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Patna High Court

Urmila SrivastavaversusThe State of Bihar

Decided
Disposal
DISMISSED

Holding

The tender authority’s decision to reject the petitioner’s technical bid was lawful and not arbitrary, so the writ was dismissed.

Summary

The petitioner, a Class‑IV contractor, submitted technical bids for two tenders (Nos. 120154 and 120159) issued by the Bihar Education Department for renovation work at a DIET. The tendering authority disqualified her bids on the ground that she failed to furnish several mandatory documents required under the Notice Inviting Tender. The petitioner argued that she had complied with the eligibility criteria and that her higher quoted percentages should merit award of the work. The respondents contended that the disqualification was based on specific omissions, including GST, turnover, ISO, labour licence and experience certificates. The court examined the statutory principles governing judicial review of tender decisions, citing precedents that interference is permissible only on grounds of arbitrariness, mala‑fide intent, or violation of law. Finding no evidence of illegality or arbitrariness and noting the strict compliance required for tender documents, the court dismissed the writ application.

Issues considered

  • Whether the tender authority’s disqualification of the petitioner’s technical bid for non‑compliance with mandatory tender documents is illegal, arbitrary or mala‑fide.
  • Whether the court can set aside the tender authority’s decision under Article 226 of the Constitution.
  • Whether a higher quoted percentage can override failure to meet eligibility criteria in a tender process.

Subjects

  • tender
  • technical bid
  • disqualification
  • judicial review
  • administrative law
  • public procurement
  • non‑responsive bid
  • natural justice
  • Article 226

Judgment

                     IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.1479 of 2026
                 ======================================================
                 Urmila Srivastava W/o- Anil Kumar, (Proprietor of Rudra Construction), At
                 Present Resident of- Adersh Colony, Digha- Danapur- Khagol, Post and
                 Police Station- Digha, District- Patna, State- Bihar, Indian, Pin 800011.
                 Permanent R/o- Village- Harpur Nag, Post and Thana- Harpur Nag, District-
                 East Champaran, State- Bihar, Pin- 845412.
                                                                          ... ... Petitioner/s
                                                    Versus

           1.    The State of Bihar through the Additional Chief Secretary, Education
                 Department, Govt. of Bihar, Vikash Bhawan, New Secretariat, Patna-
                 800001.
           2.    The Director of State Education Research and Training Board (SERT-
                 Board), Mahendru, Patna-800006.
           3.    The Assistant Engineer, State Education Research and Training Board
                 (SERT-Board), Mahendru, Patna- 800006.
           4.    The Principal of District Institute of Education and Training (DIET)
                 Chhatauni, Motihari, East Champaran.
           5.    The Junior Engineer, District Institute of Education and Training (DIET)
                 Chhatauni, Motihari, East Champaran.
                                                           ... ... Respondent/s
                 ======================================================
                 Appearance :
                 For the Petitioner/s   :      Mr. Ranjit Jha, Advocate
                 For the Respondent/s   :      Mr. Standing Counsel (25)
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                                            and
                         HONOURABLE MR. JUSTICE SUNIL DUTTA MISHRA
                                       ORAL ORDER
                       (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

4   11-03-2026                  Heard learned counsel for the parties.

                               2. The following reliefs have been sought in the

                   present writ application:-

                                     “(i) For set aside and quashing the impugned order
                                  of disqualified the Tender No. 120154 vide Ref. No.
                                  NIT-1 (2025-26) and also set aside the Tender No.
                                  120159 vide Ref. No. NIT-2 (2025-26) (Annexure-P-
                                  04).
                                     (ii) For issuance of a Mandamus directing and
                                  commanding the respondent authorities to restore the
                                  Tender No. 120154 and 120159 of petitioner on
                                  account of her fulfill all criteria of the terms and
                                  conditions for allotment of work by way of this tenders,
                                  and also allotted the work tender to the petitioner on
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                         her high percentage in the larger interest of justice.”

                      3. The brief facts of the case are that the petitioner,

          claiming to be the proprietor of Rudra Construction, a Class-IV

          contractor registered under the Road Construction Department,

          Government of Bihar, bearing Registration No. 252700382, and

          eligible to undertake government works up to Rs. 25,00,000/-,

          participated in the tender process initiated by the Education

          Department, Government of Bihar for renovation work in the

          Principal and Staff Quarter of the District Institute of Education

          and Training (DIET), Chhatauni, Motihari, East Champaran

          pursuant to Tender No. 120154 (Ref. No. NIT-1 (2025-26)) and

          Tender No. 120159 (Ref. No. NIT-2 (2025-26)) issued on

          17.12.2025. The petitioner submitted her bids online on

          26.12.2025 at 05:06 PM for Tender No. 120154 and at 05:23

          PM for Tender No. 120159 and claims that in the comparative

          statement of bidders she had quoted the highest percentage,

          namely 22.10% and 17.70% respectively. However, the

          respondent authorities disqualified the petitioner’s technical bids

          through an e-mail communication on the ground that the

          petitioner had failed to comply with certain mandatory terms

          and conditions of the Notice Inviting Tender (NIT) and had not

          submitted several requisite documents.

