Court Orders Fresh Tender Process After Finding Arbitrary Decision-Making in Awarding Tender for Electrical Meters
The Punjab and Haryana High Court has nullified the tender award granted by Punjab State Power Corporation Ltd. (PSPCL) to a bidder for the supply of sophisticated electrical meters, citing arbitrary decision-making and non-compliance with mandatory bid conditions. The judgment was delivered on July 7, 2026, by a division bench consisting of Justices Deepak Sibal and Lapita Banerji.
The case, Kannect Engineers Pvt. Ltd. v. Punjab State Power Corporation Ltd., centered around allegations of PSPCL bypassing the mandatory requirement for bidders to submit type test reports conforming to specific technical standards along with their e-bids. Despite these requirements, PSPCL awarded the tender to respondent No.3 even though several essential test reports were submitted long after the deadline for bid submission and the award of the contract.
The court meticulously reviewed the tender conditions and found that the PSPCL's decision to place a purchase order on respondent No.3 was made without confirming the technical compliance of the equipment. The judgment emphasized that such actions could lead to the supply of sub-standard equipment and numerous legal complications.
The court noted that the tender process must be transparent, fair, and free from arbitrariness, as required under Article 14 of the Constitution. The decision to award the tender was found to be irrational and arbitrary, warranting judicial intervention. As a result, the court set aside the tender award and ordered PSPCL to initiate a fresh tender process.
The judgment underscores the importance of adhering to tender conditions and the role of judicial oversight in ensuring fairness and transparency in public procurement processes.
Bottom line:-
Tender conditions mandating submission of type test reports for sophisticated electrical equipment along with the e-bid are mandatory and cannot be circumvented by placing orders without requisite compliance.
Statutory provision(s): IEC 61000-4-30, IEC 60068-2-27, IEC 60068-2-6, IEC 60068-2-30, IEC 61000-4-2, IEC 61000-4-3, IEC 61000-4-4, IEC 61000-4-5, IEC 61000-4-6, IEC 61000-4-12, IS 17036: 2018, IS 14697, ISO 9001:2015, ISO 27001:2005, ISO 14001:2004.
