Delhi HC upholds OMCs tender conditions for LPG cylinders
Indian Oil Corp Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corp Ltd – for their tenders for procurement of LPG cylinders.
Under the eligibility criteria of the tenders, cylinder manufacturers having common business ownership or management, including sister companies, could submit only a single bid. This was challenged by a batch of petitioners led by Silica Udyog India and its sister concerns on the grounds that the eligibility criteria were arbitrary and curtailed the capacity of each manufacturing unit owned by them to independently participate in the tender process.
And if not removed, it would have dire implications for them, potentially forcing them to withdraw from the marketplace altogether, they alleged.
However, the OMCs vigorously substantiated their positions by underscoring their prerogative to set the terms and conditions of the tender. They further rationalised the introduction of the restrictions articulating its nexus to the broader goal of procurement optimization.
A bench comprising Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula accepted the stand of the OMCs holding that economic and policy decisions, especially those related to public procurement, must be guided by broader welfare and fairness principles.
