(1) A procuring entity may choose to procure the subject matter of procurement by the method of limited bidding, if -
(a) the subject matter of procurement can be supplied only by a limited number of bidders; or
(b) the time and cost involved to examine and evaluate a large number of bids may not be commensurate with the value of the subject matter of procurement; or
(c) owing to an urgency brought about by unforeseen events, the procuring entity is of the opinion that the subject matter of procurement cannot be usefully obtained by adopting the method of open competitive bidding; or
(d) procurement from a category of prospective bidders is necessary in terms of sub-section (2) of section 6.
(2) Subject to the rules as may be made in this behalf, the procedure for limited bidding shall include the following, namely:-
(a) the procuring entity shall issue an invitation to bid by writing directly, and on the same day, to-
(i) all the bidders who can supply the subject matter of procurement in terms of clause (a) of sub-section (1); or
(ii) all the bidders who are registered for the subject matter of procurement with the procuring entity or with any other procuring entity, where procuring entity uses the list of registered bidders of such other procuring entity in terms of subsection (5) of section 19; or
(iii) an adequate number of bidders who can supply the subject matter of procurement selected in a non-discriminatory manner to ensure effective competition, in case of clause (b) of sub-section (1);
(b) a procuring entity may allow all prospective bidders who fulfill the qualification criteria laid down for the procurement, whether an invitation to bid has been issued to such a bidder or not, to participate in the bidding process.