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M.Ramakrishnan v. The District Collector

Madras HC17 Nov 2025WP(MD)/23485/2025

Case brief

AI extract

What is this about?

Ponnamaravathi Special Grade Town Panchayat weekly/daily market fee-collection tender; solvency certificate prerequisite struck down as contrary to G.O.Ms.No.282 dated 26.05.2025 (effective 27.05.2025) discontinuing solvency certificates; tender notification dated 08.08.2025 quashed; fresh tender cum notice ordered; Writ of Certiorarified Mandamus under Article 226; Madras High Court Madurai Bench; Justice P.T.Asha; W.P(MD)No.23485 of 2025; earlier challenge in W.P(MD).No.21656 of 2025; Tamil Nadu Tender Transparency Rules/Act.

What did the court decide?

Impugned tender notification dated 08.08.2025 quashed; respondents directed to issue a fresh tender cum notice for the weekly/daily market following the provisions of the Act and the Government Order and in accordance with law; connected miscellaneous petition closed; no costs. ¶54

M.Ramakrishnan Vs The District Collector — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the impugned tender notification dated 08.08.2025, which made production of a solvency certificate a prerequisite, is in consonance with G.O.Ms.No.282 dated 26.05.2025 discontinuing the issuance of solvency certificates.

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Court's answer

G.O.Ms.No.282 dated 26.05.2025 discontinued the existing process of issuing solvency certificates, fourteen alternative documents being available in lieu thereof, and came into effect on 27.05.2025.

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Ratio / Principle

Despite the Government Order having taken effect on 27.05.2025, the respondents retained the solvency certificate clause in the tender notification issued on 08.08.2025; to that extent the impugned tender notification is not in consonance with the Government Order and is quashed.

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Key takeaways

Extracts of statutory provisions and judicial decisions should not be incorporated in counter affidavits; affidavits are to be sworn by parties who are not aware of such material, which can instead be placed before the Court at the time of arguments.obiter¶39

Detailed headnote1 paragraphs

Tender notification dated 08.08.2025 (Na.Ka.No.146 of 2025) issued by the Executive Officer, Ponnamaravathi Special Grade Town Panchayat for collection of fees in the weekly/daily market made production of a solvency certificate for Rs.20,00,000/- (or, in the alternative, a deposit of Rs.10,00,000/- before 28.08.2025) a prerequisite for bidding. G.O.Ms.No.282, Revenue and Disaster Management Department, dated 26.05.2025 had discontinued the issuance of solvency certificates with effect from 27.05.2025, listing fourteen alternative documents in lieu thereof. Holding that retention of the solvency certificate clause rendered the impugned tender notification not in consonance with the Government Order, the Court quashed the notification and directed the respondents to issue a fresh tender cum notice following the provisions of the Act and the Government Order and in accordance with law. Writ petition allowed; no costs; connected miscellaneous petition closed.

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W.P(MD)No.23485 of 2025

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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

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DATED: 17.11.2025

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CORAM

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THE HONOURABLE MS.JUSTICE P.T.ASHA

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Writ Petition(MD)No.23485 of 2025 and W.M.P(MD).No.18456 of 2025

M.Ramakrishnan

.. Petitioner

1.The District Collector, Pudukkottai, Pudukkottai District.

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2.The Assistant Director, Town Panchayat (Special Grade), Pudukkottai,

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Pudukkottai District.

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3.The Executive Officer, Ponnamaravathi Special Grade Town Panchayat, Ponnamaravathi, Pudukkottai District. .. Respondents

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Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus to call for the records of the impugned tender notification dated 08.08.2025 Na.Ka.No. 146/2025 issued by the third respondent for collecting fee in Weekly Market/ Daily Market belonging to Ponnamaravathi Special Grade Town Panchayat quash the same and consequently direct the third respondent to issue retender

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https://www.mhc.tn.gov.in/judis

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W.P(MD)No.23485 of 2025

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adhering to the Tamil Nadu Tender Transparency Rules for collecting fee in Weekly Market/ Daily Market belonging to Ponnamaravathi Special Grade Town Panchayat.

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For Petitioner : Mr.G.Sailendrababu

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For Respondents : Mrs.D.Farjana Ghoushia Special Government Pleader

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ORDER

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This writ petition is filed seeking for Certiorarified Mandamus to quash the tender notification dated 08.08.2025 in Na.Ka.No.146 of 2025 issued by the third respondent for collecting fee in Weekly Market /Daily Market belonging to Ponnamaravathi Special Grade Town Panchayat and consequential direction to the third respondent to issue re-tender adhering to the Tamil Nadu Tender Transparency Rules for collecting fee in Weekly Market/ Daily Market belonging to Ponnamaravathi Special Grade Town Panchayat.

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The learned counsel appearing for the petitioner would submit that the tender cum public auction for the license for collecting fees in the above referred weekly/ daily market was to be held on 29.08.2025 at the third respondent office. One of the condition of tender was a sum of Rs.5,00,000/- by

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https://www.mhc.tn.gov.in/judis

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W.P(MD)No.23485 of 2025

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way of demand draft has to be taken along with a solvency certificate for a sum of Rs.20,00,000/- and if a person cannot obtain a solvency certificate, he shall deposit a sum of Rs.10,00,000/- with the respondents on or before 28.08.2025. He would submit that the tender cum public auction was not widely published as per the Tamil Nadu Tender Transparency Act. It was only on 18.08.2025 that the petitioner had come to learn about the tender notification. Since the petitioner had participated in the earlier tender auction of the year 2021, the respondents were bound to give notice to the petitioner for the new tender. However, such a notice was not given to the petitioner. The petitioner therefore gave a representation to the respondents to inform him and afford him an opportunity to participate in the tender.

