Serial No. 116 Supp. Cause List HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR … WP(C) 242/2026 CM(602/2026) M/S MATTOO BUILDERS AND ANOTHER ……...Petitioner(s) Through: Mr. Owais Shafi, Adv. Versus UNION TERRITORY OF J AND K AND OTHERS (PUBLIC WORKS / ROADS AND BUILDINGS) .……Respondent(s) Through: CORAM: HON’BLE MR. JUSTICE MOHD YOUSUF WANI, JUDGE ORDER 13.02.2026 1. Heard the learned counsel for the petitioners. 2. The case of the petitioners, as projected through the medium of the instant petition filed under Article 226 of the Constitution of India, is that their firm is a duly registered partnership firm, validly constituted and carrying on business through its partners. That the firm, being duly recognized under law and acting through its partners, is fully competent to maintain the present writ petition. That the petitioners are aggrieved of acts of omissions and commissions on the part of the respondents in failing to implement and give effect to the relaxation norms prescribed under the Start-up India initiatives and the applicable Public Procurement Policy Works, 2022. That the Start-up Policy is a flagship initiative of the Government of India, formulated with the avowed objective of creating a robust and enabling ecosystem to foster innovation, entrepreneurship, and Start-ups, so as to drive sustainable economic growth and generate large-scale employment opportunities by promoting innovation, creativity, and design-driven solutions. That, in terms of the Order dated 19th July, 2024, read with the relevant provisions of the Public Procurement Policy Works, 2022, the Ministry of Commerce and Industry has included construction under the “works category” and, under sub-para 3(b), extended eligibility to local suppliers for procurements up to Rs. 200 Crore. That in furtherance of these objectives, the Government has consciously introduced relaxations and exemptions in public procurement and tender processes to provide Start-ups a fair and level playing field vis-à-vis established entities. That however, despite the clear mandate, intent, and binding nature of the aforesaid policies and rules, the respondents have acted in blatant disregard thereof by failing to implement the stipulated relaxations, thereby frustrating the very object of the Start-up Policy and unlawfully depriving the petitioners of the benefits and protections envisaged therein. That, the petitioner firm is a duly registered partnership firm, registered with the Government of Jammu and Kashmir, under the name and style of M/S Matoo Builders, having its registered office at Shaheed Gunj, Srinagar. That the petitioner firm has been formally recognized as a Start-up, by the Department for Promotion of Industry and Internal Trade, Ministry of Commerce & Industry, Government of India, and is thereby entitled to all benefits, incentives, and relaxations extended to Start-ups, under the relevant policies and statutory frameworks. That the petitioner firm further holds a valid UDYAM Registration Certificate, issued by the competent authority, evidencing its status as a recognized micro/small enterprise. That in view of aforesaid registrations and recognitions, the petitioner firm squarely falls within the ambit of the Start-up policies and procurement relaxations, notified by Government, and is legally entitled to avail the benefits and protections contemplated there under. That, the petitioner firm has been allotted several contracts by the respondents department from time to time, all of which have been executed diligently, efficiently, and to the complete satisfaction of the concerned authorities, strictly in accordance with the applicable rules, conditions stipulated in the respective allotment orders, and the terms and specifications, contained in the concerned Notice Inviting Tenders. That the petitioner firm has consistently demonstrated professional competence, adherence to contractual obligations, and timely execution of works, as a result of which it has received appreciation and commendation from the respondent department, on multiple occasions, for the successful completion of the allotted contracts. That it is pertinent to state that the petitioner firm has never been subjected to any adverse remarks or penalties, by the respondent department, nor has it ever abandoned or left any allotted contract incomplete or midway, thereby maintaining an unblemished record of performance and credibility. That it is significant to submit that the Government of India, has from time to time, issued various orders, guidelines, and policy directions to the State Governments and Union Territories, for the effective implementation of the objectives, envisaged under the Start-up Policy, initiated at the national level, with the intent to encourage, promote, and nurture Start-ups, across the country. That it is further germane to mention that, in furtherance of the said policy objectives, Rule, 170(i) of the General Financial Rules (GFR),2017,videOrder dated 25th July, 2017, has relaxed the requirement of Earnest Money Deposit/Bid Security, in favour of eligible Start-ups, participating in public procurement and tender processes. That the General Financial Rules, 2O17, being statutory in nature, are fully applicable to the Union Territory of Jammu and Kashmir as well, particularly after the abrogation of Article 370 of the Constitution of India, and are therefore binding upon-the respondent department, who are obligated to strictly adhere to and implement the said relaxations in letter and spirit. That, the respondent department, vide Circular No. CE/RBK/WS 4407-30 dated 21-12-2023, while expressly withdrawing the earlier Circular bearing No. CE/RBK/WS/9187-9220 dated 13-07-2023, has categorically directed all Superintending Engineers and Executive Engineers, being the Tender Inviting Authorities, to strictly adhere to and follow the provisions of the General Financial Rules, 2017, the various procurement manuals, issued by the Department of Expenditure, Government of India, applicable to different categories of public procurement, as well