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Patna High Court

Mahavir Pumps Manufacturing Pvt. Ltd.versusThe State of Bihar

Decided
Disposal
ALLOWED

Holding

The debarment was limited to the next tender and therefore ceased to operate, making the rejection of the petitioner’s technical bid unlawful.

Summary

Mahavir Pumps Manufacturing Pvt. Ltd. challenged the rejection of its technical bid for a short‑term re‑tender on the ground that it had been debarred by the Bihar Public Health Engineering Department under memos dated 02‑09‑2020 and 04‑01‑2021. The debarment orders expressly limited the sanction to "the next tender to be notified". The petitioner argued that several tenders have since been issued, so the debarment should have ceased and its bid ought to be considered. The High Court examined whether a debarment that is limited to the next tender can continue indefinitely and whether such continuation violates Rule 11 of the Bihar Contractor Registration Rules, 2007, which requires a specified period for black‑listing or suspension. The Court held that the debarment had indeed expired once the next tender was called and that the department’s reliance on the debarment to reject the technical bid was contrary to the rule. Consequently, the order rejecting the technical bid was set aside and the writ petition was allowed, with the matter remitted to the department for reconsideration of the bid.

Issues considered

  • Whether a debarment order limited to "the next tender" continues to operate for subsequent tenders
  • Whether the continued effect of such a debarment contravenes Rule 11 of the Bihar Contractor Registration Rules, 2007
  • Whether the petitioner’s technical bid can be evaluated despite its name appearing on the debarment list

Subjects

  • debarment
  • tender
  • black‑listing
  • Rule 11
  • Bihar Contractor Registration Rules
  • technical bid
  • writ petition
  • public procurement
  • administrative law

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                    Civil Writ Jurisdiction Case No.16693 of 2025
     ======================================================
     Mahavir Pumps Manufacturing Pvt. Ltd. having its registered Office at 4, Ho-
     Chi-Minh Sarani, KBR Complex, Kolkata West Bengal- 700071 through its
     authorised signatory Debasish Bandyopadhyay, aged about 57 years, Male,
     son of late Sudhir Bandyopadhyay, resident of M/3, Chandra Nath Road,
     Dilip Math, Tiljala, South 24 Parganas, PS- Tiljala, West Bengal 700039.

                                                         ... ... Petitioner/s
                                    Versus
1.   The State of Bihar through the Principal Secretary, Public Health
     Engineering Department, Government of Bihar, Patna.
2.   The Engineer in Chief-cum- Special Secretary, Public Health Engineering
     Department, Bihar, Patna.
3.   The Regional Chief Engineer, Public Health Engineering Department,
     Bhagulpur Zone, Bhagalpur.
4.   The Superintendent Engineer, Public Health Engineering Department, PH
     Circle Munger.
5.   The Superintendent Engineer, Public Health Engineering Department, PH
     Circle Begusarai.
6.   The Executive Engineer, Public Health Engineering Department, PH
     Division Khagaria, Khagaria.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :      Mr. Abhinav Srivastava, Sr. Advocate
                                   Mr. Nirbhay Prashant, Advocate
     For the Respondent/s   :      Mr. P.K. Shahi, Advocate General
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                            and
              HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
                     ORAL JUDGMENT
        (Per: HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA)

      Date : 13-02-2026


                  Heard Mr. Abhinav Srivastava, learned Senior counsel

     for the petitioner and Mr. P.K. Shahi, learned Advocate General for

     the Respondents.
Patna High Court CWJC No.16693 of 2025 dt.13-02-2026
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                    2.    Following reliefs are sought for in the present

       application:

