No Rational Nexus In Restricting Hospital Sanitation Tenders To Those With In-State Experience: Himachal Pradesh High Court

The Himachal Pradesh High Court passed directions in a case which challenges Clause F(c) in the Notices Inviting Tenders issued by the Health & Family Welfare Department.For reference: “Clause F(c) prescribes that only firms with prior experience of hospital sanitation within the State of Himachal Pradesh shall be eligible to tender for sanitation services in public health institutions.”Pursuant to the petition, the Court recorded a representation which was addressed to the Principal Secretary, Department of Health & Family Welfare, and observed that there appears to be no rational nexus between the restrictive eligibility clause and the stated objective of ensuring quality sanitation services. Thus, Division Bench of Chief Justice G.S. Sandhawalia and Justice Jiya Lal Bhardwaj disposed of the petition with a direction to the respondents-State to take a decision on the representation within four weeks, and to ensure that any order rejecting the representation is accompanied by valid reasons.Background: The petitioner raised profound public-procurement and competition concerns by challenging an eligibility condition that excludes a large class of bona fide sanitation contractors who possess verifiable, statutory-compliant sanitation experience with Municipal Councils, Nagar Panchayats and other government bodies.It was further submitted by the petitioner that high-standard municipal/public sanitation contracts require compliance with the Solid Waste Management Rules, 2016 and related hygiene and disposal protocols that are substantially similar to hospital sanitation requirements.Also that Clause F(c) is alleged to produce cartelisation, narrow competition, and an artificial barrier to market entry, hereby imposing an avoidable cost on the public exchequer and denying equal opportunity to competent contractors.The outcome of this petition will affect how procurement authorities frame eligibility criteria for essential public services. If the restriction continues without proper justification, bona fide contractors with relevant, statutory-compliant sanitation experience will be excluded from participation. However, on the other hand, a decision that treats equivalent sanitation experience as valid will promote fair competition, reduce costs, and improve the delivery of sanitation services in health institutions.Case Name: M/s Tania International Company l v/s State of H.P. and others Case No.: CWP No. 1834 of 2018Date of Decision: 10.12.2025For the Petitioner: Ms. Anuja Mehta, Proxy Counsel.For the Respondents: Mr. Gobind Korla, Additional Advocate General, for the respondents-State.Click Here To Read/Download Order

No Rational Nexus In Restricting Hospital Sanitation Tenders To Those With In-State Experience: Himachal Pradesh High Court

Mehak Aggarwal

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