Varun Sriram vs Union Of India on 17 July, 2026

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    Madras High Court

    Varun Sriram vs Union Of India on 17 July, 2026

                                                                              W.P.No.28368 of 2026
    
                                      IN THE HIGH COURT OF JUDICATURE AT MADRAS
    
                                                  DATED:    17.07.2026
    
                                                         CORAM :
    
                                  THE HONOURABLE MR. SUSHRUT ARVIND DHARMADHIKARI,
                                                    CHIEF JUSTICE
                                                        AND
                                      THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN
    
                                                 W.P.No.28368 of 2026
                                          and WMP Nos.31097 and 31098 of 2026
    
                         Varun Sriram
                         S/o.Sreedhar,
                         No.27, Eswarmurthi Layout,
                         First Street, Karuvampalayam,
                         Tiruppur, Tamil Nadu-641 604.
    
                                                                         Petitioner(s)
    
                                                            Vs
    
                         1. Union of India
                            Rep by the Secretary,
                            Ministry of Housing and Urban Affairs,
                            Nirman Bhawan, Maulana Azad Road,
                            New Delhi-110 011.
    
                         2. Union of India
                            Rep by the Secretary,
                            Department of Expenditure,
                            Ministry of Finance, North Block,
                            New Delhi-110 001.
    
                         3. Central Vigilance Commission
                            Rep by its Secretary,
                            Satarkta Bhawan, GPO Complex,
                            Block-A, INA, New Delhi-110 023.
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                                                                            W.P.No.28368 of 2026
    
    
    
                         4. Competition Commission of India,
                            Thru its Secretary, 9th Floor,
                            Office Block-1, Kidwai Nagar (East),
                            New Delhi - 110023.
    
                         5. Comptroller and Auditor General of India,
                            Thru the Competent Officer,
                            9, Deen Dayal Upadhyaya Marg,
                            New Delhi - 110124.
    
                         6. NBCC (India) Limited,
                            Thru its Chairman and Managing Director,
                            NBCC Bhawan, Lodhi Road,
                            New Delhi – 110003.
                            Also having its Regional Office.
                            Bakthavatchalapuram, Avadi, Chennai,
                            Tamil Nadu-600 054.
    
                         7. HSCC (India) Limited,
                            Thru its Managing Director,
                            E-6(A), Sector-1, Noida,
                            Uttar Pradesh - 201301.
    
                         8. Chennai Port Trust,
                            Rep. by its Chairman,
                            Chennai Port Trust, Rajaji Salai,
                            Chennai-600 001.
    
                         9. Chennai Port Trust Hospital,
                            Rep. by its Chief Medical Officer,
                            Chennai Port Trust Hospital,
                            Rajaji Salai, Chennai-600 001.
    
                                                                        Respondent(s)
    
                         PRAYER: Petition filed under Article 226 of the Constitution of India
                         seeking issuance of a writ of certiorarified mandamus (a) calling for
                         the records of the 6th Respondent in connection with impugned Notice
                         Inviting e-Tender dated 29.06.2026 and consequential Corrigendum/
                         Addendum-02, dated 10.07.2026 and Corrigendum/Addendum-03,
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                                                                                  W.P.No.28368 of 2026
    