                            “ 1 (i) For issuance of an appropriate writ,
                            order, or direction quashing and setting aside
                            the rejection of the petitioner's technical bid
                            dated 03.10.2025 in the Short Term Re-Tender
                            NIT No. MMNPY- 04/PHED/KHG-2025-26/
                            (SBA/SBFe), which was rejected on the basis
                            of debarment orders dated 02.09.2020 (Memo
                            No. 2256) and 04.01.2021 (Memo No. 33),
                            listed at Serial Nos. 152 & 153 in the
                            debarment list on the official website, as the
                            debarment         orders     themselves    expressly
                            contemplated operation "till the next tender"
                            and have now lapsed, despite which their
                            continued effect is causing ongoing civil
                            consequences to the petitioner, including
                            financial loss, reputational damage, and denial
                            of legitimate business opportunity.
                            (ii) Direct the respondents to consider and
                            evaluate the petitioner's technical bid and
                            open its financial bid in accordance with the
                            terms and conditions of the Tender Document;
                            (iii) Quash the debarment orders dated
                            02.09.2020 (Memo No. 2256) and 04.01.2021
                            (Memo No. 33) issued under Sub-rule (ii) of
                            Rule      11(a)       of   the   Bihar    Contractor
                            Registration Rules, 2007, as arbitrary, illegal,
                            and without jurisdiction;
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                                    In the alternative, for a declaration that
                            the debarment orders dated 02.09.2020 (Memo
                            No. 2256) and 04.01.2021 (Memo No. 33), as
                            the debarment orders themselves expressly
                            contemplated operation "till the next tender",
                            have now ceased to operate, and that their
                            continued listing is causing ongoing civil
                            consequences to the petitioner, including
                            financial loss, reputational damage, and denial
                            of     legitimate       business     opportunity,   and
                            therefore cannot be enforced against the
                            petitioner.
                            (iv) For a direction to the respondents to
                            remove       the      petitioner's   name    from    the
                            debarment list published on the official website
                            of the Public Health Engineering Department,
                            Bihar, Patna, as the debarment orders were
                            operative only till the next tender, have now
                            ceased to operate, and their continued listing
                            is causing ongoing civil consequences to the
                            petitioner,         including        financial      loss,
                            reputational damage, and denial of legitimate
                            business opportunity, and therefore cannot be
                            enforced against the petitioner.
                            (v) For directing Respondent No. 3 to cancel
                            the award of contract or the purchase order, if
                            any;
                            (vi) For directing the Respondent No. 3 not to
                            proceed further or issue any order in the Short
                            Term       Re-Tender          NIT     No.     MMNPY-
Patna High Court CWJC No.16693 of 2025 dt.13-02-2026
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                            04/PHED/KHG-2025-26/(SBA/SBFe) till the
                            final disposal of this writ;
                            (vii) Award the cost of present writ petition to
                            the Petitioner;
                            (viii) For grant of any other relief or reliefs to
                            which the petitioner may be found entitled in
                            the facts and circumstances of the case.”


                    3. Learned counsel for the petitioner submits that he

       does not want to press prayer no. 1(iii) in the writ application.

                    4. Learned counsel for the State submits that the

       petitioner had also submitted its bid in different NIT and upon

       being declared successful, different agreements were entered into

       by the petitioners with Executive Engineer, PH Division, Khagaria

       and an agreement dated 11.10.2019 was executed between the

       petitioner and the Executive Engineer, PH Division, Khagaria.

       The scheduled date of completion of the work of the different

       schemes was six months from the date of execution of work order

       and the respondents are bringing on record the work order where

       the petitioner has not completed the work within the stipulated

       period.      Despite repeated oral and written direction to the

       petitioner, the petitioner had not taken any interest to expedite the

       work of the subject scheme as such the Executive Engineer

       requested the Chief Engineer to debar the petitioner with respect to
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       Agreement No. MBD-185/2019-20. Pursuant to the aforesaid, the

       Chief Engineer issued a show cause notice to the petitioner with a

       direction to submit his explanation till 14.07.2020 failing which

       appropriate action in accordance with Rules shall be taken against

       him. The petitioner even failed to appear in the meeting presided

       by the District Magistrate, Khagaria to review the progress of the

       subject scheme. Thereafter, the Executive Engineer again issued a

       show cause notice dated 09.12.2020 with a direction to submit his

       explanation for not taking interest in the work of subject scheme.

       The petitioner failed to expedite the work of the subject schemes

       and there was no physical progress in the work of the subject

       schemes and thereafter the Department had debarred the petitioner

       vide order dated 04.01.2021.

                    5. Learned counsel for the petitioner submits that earlier

       the authority has issued the debarment order contained in Memo

       No. 33 dated 04.01.2021. The petitioner has challenged the

       debarment order contained in Memo No. 33 dated 04.01.2021 in

       CWJC No. 14930 of 2025 and the same was dismissed “reserving

       liberty to the petitioner to participate in future tender, if he is

       otherwise eligible” vide order dated 10.09.2025.