                      4. Learned counsel for the petitioner submits that the
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          petitioner had duly participated in the tender process and had

          submitted all the requisite documents in terms of the conditions

          of the NIT. It is submitted that despite complying with the

          eligibility criteria, the petitioner’s technical bid has been

          declared non-responsive by the respondent authorities. It is

          further submitted that the principles adopted for rejecting the

          petitioner’s bid have not been applied uniformly in the case of

          other bidders and they have been declared responsive.

                      5. Learned counsel for the State submits that the

          petitioner’s bid was rejected after due scrutiny of the documents

          submitted by her and upon finding that the petitioner had failed

          to comply with several mandatory requirements of the NIT. It is

          submitted that the petitioner did not furnish the requisite

          documents as required under the tender conditions (clauses 2, 3,

          6, 7, 9, 10, 13, 14) as well as Clause 17 of the NIT, and therefore

          her technical bid was rightly declared non- responsive. In this

          regard, learned counsel for the State has referred to paragraph

          no. 8 of the counter affidavit, wherein the reasons for rejection

          of the petitioner’s bid have been specifically stated. Paragraph 8

          of the counter affidavit reads as under:

                            “8. That in response to the averment made in
                         paragraph no.-10 of the writ petition, it is stated and
                         submitted that the petitioner has made wrong statement
                         that the respondents have arbitrarily disqualified the
                         petitioner's Tender in this regard, it is humbly
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                         submitted that the petitioner has failed to submit the
                         Tender form as per the terms and conditions of N.I.T.
                         i.e.
                         I. An Attested copy of GST Registration certificate and
                         2024-25 monthly return of GSTR-3B having 1 Cr.
                         Turnover.
                         II. An attested copy of certificate of Annual turn over 1
                         Cr. of last 2 financial year i.e. 2023-24 and 2024-25.
                         III. An attested copy of certificate of ISO9001-2015
                         IV. A copy of work order/copy of contract agreement/
                         completion certificate as per RFP attested.
                         V. An attested copy of Labour license certificate.
                         VI. Experience certificate of similar work with
                         minimum of 30% of NIT work value.”

                      6. Having considered the submissions advanced on

          behalf of the parties and upon perusal of the materials available

          on record, this Court finds that the technical bid of the petitioner

          has been rejected on the ground that the petitioner failed to

          submit several mandatory documents required under the terms

          and conditions of the NIT. The relevant terms and conditions of

          the NIT are extracted as under:-

                         “1. Bidder Information On letter head.
                         2. Legal Entity Documents as per RFP attested.
                         3. Adhaar Udyam registration Certificate attested.
                         4. GST Registration Certificate and 2024-25 monthly
                         return of GSTR-3 B having 1 Cr. Turnover attested.
                         5. Copy of Pan Card attested.
                         6. Certificate of Annual turnover 1 Cr. of last 2
                         financial year attested i.e. 2023-24 & 2024-25.
                         7. Last 2 year audited balance sheet and a certificate
                         from statutory auditor for positive net worth with valid
                         UDIN No attested.
                         8. Self-declaration by the bidder for not being
                         blacklisted/Debarred as per RFP.
                         9. ISO 9001:2015 certificates attested.
                         10. Copy of work order/copy of contract
                         agreement/competition certificate As per RFP attested.
                         11. Class-4 Registration certificate attested.
                         12. Character Certificate current attested.
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                         13. Trade License Current attested.
                         14. Labour License Certificate attested.”

                       7. It is well settled that in matters relating to

          government contracts and tenders, the terms and conditions of

          the tender document are binding upon all the bidders and strict

          compliance with the eligibility criteria is required. The

          evaluation of technical bids falls within the domain of the

          tendering authority and judicial review in such matters is

          limited. Unless the decision of the authority is shown to be

          arbitrary, malafide or in violation of statutory provisions, the

          Court would be reluctant in interfering with such administrative

          decisions.

                       8. At this juncture, it is pertinent to take note of the

          decision rendered while deciding the case of Tata Cellular v.

          Union of India reported in (1994) 6 SCC 651, wherein

          following observation was made:

                         “77. The duty of the court is to confine itself to the
                         question of legality. Its concern should be:
                         1. Whether a decision-making authority exceeded its
                         powers?
                         2. Committed an error of law,
                         3. committed a breach of the rules of natural justice,
                         4. reached a decision which no reasonable tribunal
                         would have reached or,
                         5. abused its powers.
                         Therefore, it is not for the court to determine
                         whether a particular policy or particular decision
                         taken in the fulfilment of that policy is fair. It is only
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                         concerned with the manner in which those
                         decisions have been taken. The extent of the duty to
                         act fairly will vary from case to case. Shortly put,
                         the grounds upon which an administrative action is
                         subject to control by judicial review can be
                         classified as under:
                         (i) Illegality: This means the decision-maker must
                         understand correctly the law that regulates his
                         decision-making power and must give effect to it.
                         (ii)    Irrationality,          namely,    Wednesbury
                         unreasonableness.
                         (iii) Procedural impropriety.”


