Vinishma Technologies Pvt. Ltd. v. State of Chhattisgarh 2025 INSC 1182 - Art 14,19,21 Constitution - Doctrine of Level Playing Field - Tender

Constitution of India - Article 19(1)(g) -The doctrine of level playing field requires that all equally placed competitors must be given an equal opportunity to participate in trade and commerce. It is designed to prevent the State from skewing the market in favour of few by erecting artificial barriers. (Para 18)

Constitution of India - Article 21,14 - Right to Life includes ‘opportunity’ as well. The principle of non-discrimination is embodied in Article 14 of the Constitution of India. Article 14 has to be read in conjunction with Rights conferred by other Articles like Article 21 (Para 16)

Constitution of India - Article 14,19 - Tender Condition clause stated that Bidders must have supplied sports goods worth at least Rs.6.00 crores (cumulative) to State Government agencies of Chhattisgarh in the last three financial years - SC held:To confine the eligibility to participate in the tender, within one State is 13 not only irrational but is also disproportionate to the goal of ensuring effective delivery of Sports Kits. (Para 19) Such a restriction, therefore, cannot be justified as reasonable within the meaning of 19(6) of the Constitution of India. The State while it enjoys the freedom to prescribe the conditions in the tender, cannot exercise that power in a manner that infringes upon constitutional guarantees, by closing the market to outsiders without just cause. The doctrine of level playing field requires that gates of competition be opened to all who are equally placed. The impugned tender condition excludes the competent and experienced suppliers, who may have executed contracts of far greater magnitude in other States or for the Central Government departments, from participating in the tender and has the impact of promoting cartelisation. The impugned condition operates as a closed door to outsiders and restricts the wider participation of bidders and restricts competition. The impugned tender condition, therefore, is violative of Article 14 and also offends Article 19(1)(g) of the Constitution of India. (Para 20)

Constitution of India - Article 226 -Tender - The discretion of the Government in granting the largesse, is not unlimited and the Government cannot give or withhold largesse in its arbitrary discretion or at its sweet will -Government cannot without adequate reason exclude any person from dealing with it or take away largesse arbitrarily- Activities of the Government have a public element and therefore there should be fairness and equality - Government must have free hand in setting the terms of the tender and the Court cannot strike down the terms of the tender prescribed by the Authority merely because it feels some other terms in the tender would have been fairer, wiser or more logical - In the matter of formulating conditions of tender document unless the action of tendering authority is found to be arbitrary and malicious the Court would not interfere- Court cannot sit over judgment on what should be the eligibility criteria in the tender notice unless the same is arbitrary, discriminatory or actuated by mala fides. (Para 15)