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MSME Turnover Relaxation Circular Creates No Enforceable Right in Tender: J&K HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 11720
Case Name
Pro Health Scientific Pvt. Ltd. Vs Union Territory of Jammu & Kashmir (Jammu and Kashmir and Ladakh High Court)
Date of Judgement/Order
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Pro Health Scientific Pvt. Ltd. Vs Union Territory of Jammu & Kashmir (Jammu and Kashmir and Ladakh High Court)

Summary: The Jammu and Kashmir and Ladakh High Court dismissed the writ petition filed by Pro Health Scientific Pvt. Ltd. challenging its rejection from a tender process for procurement of “Machinery & Equipment” involving an Anatomy Virtual Dissection Table. The tender, NIT No. NIT/JKMSCL/M&E/2025/655 dated 28.02.2025, required the Indian Subsidiary of the Principal Manufacturer/Sole Importer to have an average annual turnover of Rs. 5 crores for the financial years 2021-22, 2022-23 and 2023-24, supported by a Chartered Accountant/competent authority certificate with UDIN, along with audited balance sheets and profit and loss accounts for those financial years.

The petitioner stated that it commenced business only in 2022 and therefore could not furnish turnover for 2021-22. It contended that because the bid submission deadline had been extended to 26.04.2025, the latest financial year, 2024-25, should have been considered. The petitioner submitted turnover details for 2022-23, 2023-24 and 2024-25 and argued that these satisfied the turnover requirement. It also relied on a Government of India, Ministry of Micro, Small and Medium Enterprises circular dated 10.03.2016 concerning relaxation of prior turnover and experience requirements for Micro and Small Enterprises, and cited earlier tenders in which it claimed similar relaxation had been granted.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,987

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