THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.1228 of 2007 ORDER: The petitioners submitted their tenders in response to a tender notification, dated 08.10.2006. The 3rd respondent was entrusted with the task of processing the tenders to be received through e- procurement system. G.O.Ms.No.245, dated 30.12.2005, through which the e-procurement system was introduced, provided for suspension/ disqualification of such tenderer, who failed to submit the odd copies of the EMD within the stipulated time. The Madanapalle Municipality, the 2nd respondent, addressed a letter, dated 09.11.2006, to the 3rd respondent requesting that the steps be initiated against the petitioners. The same is challenged in this writ petition. Heard learned counsel for the petitioners, learned Standing Counsel for Municipal Corporation and learned Government Pleader for Municipal Administration. In the name of streamlining the process of inviting tenders and assignment of works, the Government has introduced submission of tenders through E-procurement system. However, in case of submission of demand drafts of the EMD, the existing procedure of presenting the actual copies thereof is retained. Curiously, a provision is contained in G.O.Ms.No.245, which is to the effect that in the event of delay in submission of EMD, the tenderer must be suspended or disqualified. Such a provision cannot be countenanced in law. The delay can be on the part of the contractor or sometimes on the part of the officials, who are supposed to receive. Further, the delay in submission of the EMD would at the most disable the tenderer from participating in the process. The Government cannot be said to have sustained any loss on account of such delay. Such an approach would in a way encourage the limiting of tenderers thereby causing burden to the exchequer. It is only when large number of tenderers participate that the actual competition would emerge. Disqualification of tenderers on hyper-technical, purposeless and arbitrary reasons cannot be sustained. At any rate, the so-called disqualification is for a certain period, and even that is over. Hence, the writ petition is allowed and the impugned order is set aside. There shall be no order as costs. _____________________ L. NARASIMHA REDDY, J. Dt.03.02.2011. GJ