Manipal Technologies Limited Vs Bank of Baroda (Karnataka High Court)
The Karnataka High Court considered an appeal challenging an interim order by a learned Single Judge refusing interim relief in a writ petition filed by Manipal Technologies Limited (MTL). MTL had participated in a tender floated by Bank of Baroda (BoB) for empanelment of vendors for printing and supplying magnetic strip and variable QR code-printed self-service passbooks. Its bid was rejected at the technical evaluation stage for allegedly failing to satisfy pre-qualification criterion No.14 of the tender, which required that the vendor company and/or its promoters or directors should not be defaulters, should not have credit facilities classified as non-performing accounts (NPAs), and should satisfy other specified eligibility conditions.
MTL challenged both its disqualification and the validity of the impugned eligibility clause. It sought interim directions staying the disqualification, permitting participation in the tender process, and restraining BoB from finalising the tender. The learned Single Judge declined interim relief, leading to the present appeal.
The appellants submitted that MTL had been supplying similar products to BoB and other institutions without complaint and that its disqualification arose not from any deficiency attributable to the company but from the status of one of its directors, Sri T. Gautham Pai. They contended that he had ceased to be a promoter director and had become a professional director, making the tender condition inapplicable. They further argued that the impugned eligibility clause was arbitrary and exclusionary because the financial defaults of a promoter or director had no nexus with the company’s capability to execute the contract.