as all other guidelines, circulars, and instructions, issued by the Government of the Union Territory of Jammu and Kashmir, from time to time. That the said circular mandates compliance with the aforesaid statutory rules and policy guidelines, while executing public procurements and while formulating and issuing e-NIT (electronic Notice Inviting Tender) documents, thereby leaving no scope for deviation or non-compliance. That, it is respectfully submitted that the Jammu and Kashmir Start-up Policy, 2024-2027, in clear and unambiguous terms, provides for relaxation of norms, in favour of recognized Start-ups, particularly in the domain of public procurement and tenders. That the said policy, read in conjunction with the circulars and guidelines, issued by the Government of India, expressly envisages and mandates that all departments shall be encouraged to extend and implement such relaxations in public procurement processes, for eligible and recognized Start- ups, so as to promote fair participation and competition. That however, contrary to the spirit, intent, and express provisions of the aforesaid policy and directions, the respondent department has, of late, arbitrarily rejected the bids submitted by the petitioner firm, by declaring its participation as “non-responsive,” thereby acting in blatant violation of the Start-up Policy, the applicable Government of India circulars, as well as its own binding directions. That the petitioners repeatedly approached and represented to the respondents regarding the non- implementation of the Start-up initiatives and the unlawful rejection of bids, however, the respondents failed to provide any cogent or tangible response and have continued to act in disregard of the settled rules, policies, and statutory mandates, causing grave prejudice to the petitioners. That, the petitioners are aggrieved by the acts of omission and commission, on the part of the respondents, in failing to implement and give effect to the relaxation norms, prescribed for Start-up under the General Financial Rules, 2017, as well as under the Jammu and Kashmir Start-up Policy. That the illegal, arbitrary, and discriminatory conduct of the respondent department has resulted in the petitioners being unjustly deprived of the benefits, protections, and rights, conferred upon them, under the Start-up Policy and the various circulars and guidelines, issued by the Government of India from time to time, for the promotion and encouragement of Start-ups. That the continued inaction and deliberate non-implementation of the Start-up Policy, by the respondents is wholly arbitrary, unreasonable, and violative of the settled statutory rules, policy directives, and Constitutional principles, governing public procurement. That left with noefficacious, alternative remedy, the petitioners are, therefore, constrained to invoke the extraordinary writ jurisdiction of this Court, under Article 226 of the Constitution of India, to challenge the arbitrary, illegal, mala fide action and inaction of the respondents. 3. The petitioners have accordingly prayed for issuance of writs in the nature of mandamus for commanding the respondents to implement, in letter and spirit, the Jammu and Kashmir Start-up Policy, 2024-2027, along with the Make-in-India and Start-up initiatives and the applicable Public Procurement Policy Works 2022, issued under the General Financial Rules, including all relaxations, incentives, exemptions, and benefits, expressly provided for recognized Start-ups and local suppliers, and to ensure that all authorities under their control act in strict, fair, transparent, and non- discriminatory compliance therewith, and extend the benefits of the said policies to the petitioners; to strictly adhere and implement the provisions of the General Financial Rules, 2017, including the relaxations under Rule 170(i), applicable to Start-ups, and to follow all guidelines, circulars, and instructions, issued by the Government of India and the Government of Union Territory of Jammu and Kashmir, regarding public procurement and tendering process, without any discrimination or arbitrary denial; to put in place a monitoring and reporting mechanism, to ensure proper operationalization of the Start-ups Policy, including periodic review, reporting to higher authorities, and ensuring that recognized Start-ups are able to avail all benefits without obstruction or delay, as also for further commanding the respondents, to issue clear instructions or SOP’s to all subordinate officials and Tender Inviting Authorities, for implementation of the Start-up Policy, so as to prevent arbitrary non- implementation or selective application of relaxations and benefits; and for restraining them (respondents), from subjecting them (petitioners) to any form of discrimination or official apathy, on account of having approached this Hon’ble Court, for enforcement of their rights. Issuance of the writ of prohibition for restraining the respondents from taking any coercive or arbitrary action, or adopting any practice or conduct that would obstruct or undermine the lawful entitlements of the petitioners, under the Jammu and Kashmir Start-up Policy, 2024-2027, the General Financial Rules, 2017, and other related guidelines, issued by the Government of India or the Government of UT of Jammu and Kashmir, has also been sought. 4. In the facts and circumstances of the case, this Court is of the opinion that matter can be disposed of even at this thresh hold stage by passing of the appropriate direction which is not likely to prejudice the interests of any of the parties. 5. Accordingly, the instant petition is disposed of with the direction to the respondents that they shall treat the instant petition as the representation of the petitioners and actively address the same in accordance with the law governing the field by passing a reasoned order, a copy whereof shall be forwarded to the Registry of this Court within a period of six weeks, for being placed on the record of this file. 6. Disposed of. 1. (MOHD YOUSUF WANI) JUDGE Srinagar 13.02.2026 Sakeena-PS