Tender Condition Requiring Past Supply Within One State Irrational, Violates Article 19(1)(g) : Supreme Court

The Supreme Court struck down a Chhattisgarh tender condition which required bidders to show prior supply experience to state government agencies within the State (₹6 crore in past three years) for participation in tenders to supply sports kits. The Bench found the condition irrational and disproportionate, holding it created an artificial barrier that excluded capable national suppliers and offended the doctrine of level playing field. The Court emphasised that eligibility criteria for public procurement must have a rational nexus with contract purpose and cannot arbitrarily favour local vendors or foster cartelisation. It rejected the State’s security and logistical justifications, observing the tender involved non-sensitive goods and local logistics can be handled via supply chains. The decision sets a strong precedent on procurement fairness, reiterating that states cannot impose protectionist supply-experience clauses that curtail Article 19(1)(g) trade freedoms and Article 14 equality principles.