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He would further submit that the demand for submitting a solvency certificate was especially against the policy decision taken in G.O(Ms).No.282, Revenue and Disaster Management Department, Revenue Administration Wing, RA-3(2), dated 26.05.2025. Therefore, the petitioner has come forward with the writ in question.

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The counter affidavit was filed by the third respondent inter alia denying the contentions raised by the petitioner and submitting that the tender

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W.P(MD)No.23485 of 2025

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for granting lease to run the above referred weekly/ daily market for the year 2025-2026 had been floated pursuant to a valid resolution passed by the third respondent Town Panchayat Council vide Resolution No.484, dated 29.01.2025, in ROC No.146/2025, dated 18.07.2025. This notification was challenged earlier by the writ petitioner in W.P(MD).No.21656 of 2025 and when the matter was listed, the respondents decided to withdraw the notification and the same has been informed to the Court, as a result, the Court was pleased to close the writ petition. The re-tender for granting lease to run the said weekly/ daily market for the year 2025-2026 was floated on the valid resolution passed by the third respondent Town Panchayat Council vide Resolution No.582, dated 14.07.2025 in ROC No.146/2025 dated 08.08.2025. Once against, the petitioner has approached this Court, which is nothing, but an attempt to scuttle the tender process.

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The third respondent would submit that the only objection, which has been raised by the petitioner, is production of solvency certificate, which is against G.O.Ms.No.282, Revenue and Disaster Management Department, Revenue Administration Wing, RA-3(2), dated 26.05.2025. However, even in the said Government Order, the Government has ordered to discontinue the issuance of Solvency Certificate by the Revenue Department and alternatives

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have been suggested. Hence, it is well open to the petitioner to submit the alternative documents and participate in the bid. However, without doing so, the petitioner has rushed to Court.

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The third respondent has quoted several judgments in his counter affidavit. This Court has time and again held that extracts of the statutory provisions and judicial decisions should not be incorporated in the counter affidavit, as affidavits are to be sworn by the parties, who are not aware of the above. Such material can be placed before the Court at the time of arguments.

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Heard the learned counsel on either side and perused the materials available on record.

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A perusal of the tender notification dated 08.08.2025 would show that the production of a solvency certificate has been contemplated as a prerequisite. The relevant recital in this regard reads as follows:.

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“Vyk; elj;Jk; mYtyh; mth;fshy; NghJkhdnjd;W fUJk;

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chpa rhd;wpjo; (mjhtJ tl;lhl;rpahplkpUe;J NghJkhd nrhj;Jilath; vd;W) jhf;fy; nra;a Ntz;Lk;> ,y;iyNay; nrhj;J kjpg;gPl;by; fyk; vz;.5y; Fwpg;gpl;l njhifia tq;fp tiuNthiy %ykhf Vy ehSf;F Kjy; ehs; nrYj;jpdhy; jhd;

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W.P(MD)No.23485 of 2025

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Vyk; Nfl;f mDkjpf;fg;gLthh;fs;. chpafhyj;jpy;

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tl;lhl;rpahplkpUe;J nrhj;J kjpg;G rhd;wpjo; (Solvancy Certificate) thq;fp te;J jhf;fy; nra;J mij xg;Gf; nfhz;Ltpl;lhy;> nrhj;J kjpg;gPL rhd;wpjo; toq;fhjjw;F nrYj;jg;gl;l njhif tl;bapd;wp jpUg;gpj;jug;gLk; my;yJ chpkf;fhyk; Kbtile;j gpwF chpkj;njhif KotJk; nrYj;jg;gl;L tpl;lhy; nrhj;J kjpg;gPL rhd;wpjo; toq;fhjjw;F nrYj;jg;gl;l njhif tl;bapd;wp jpUg;gp;f; nfhLf;fg;gLk;.”

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The Government in its wisdom and taking note of the challenges faced in the issuance of solvency certificates issued G.O.Ms.No.282, Revenue and Disaster management Department, Revenue Administration Wing, RA-3(2) Section, dated 26.05.2025. In the said order, the Empowered Committee discussed these challenges and observed that the solvency certificate is no longer relevant for demonstrating financial stability or strength for execution of projects, as there are other documents, fourteen in total, as listed in the Government Order, which can be furnished in lieu of a solvency certificate. Ultimately, the Government accepted the recommendation of the empowered committee and accordingly, directed that the existing process of issuing solvency certificates be discontinued. This Government Order came into effect on 27.05.2025, despite this, when the impugned tender notification has been

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W.P(MD)No.23485 of 2025

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issued on 08.08.2025, the respondents persisted in retaining the said clause. Therefore, to that extent, the impugned tender notification is not in consonance with the Government Order. Therefore, the same is quashed and the respondents are directed to issue a fresh tender cum notice in respect of the petition mentioned weekly/ daily market by following the provisions of the Act as well as Government Order and in accordance with law.

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