                         dated 13.07.2026 and so for in connection with Clause 3.8 of the
                         Revised SOP of the 3rd Respondent and to quash the same as
                         arbitrary, illegal, unconstitutional; (b) To issue an appropriate writ,
                         order or direction declaring that no Government-controlled entity,
                         Central Public Sector Undertaking, Government company, subsidiary,
                         associate, group entity or any other empanelled entity shall be
                         permitted to participate in a bidding process as an independent bidder
                         unless the procuring authority has first undertaken due and effective
                         verification of any overlapping ownership, beneficial ownership,
                         common administrative or institutional control, parent-subsidiary or
                         group relationship, common directors or nominee directors, common
                         shareholders, common Board-level or senior-management oversight,
                         family or business association, and common digital, portal, payment or
                         operational infrastructure, and has recorded a reasoned determination
                         that such participation does not impair genuine competition,
                         transparency, fairness or the integrity of the bidding process; (c) To
                         issue an appropriate writ, order or declaration that the Independent
                         External Monitor mechanism under Clauses 4.3, 4.5, 4.6, 4.12 and
                         5.13 of the Revised SOP is advisory and supplemental in nature and
                         shall not operate as a mandatory first forum, a screening mechanism
                         prior to approaching a statutory authority, a substitute for an
                         independent investigation, or a means of delaying, mediating, settling
                         or closing allegations concerning corruption, collusive bidding, bid
                         rigging, false declarations, conflict of interest, official complicity or loss
                         to the public exchequer, and further direct that the Integrity Pact,
                         including the obligations relating to beneficial-ownership disclosure,
                         conflict disclosure, anti-collusion compliance, cooperation with audit
                         and investigation, and preservation of evidence, shall be strictly
                         enforced against all bidders, contractors, joint-venture partners and
                         material subcontractors; (d) directing Respondent Nos.2, 3 and 4,
                         within their respective statutory jurisdictions and in coordination,
                         wherever legally permissible, with Respondent Nos.1, 5, 6 and 7, to
                         independently examine the verified material relating to the subject
                         procurement, conduct or cause to be conducted a time-bound inquiry
                         and forensic examination, and determine whether the empanelled or
                         participating bidders were genuinely independent, whether any official,
                         intermediary or connected entity facilitated an anti-competitive or
                         otherwise      unlawful   arrangement,      and     whether    proceedings,
                         information, reference, vigilance action, audit or any other action
                         under the applicable statutory framework are warranted; (e) directing
                         Respondent Nos.6, 7 and 8 to preserve, disclose and produce before
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                                                                                       W.P.No.28368 of 2026
    
                         the competent statutory authorities the complete procurement and
                         electronic record relating to the subject HSCC empanelment process
                         and Tender ID 2026_NBCC_843246_1/Tender No. NBCC/CHPA/
                         Hospital/2026/26, including the Notice Inviting Tender, Expression of
                         Interest, Integrity Pact, corrigenda, bid and evaluation records,
                         beneficial-ownership declarations, conflict-of-interest disclosures,
                         bidder eligibility and due-diligence records, server logs, user-account
                         histories, bid-upload metadata, digital-signature identifiers, payment
                         records, communications, file notings, IEM records, CVO records and
                         the approval chain, and consequently direct the competent
                         respondents to take a reasoned and time-bound decision upon such
                         material in accordance with law; (f) To award costs and to pass such
                         or other order or orders as this Honble Court may deem fit and proper
                         in the interest of justice, constitutional governance and probity in
                         public procurement; (g) to pass such other or further orders as this
                         Court may deem fit and proper in the interest of justice.
    
    
                                           For Petitioner(s):   Mr.MA.Gouthaman
    
                                           For Respondent(s):Mr.AR.L.Sundaresan
                                                             Additional Solicitor General of India
                                                             Assisted by Mr.V.Chandrasekaran
                                                             Senior Panel Counsel
                                                             for R1 to R3, R5 and R6
    
                                                                Mr.A.Kumaraguru
                                                                for R8 and R9
    
                                                               ORDER
    

    (Order of the Court was made by the Hon’ble Chief Justice)

    This writ petition, styled as public interest litigation, is filed by

    SPONSORED

    a practising advocate seeking interference with the tender

    participation process by Central Public Sector Undertakings alleging

    collusive bidding, cartelization, bid-rigging, breach of tender
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    W.P.No.28368 of 2026

    integrity and violation of fair competition principles. The petitioner

    also seeks production of records, preservation of digital material, an

    independent enquiry and restraint against further action under the

    tender.