                      9. Similarly, in Jagdish Mandal v. State of Orissa,

          reported in (2007) 14 SCC 517, the Hon’ble Supreme Court

          observed that interference in tender matters is warranted only

          when the decision is shown to be arbitrary, mala fide or intended

          to favour someone, and that courts should not interfere merely

          because another view is possible. The relevant extract of the

          said order reads as follows:

                         “22. Judicial review of administrative action is
                         intended to prevent arbitrariness, irrationality,
                         unreasonableness, bias and mala fides. Its purpose
                         is to check whether choice or decision is made
                         “lawfully” and not to check whether choice or
                         decision is “sound”. When the power of judicial
                         review is invoked in matters relating to tenders or
                         award of contracts, certain special features should
                         be borne in mind. A contract is a commercial
                         transaction. Evaluating tenders and awarding
                         contracts are essentially commercial functions.
                         Principles of equity and natural justice stay at a
                         distance. If the decision relating to award of
                         contract is bona fide and is in public interest,
                         courts will not, in exercise of power of judicial
                         review, interfere even if a procedural aberration or
                         error in assessment or prejudice to a tenderer, is
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                         made out. The power of judicial review will not be
                         permitted to be invoked to protect private interest at
                         the cost of public interest, or to decide contractual
                         disputes. The tenderer or contractor with a
                         grievance can always seek damages in a civil court.
                         Attempts by unsuccessful tenderers with imaginary
                         grievances, wounded pride and business rivalry, to
                         make mountains out of molehills of some
                         technical/procedural violation or some prejudice to
                         self, and persuade courts to interfere by exercising
                         power of judicial review, should be resisted. Such
                         interferences, either interim or final, may hold up
                         public works for years, or delay relief and succour
                         to thousands and millions and may increase the
                         project cost manifold. Therefore, a court before
                         interfering in tender or contractual matters in
                         exercise of power of judicial review, should pose to
                         itself the following questions:
                         (i) Whether the process adopted or decision made
                         by the authority is mala fide or intended to favour
                         someone;
                                                  OR

                         Whether the process adopted or decision made is so
                         arbitrary and irrational that the court can say: “the
                         decision is such that no responsible authority
                         acting reasonably and in accordance with relevant
                         law could have reached”;
                         (ii) Whether public interest is affected.
                         If the answers are in the negative, there should be
                         no interference under Article 226. Cases involving
                         blacklisting or imposition of penal consequences on
                         a tenderer/contractor or distribution of State
                         largesse (allotment of sites/shops, grant of licences,
                         dealerships and franchises) stand on a different
                         footing as they may require a higher degree of
                         fairness in action.”


                      10. Again, in Afcons Infrastructure Ltd. v. Nagpur

          Metro Rail Corporation Ltd. reported in (2016) 16 SCC 818,

          the Hon’ble Supreme Court has held that the interpretation of

          tender conditions is primarily within the domain of the
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          tendering authority and courts should normally defer to the

          decision of the authority unless it is perverse or arbitrary. The

          relevant extract of said order reads as:

                         “15. We may add that the owner or the employer of
                         a project, having authored the tender documents, is
                         the best person to understand and appreciate its
                         requirements and interpret its documents. The
                         constitutional courts must defer to this
                         understanding and appreciation of the tender
                         documents, unless there is mala fide or perversity
                         in the understanding or appreciation or in the
                         application of the terms of the tender conditions. It
                         is possible that the owner or employer of a project
                         may give an interpretation to the tender documents
                         that is not acceptable to the constitutional courts
                         but that by itself is not a reason for interfering with
                         the interpretation given.”

                      11. In the present case, the respondents have clearly

          stated that the petitioner had failed to submit several documents

          as required under the NIT and therefore her technical bid was

          declared non-responsive. The petitioner has not been able to

          demonstrate before this Court that the mandatory conditions of

          the NIT were duly complied with or that the decision of the

          respondents suffers from any arbitrariness or illegality.

                      12. Merely because the petitioner claims to have

          quoted a higher percentage would not entitle her to claim

          allotment of the work if her technical bid itself does not satisfy

          the eligibility criteria prescribed under the tender conditions.

                      13. In view of the aforesaid facts and settled legal
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                      principles governing judicial review in tender matters, this

                      Court does not find any illegality or arbitrariness in the decision

                      of the respondent authorities in rejecting the petitioner’s

                      technical bid.

                                  14. Accordingly, the present writ application stands

                      dismissed as being devoid of any merit.

                                  15. However, it is expected that the same principle

                      which has been adopted for rejecting the technical bid of the

                      petitioner shall also be followed uniformly in the case of the

                      other bidders, so as to maintain transparency and fairness in the

                      tender process.

                                  16. Pending application(s), if any, shall also stand

                      disposed of.



                                                  (Sudhir Singh, J)


                                              (Sunil Dutta Mishra, J)
utkarsh/-
U


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