Dismissed

Oswal Transformers Private Limited v. Chhattisgarh State Power Distribution Company Limited

Chhattisgarh HC17 Sept 2026WPC/4756/2026

Case brief

AI extract

What is this about?

The petitioner challenged the rejection of its technical bid in a tender for supply of distribution transformers. The bid was submitted for its Chhattisgarh unit as a State SSI unit, which required a minimum average annual turnover of Rs. 1 crore for the best three of the last five financial years. The petitioner failed to meet this threshold for the Chhattisgarh unit and argued that the turnover of its Rajasthan unit should be considered. The Court held that since the bid was submitted for the Chhattisgarh unit, only its turnover was relevant, and the petitioner did not meet the eligibility criterion. The writ petition was dismissed.

What did the court decide?

No relief granted. The writ petition was dismissed.

Oswal Transformers Private Limited Vs… — Public Procurement and Tenders | Chhattisgarh HC (2026)

CGHC010364152026

2026:CGHC:40793-DB

NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

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WPC No. 4756 of 2026

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Oswal Transformers Private Limited A Private Limited Company, Registered Address G-678, Road No. 9f2, V.K.I. Area, Jaipur, District Jaipur Rajasthan, Pin 302013, Factory Unit Address In C.G. At Oswal Transformers Private Limited, Plot No, 112, Bartori Industrial Area, Tilda, Raipur, District Raipur Chhattisgarh Pin Code 493114 Through Alok Tater, S/o Shri Mahendra Kumar Jain, Aged About 37 Years, Director, Oswal Transformers Private Limited, Registered Address G-678, Road No. 9f2, V.K.I. Area, Jaipur, District - Jaipur Rajasthan Pin 302013

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... Petitioner(s)

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versus

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1. Chhattisgarh State Power Distribution Company Limited Through Its Managing Director, Chhattisgarh State Power Distribution Company Limited, Vidyut Seva Bhawan, Dangania, Raipur, District Raipur Chhattisgarh Pin Code 492 013

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2. Managing Director Chhattisgarh State Power Distribution Company Limited, Vidyut Seva Bhawan, Dangania, Raipur, District Raipur Chhattisgarh Pin Code 492 013

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3. Chief Engineer (Store And Purchase) Chhattisgarh State Power Distribution Company Limited, 5^th Floor, Vidyut Seva Bhawan, Dangania, Raipur, District Raipur Chhattisgarh Pin Code 492 013

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4. Superintending Engineer (P) I I O/o Chief Engineer (Store And Purchase), Chhattisgarh State Power Distribution Company Limited, 5th Floor, Vidyut Seva Bhawan, Dangania, Raipur, District Raipur Chhattisgarh Pin Code 492 013

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5. Shree Balaji Industries 2/f, Shree Balaji Industries, Light Industrial Area, Bhilai, District Durg Chhattisgarh Pin Code 490 026, (Lowest Bidder In 25 Kva, 63 Kva And 100 Kva Transformer)

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6. Centuary Infrapower Private Limited Khasra No. 3109 And 3110, Opp. R.I.I.C.O. Industrial Area, Village And Post Office - Kaladera, Jaipur, District Jaipur Rajasthan Pin 303 801 (Lowest Bidder In 200 Kva Transformer)

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... Respondent(s)

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(Cause-title taken from Case Information System)

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Digitally signed by BRIJMOHANMORLE BRIJMOHANMORLEDate: 2026.09.22 10:39:54 +0530

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For Petitioner : Mr. K. Rohan, Advocate. For Respondents No. 1 to 4 : Mr. Abhinav Kardekar and Ms. Neha Baid, Advocates.

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Hon'ble Shri Krushna Ram Mohapatra, Chief Justice

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Hon'ble Shri Santosh Sharma, Judge

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Order on Board

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Per Krushna Ram Mohapatra, Chief Justice

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18.09.2026

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1. Heard Mr. K. Rohan, learned counsel for the petitioner. Also heard

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Mr. Abhinav Kardekar, learned counsel, appearing for respondents No. 1 to 4 along with Ms. Neha Baid, learned counsel.

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2. Petitioner in this writ petition seeks for the following reliefs:

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“ a. Call for the entire records pertaining to the present case.

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b. Hold and Declare that the action of the respondent authorities in issuance of the impugned communication made vide letter dated 10.09.2026 (Annexure P/1) whereby the Petitioner Company’s Bid has been rejected is deliberate, illegal, arbitrary, irrational, full of mala fide and perverse exercise of administration discretion and is violative of Article 14 of the Constitution of India.