    2.1. The main plank of the argument advanced by learned

    counsel for the petitioner is that respondent Nos.6 and 7 could not

    have participated in the same tender as independent bidders, since

    they allegedly have common ownership, common administrative or

    institutional control, common Board-level/senior-level oversight,

    common directors/ nominee directors, common shareholders/

    beneficial ownership, parent-subsidiary/ group relationship, family

    or business association and common digital/ portal/ payment

    infrastructure.

    2.2. It is further submitted that public procurement must be

    fair, transparent and competitive and that, where competing entities

    have common governance, shareholder, administrative or digital

    linkages, the tendering authority ought to examine whether the bids

    were independently prepared, approved and submitted. The
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    W.P.No.28368 of 2026

    relevant tender records, portal logs, IP logs, payment gateway

    records, Board approvals, shareholding records, internal notes and

    bid-submission records are in the custody of the respondents and,

    therefore, the same ought to be called for by this court. In effect,

    the petitioner does not seek a final finding of collusion/cartelization

    at this stage, but seeks an enquiry into the tender process on the

    basis of the aforesaid allegations.

    3. On the other hand, the learned Additional Solicitor General

    argued that this petition, filed by a practising lawyer, is actually a

    proxy litigation. To support this claim, he pointed out that the

    petitioner has provided sensitive, internal documents that only an

    industry insider, and not an outside lawyer, would be able to access.

    4. The law relating to judicial review in tender matters is well

    settled. This court, exercising jurisdiction under Article 226 of the

    Constitution of India, does not sit as an appellate authority over the

    decision of the tendering authority. The court is solely concerned

    with the legality of the decision-making process and not with the

    merits of the commercial decision.

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    5. In Tata Cellular v. Union of India1, the Supreme Court held

    that the modern trend points to judicial restraint in administrative

    action and that the Court does not sit as a court of appeal, but

    merely reviews the manner in which the decision was made.

    6. In Jagdish Mandal v. State of Orissa 2, the Supreme Court

    held that judicial review in tender matters is intended to prevent

    arbitrariness, irrationality, bias and mala fides, and that the power

    of judicial review cannot be invoked to protect private interest at

    the cost of public interest or to decide contractual disputes.

    7. The aforesaid principle has been reiterated by the Supreme

    Court in the following cases: Michigan Rubber (India) Ltd. v. State

    of Karnataka3; Afcons Infrastructure Ltd. v. Nagpur Metro Rail

    Corporation Ltd4; Silppi Constructions Contractors v. Union of

    India5; and N.G. Projects Ltd. v. Vinod Kumar Jain6.

    1 (1994) 6 SCC 651
    2 (2007) 14 SCC 517
    3(2012) 8 SCC 216
    4(2016) 16 SCC 818
    5 (2020) 16 SCC 489
    6(2022) 6 SCC 127
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    W.P.No.28368 of 2026

    8. The entertainability of the present writ petition must,

    therefore, be tested on the limited parameters of arbitrariness,

    mala fides, irrationality, violation of essential tender conditions or

    demonstrable public injury.

    9. Having examined the pleadings and the arguments, we find

    that the petitioner has not placed on record any specific material

    showing actual collusion, bid coordination, exchange of price-

    sensitive information, common bid control, price fixing, market

    allocation, suppression of a mandatory disclosure or manipulation of

    the tender process in any manner.

    10. There can be no qualms about the proposition that public

    procurement must be fair, transparent and non-arbitrary. However,

    the aforesaid principles do not mean that every tender involving

    entities having some common ownership, common directors,

    common shareholders, common family or business association,

    common institutional connection or common digital infrastructure

    must be interdicted. Article 14 of the Constitution of India requires
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    W.P.No.28368 of 2026

    fairness in the decision-making process. It does not authorize the

    court to presume collusion merely from structural or relationship-

    based commonality. The petitioner has not demonstrated that the

    tendering authority acted arbitrarily, favoured any bidder, violated

    an essential tender condition, ignored a mandatory disqualification,

    or proceeded despite concrete material of collusive bidding.

