 21.02.2025 and

therefore, it cannot be said that the Corrigendum that was issued within three

days of the earlier Tender Notification is bad in law.

20.        In the above premise, this Court is of the opinion that the Writ Petition is

devoid of any merit. Accordingly, this Writ Petition is dismissed.        No order as


to costs.



21.        Interlocutory Applications, if any, stand closed in terms of this order.


                                     //TRUE COPY//                 Sd/- K J RAJA BABU

                                                              ASSISTAN^EGISTRAR
                                                                 Section officer
To,

      1.   One CC to Sri Tagore Yadav Yaragorla Advocate [OPUC]
      2.   Two CCs to GP for School Education, High Court of Andhra Pradesh.
           [OUT]
      3.   9 L.R. Copies.

      4.   The Under Secretary, Union of India, Ministry of Law,             Justice    &

           Company Affiars, New Delhi.
     5.    The Secretary, A.P. High Court Advocates Association, High Court of
           A.P. at Amaravati, Guntur District.
      6.   Three CD Copies
TF
 HIGH COURT

DATED:06/05/2025




ORDER
WP.No.5435 of 2025

X 1 MAY 2n?5 ^ Curreni beciion * DISMISSING THE W.P., WITHOUT COSTS