Jammu & Kashmir High Court Rules MSE Procurement Preference Inapplicable to Composite SIT Contracts

The Jammu & Kashmir High Court has held that the mandatory procurement preference for Micro & Small Enterprises (MSEs) under public tenders does not apply to composite "Supply, Installation, and Testing" (SIT) contracts.

The Court dismissed a writ petition challenging tender conditions on the ground of non-compliance with the MSE procurement mandate, holding that while the policy provisions enjoy statutory backing under the MSMED Act, their application is systemic rather than contract-specific.

The Court clarified that MSE benefits are limited to pure goods supply contracts, not bundled service agreements.

The verdict came in a challenge against a J&K government tender, where bidders argued for MSE quota enforcement. 

[Zain Electricals, Industrial Estate v Jammu & Kashmir]