    11. In our view, collusion cannot be established only because

    of existence of any common ownership, common directors, common

    shareholders or institutional linkage. What must be shown is that

    such linkage resulted in actual common bid control, exchange of bid

    information, coordinated pricing or manipulation of the tender

    process. In the public sector framework, more than one

    Government company, subsidiary, joint venture, special purpose

    vehicle, undertaking or Government-controlled entity may

    participate in public procurement processes. Such entities may have

    common Government ownership, common administrative ministries,

    common nominee directors or common reporting structures. These

    features are ordinary incidents of public sector governance and do

    not, by themselves, establish cartelization.
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    W.P.No.28368 of 2026

    12. If the petitioner’s argument is accepted, every tender

    involving two Government companies, related public sector entities,

    private group companies, entities with common shareholders, or

    entities having present or past common directors would become

    vulnerable merely because of such structural or relational

    commonality. Such a conclusion would be commercially

    impracticable and legally unsustainable. Therefore, the relevant test

    is not whether there exists some ownership, directorship,

    shareholding, family, trust, group or institutional connection, but

    there should be material to show that the bidders acted pursuant to

    a common design to manipulate the tender process, exchange bid

    information, control pricing, restrict competition or defeat the

    integrity of the tender. In the instant case, no such material has

    been placed before us. Moreover, it is the duty of the tender issuing

    authority, be it Central Public Sector Undertaking or any other body,

    to verify the veracity and genuineness of bidding entities at the time

    of bidding.

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    13. That apart, the contention of learned counsel for the

    petitioner that participation by related entities, group entities,

    subsidiaries or affiliates is impermissible, cuts no ice, in the absence

    of any specific tender condition prohibiting such participation. A

    disqualification cannot be read into a tender by implication. If the

    tendering authority intended to prohibit participation by parent

    companies, subsidiaries, group entities, affiliates, entities with

    common shareholders, or entities under common Government or

    private ownership, it was open to the tendering authority to

    expressly provide so in the tender conditions.

    14. In Uflex Ltd v. Government of Tamil Nadu7, the Supreme

    Court dealt with allegations of financial/corporate linkage between

    bidders and held that such linkage could not be treated as a

    disqualification unless the tender terms made it so. The Supreme

    Court also reiterated that tender disputes are commercial matters

    and courts should exercise restraint in interfering with tender

    awards. In the present case, the petitioner has not shown any

    express tender condition prohibiting participation by entities merely

    7 (2022) 1 SCC 165
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    W.P.No.28368 of 2026

    on account of Government ownership, private shareholding

    linkages, administrative connection, group relationship, Board-level

    overlap, common shareholders or affiliate status. This court cannot

    create a new eligibility condition or disqualification which the tender

    document itself does not prescribe.

    15. Yet another ground of attack raised by the petitioner is the

    commonality in digital infrastructure, common IP address, common

    portal access, payment gateway, official network or tender-

    submission environment. In an electronic tender process, digital

    records may certainly be relevant. However, a technical

    circumstance such as common IP address or common portal /

    payment infrastructure cannot, by itself, establish collusive bidding.

    The common IP address or digital commonality may, at the best, be

    a circumstance for verification by the tendering authority in an

    appropriate case, but it cannot substitute material showing actual

    common bid control, bid coordination, price-sharing, exchange of

    confidential information or manipulation of the tender process. In

    the absence of foundational facts beyond broad suspicion, such a

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    W.P.No.28368 of 2026

    request would amount to converting PIL jurisdiction into a process

    of discovery before pleadings are substantiated.

    16. A constitutional court, under the garb of public interest

    litigation, cannot direct a roving and fishing enquiry merely because

    two bidders alleged to have used the same IP address, portal,

    payment system or network environment. Something more must be

    pleaded and shown, such as common bid drafting, common login

    control, shared price information, coordinated submission, identical

    commercial conduct, suppression of a mandatory disclosure or other

    material indicating an arrangement to restrict competition. No such

    material has been placed before us.

