In Brief
Vinishma Technologies, an experienced supplier to other states, challenged a tender issued by Chhattisgarh for supplying Sports Kits to government schools. The tender restricted participation to bidders with prior supply experience within Chhattisgarh. The Supreme Court held that this condition was arbitrary and unconstitutional. It violated the right to equality (Article 14) and freedom of trade (Article 19(1)(g)) by creating artificial barriers that excluded competent suppliers without rational cause. The Court reasoned that eligibility criteria must relate to the actual objective—obtaining quality goods—not the location of previous performance. The tender condition had no nexus to the subject matter and promoted cartelization. The Court quashed the tender notices and allowed the appeals, permitting fresh tender issuance without geographic restrictions.
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