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c. Hold and Declare that the impugned communication made vide letter dated 10.09.2026 (Annexure P/1) whereby the petitioner Company’s Bid has been rejected is perverse, bad in law and suffers from illegality and is liable to be set aside.

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d. Issue a Writ of Certiorari quashing and setting aside the impugned communication made vide letter dated 10.09.2026 (Annexure P/1) whereby the petitioner Company’s Bid has been rejected.

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e. Hold and Declare that the petitioner Company’s Bid has been wrongly rejected and as a consequence, Issue a Writ of Mandamus to the respondent authorities to consider and open the petitioner Company’s Bid by treating the same to be alive and responsive.

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f. Issue a Writ of Mandamus to the respondent authorities to take the appropriate and necessary steps after opening the petitioner Company’s Bid and to grant the Work Order to the petitioner, if found and declared to be the Lowest Bidder, in accordance with the Terms and Conditions of the Notice Inviting Tender (NIT) dated 17.02.2026 (Annexure P/10).

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g. Grant the cost of the petition to the petitioners.

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h. Grant any other relief as deemed fit and proper in the facts and circumstances of the case. ”

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3. Learned counsel for the petitioner submits that pursuant to the Tender Call Notice (Annexure P/10) for supply of “ BIS certified 11/0.433 kV Class Distribution Transformers of various ratings inclusive of 25 kVA, 63 kVA, 100 kVA and 200 kVA (Aluminium wound) and 315 kVA (Copper wound0 Energy Efficiency Level ‘2’ as per IS 1180 (Part 1) : 2014 ”, the petitioner submitted his tender documents. The petitionerCompany has two units in the State of Chhattisgarh and in the State of Rajasthan. The technical bid of the petitioner was rejected for nonsubmission of turnover of best three years out of last five financial years, i.e. for 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25. Though the

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petitioner submitted the best turnovers for the last three years, but the authority took into consideration the turnover of the for the year of 2024-25 only and rejected technical bid of the petitioner.

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4. It is further submitted that the pre-qualification requirements as per Clause 5 of the Tender Document clearly stipulates the eligibility criteria applicable to Regular Outside State Bidders as well as CG State SSI Units. The relevant provisions of Clause 5 of the Tender Document are reproduced hereinbelow for ready reference:

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“ 5. Pre-Qualification Requirement : XXX XXX XXX

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A. For Regular Outside State Bidders :

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(i) Bidder should be in manufacturing business of Distribution Transformers. The bidder should have a valid NSIC/UDYAM certificate for Micro, Small or Medium Scale Unit registered under MSME act 2006 for tendered items. In case firm is not registered with NSIC/MSME, bidder should have a Factory Registration Certificate issued by Industries Department of State/Central Govt. for tendered items.

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XXX XXX XXX

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(iv) The bidders should have sound financial capability. Outside state bidders having Minimum Average Annual Turnover (MAAT) of Rs. 150.0 Cr. (Rs. One hundred fifty Crores) for best three years out of last 5 financial years i.e. 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25 will only qualify to participate in the instant tender. The bidder is required to furnish self-Attested copies of Balance Sheets & Profit & Loss account along with original certificate (mentioning UDIN No.) issued by Chartered Accountant as prescribed in Schedule-XII showing “Annual Turnover” and “Net Worth” of last five

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years, indicating assets and liability of firm, for having required turn-over and Net Worth. In absence of this, the offer shall be out rightly rejected.

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Further, in case bidder is a holding company, the Financial Position criteria referred above, shall be that of holding company only (i.e. excluding its subsidiary/group companies). In case bidder is a subsidiary of a holding company, the Financial Position criteria referred above, shall be that of subsidiary company only (i.e. excluding its holding company).

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The bidder is required to furnish self-Attested copy of balance sheets in support of having required turnover. In absence of this the offer shall be out rightly rejected and will not be considered for further evaluation.

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(v) Net worth of bidder for any 03 years out of last five financial years i.e. 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25 should be positive, out of which last year audited balance sheet should show positive Net worth.

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Note:- The bidder is required to furnish original Certificates (mentioning UDIN No.) issued by Chartered Accountant showing “Annual Turnover” and “Net Worth” indicating assets and liability of firm for last five financial years i.e. 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25 in support of having required turnover and Net worth along with audited “Balance Sheet” and “Profit & Loss account” for those financial years. In absence of this, the offer shall be out rightly rejected and will not be considered for further evaluation.”