    17. To order an enquiry on such asseverations contained in

    this petition would effectively authorise speculative discovery

    against bidders and the tendering authority. Such a course would

    unsettle public procurement, expose tender processes to collateral

    challenges and permit PIL proceedings to be used to obtain internal

    commercial and electronic records without foundational proof.

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    W.P.No.28368 of 2026

    18. The challenge to the procedure involving Independent

    External Monitors (“IEMs”), established under the framework

    prescribed by Central Vigilance Commission Circular No.05/01/22,

    dated 25.01.2022, is equally without merit. The IEM mechanism

    has been mandated by the Central Vigilance Commission to

    promote transparency and to prevent and curb corrupt practices in

    public procurement and government contracts. The principal

    function of IEMs is to oversee the implementation of Integrity Pacts,

    ensure that the contracting parties adhere to their commitments

    against corruption and facilitate the resolution of grievances without

    unnecessary and costly litigation. Having alleged collusion and

    cartelization among the concerned entities, the petitioner cannot

    simultaneously question the very procedure designed to prevent,

    detect and address such misconduct. The IEM procedure forms part

    of the agreed contractual and integrity framework between the

    parties and must, therefore, be followed in accordance with the

    applicable terms of the Integrity Pact and the mandate of the

    Central Vigilance Commission.

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    19. To sum up, the petitioner has not shown any direct public

    injury, statutory violation, mala fide action, loss to public exchequer,

    violation of an essential tender condition or concrete material

    indicating actual cartelisation.

    20. As a sequel, this writ petition is dismissed with costs

    quantified at Rs.25,000/- payable by the petitioner to the Tamil

    Nadu Advocates’ Clerks Welfare Fund within two weeks from the

    date of receipt of a copy of this order, failing which the matter may

    be listed before the court after two weeks. Consequently, interim

    applications stand closed.

    (SUSHRUT ARVIND DHARMADHIKARI,CJ) (G.ARUL MURUGAN,J)
    17.07.2026
    Index : Yes/No
    Neutral Citation : Yes/No
    sasi

    To:

    1. The Secretary, Union of India
    Ministry of Housing and Urban Affairs,
    Nirman Bhawan, Maulana Azad Road,
    New Delhi-110 011.

    2. The Secretary, Union of India
    Department of Expenditure,
    Ministry of Finance, North Block,
    New Delhi-110 001.

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    W.P.No.28368 of 2026

    3. The Secretary, Central Vigilance Commission
    Satarkta Bhawan, GPO Complex,
    Block-A, INA, New Delhi-110 023.

    4. The Secretary, Competition Commission
    of India, 9th Floor,
    Office Block-1, Kidwai Nagar (East),
    New Delhi – 110023.

    5. The Competent Officer,
    Comptroller and Auditor General of India,
    9, Deen Dayal Upadhyaya Marg,
    New Delhi – 110124.

    6. The Chairman and Managing Director,
    NBCC (India) Limited,
    NBCC Bhawan, Lodhi Road,
    New Delhi – 110003.

    Also having its Regional Office.

    Bakthavatchalapuram, Avadi, Chennai,
    Tamil Nadu-600 054.

    7. The Managing Director,
    HSCC (India) Limited,
    E-6(A), Sector-1, Noida,
    Uttar Pradesh – 201301.

    8. The Chairman, Chennai Port Trust,
    Chennai Port Trust, Rajaji Salai,
    Chennai-600 001.

    9. The Chief Medical Officer,
    Chennai Port Trust Hospital,
    Chennai Port Trust Hospital,
    Rajaji Salai, Chennai-600 001.

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    W.P.No.28368 of 2026

    THE HON’BLE CHIEF JUSTICE
    AND
    G.ARUL MURUGAN,J.

    (sasi)

    W.P.No.28368 of 2026

    17.07.2026

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