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B. For CG State SSI units:

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(i) The participating Chhattisgarh State based SSI Units (hereinafter referred to as CG State SSI Units) should be Micro and Small Enterprises under the criteria of

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Micro, Small and Medium Enterprises Development Act, 2006 and should have necessary certifications issued by Department of Industries of the State of Chhattisgarh of distribution transformers.

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XXX XXX XXX

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(iv) State SSI Units of Chhattisgarh should have Minimum Average Annual Turnover (MAAT) of Rs. 1.0 Cr. (Rs. One Crore only) for best three years out of last 5 financial years i.e. 2020-21, 2021-22, 2022-23, 2023-24 and 2024-25 will only qualify to participate in the tender.

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Other requirements related with turnover shall be same as stated under 5(A)(iv) & (v) for regular outside state bidders.

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(v) State SSI Units of Chhattisgarh who have at least total 5 years experience of repairing/manufacturing of minimum 500 nos. Distribution transformers of assorted ratings for SEBs/DISCOMs/Power Utilities owned by State/Central Govt., shall be considered for placement of regular order.

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The clause is amended to this extent only.”

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5. Treating the petitioner as CG State SSI Unit, the Tender Inviting Authority did not take into consideration the turnover of the petitioner for the years 2020-21 to 2023-24. The State based unit of the petitioner was infact established in the month of August, 2025. Thus, the petitioner could not have submitted turnover of any best three years out of last five financial years for the Chhattisgarh based unit.

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6. It is submitted that the petitioner Company has been registered under the Companies Act, 2013 (for short, ‘Act of 2013’) and both the units

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in the State of Chhattisgarh and Rajasthan constitute one composite unit. Further, the petitioner has MSME certificate and certificate obtained from District Trade and Industries Centre, Chhattisgarh. These aspect were not taken into consideration by the Tender Inviting Authority for which the technical bid of the petitioner was rejected.

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7. It is thus submitted the turnover of the unit of the petitioner in the State of Rajasthan should also be taken into consideration and the price bid of the petitioner should be considered along with other bidders.

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8. Learned counsel appearing for respondents No. 1 to 4 (Tender Inviting Authority) vehemently objects to the submission of learned counsel for the petitioner. He made detailed submissions on the tender conditions as well as the deficiency in the bid submitted by the petitioner. It is his submission, if the turnover of the unit of the petitioner in the State of Rajasthan would be taken into consideration, then the petitioner would be fall under the category of sub-clause A of Clause 5, i.e. Pre-Qualification Requirement. In that case, he has to show a turnover of Rs. 150 crore for three years, but the turnover of the petitioner does not match to the same. Thus, the petitioner submitted the bid in the name of unit at Chhattisgarh. Thus, the same was taken into consideration, more particularly when he had submitted documents with regard to the unit in the State of Chhattisgarh only.

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9. Since the petitioner did not submit the turnovers for the best three years out of 2020-21 to 2024-25 financial years, its technical bid was rightly rejected. In the meantime, price bid of the successful bidders (technical bid) have already been opened.

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10. Counter-affidavit filed by the respondents No. 1 to 4 received from the Registry is taken on record. He also made submission reiterating the contentions made in the counter-affidavit. It is, therefore, submitted that the writ petition being devoid of any merit should be dismissed.

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11. Taking note of the submission made by the learned counsel for the parties, this Court finds that the petitioner had submitted bid document in respect of its unit at Raipur in the State of Chhattisgarh. Although he has submitted average annual turnover of both the units, but the same does not match to the minimum average annual turnover of Rs. 150 crore for best three years out of last five financial years. Thus, the technical bid of the petitioner was opened considering it to be a unit in the State of Chhattisgarh.

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12. Admittedly, the petitioner has not submitted minimum average annual turnover of Rs. 1.0 crore for best three years out of last five financial years for the Chhattisgarh unit. Thus, this Court is of the considered opinion that the technical bid of the petitioner was rightly rejected by the Tender Inviting Authority.

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13. In view of the discussion made above, we find no merit in the writ petition. Accordingly, the writ petition stands dismissed .

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Sd/- Sd/- (Santosh Sharma) (Krushna Ram Mohapatra) Judge Chief Justice

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Brijmohan

Oswal Transformers Private Limited v. Chhattisgarh State Power Distribution Company Limited

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Oswal Transformers Private Limited v. Chhattisgarh State Power Distribution Company Limited

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