                    6. Learned counsel for the petitioner submits that the

       respondent Executive Engineer, Public Health Division, Khagaria,
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       issued a Short Term Re-Tender Notice vide Re-Tender NIT

       No. MMNPY-04/PHED/KHG-2025-26/(SBA/SBFe) [hereinafter

       referred as “NIT”] ON 19.08.2025 through e-procurement mode

       on the official website of eProc2 for the work titled for the work in

       question (Annexure-2 of the writ petition).

                    7. Learned counsel for the petitioner submits that the

       respondents uploaded the Financial Bid Sheet, Bill of Quantity

       (BoQ), and the Bidding Document on the official website along

       with the NIT. The petitioner submitted its tender on 04.09.2025.

       Apart from the petitioner, other four participants have also

       participated in the said tender. Learned counsel for the petitioner

       submits that on the same date i.e. 10.09.2025 when the writ court

       has passed the order in CWJC No. 14930 of 2025, the petitioner

       was asked to provide clarification with regard to the debarment

       listed at Serial No. 153 of the debarment list vide Memo No. 2345

       and the same was communicated to the petitioner through an

       email dated 10.09.2025. The petitioner filed his clarification on

       12.09.2025, stating therein that the said debarment order itself

       contemplated operation only in the “next tender” and since the

       date of the debarment, various tenders have been invited either by

       the Department or in the State of Bihar and therefore, the effect of

       the debarment order ceased as soon as the “next tender” was
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       invited. Learned counsel for the petitioner further submits that a

       meeting of the Technical Committee was held on 03.10.2025

       wherein the technical bid of the petitioner was rejected on the

       ground that the bidder had been debarred as reflected at Serial

       Nos. 152 & 153 of the debarment list and the clarification

       submitted by the petitioner was rejected and the same was

       communicated to the petitioner vide Letter No. 2502 dated

       04.10.2025 requesting him to file objections within three days, if

       so advised.       The petitioner filed his objection on 06.10.2025,

       stating therein that the said debarment order itself contemplated

       operation only in the “next tender” and since the date of the

       debarment number of tenders have been invited                by the

       Department or in the State of Bihar, the effect of the debarment

       order stood ceased as soon as the “next tender” was invited.

                    8. The limited issue for consideration before this Court

       is whether debarment can continue for an indefinite period

       particularly when the order itself mentions ‘debarred in next

       tender’ and whether the same is in contravention to Rule 11 of the

       Bihar Contractor Registration Rules, 2007.

                    9. Learned counsel for the petitioner submits that in

       view of the aforesaid, it appears that the Department has debarred

       only in the “next tender to be notified” and after issuing the
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       aforesaid debarment letter, various tenders have been invited either

       by the Department or in the State of Bihar, the effect of the

       debarment order stood ceased as soon as the “next tender” was

       invited.      The Technical Committee while rejecting of the

       petitioner’s bid ignored this explicit limitation and acted contrary

       to the terms of the debarment order. Learned counsel for the

       petitioner relied upon Rule 11 of the Bihar Contractor Registration

       Rules, 2007, which is quoted hereinbelow:

                            “11. Black-Listing and Suspension:-
                                (a) Contractors registered in any of the
                            classes shall be liable for black-listing or
                            demotion to a lower class or suspension for a
                            specified period if he personally or any
                            partner of the firm or company, or any of its
                            director(s)           or    employee(s)    or
                            representative(s) indulge (s) in any of the
                            following malpractices :-
                            (i) Indisciplined behavior with any officer or
                            employee of the concerned department.
                            (ii) Creating law & order problem in
                            Government Office during receipt of tender
                            papers, opening of tenders or any work
                            related thereto;
                            (iii) Threatening or attacking any officer or
                            employee of the department.
                            (iv) Participating in or boycotting tenders by
                            forming a cartel.
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                            (v) On failure to execute the agreement within
                            the stipulated period after allotment of work if
                            repeated on more than one occasion.
                            (vi) Failure to abide by conditions of
                            Agreement and standing instructions therein
                            during execution of work.
                            (vii) Subletting any work without consent of
                            the department to another contractor or any
                            other individual.
                            (viii)    Selling      Government        material   like
                            Cement. Steel and Bitumen etc.
                            (ix) On submission of false or forged security
                            as earnest money and forged documents.
                            (x) On being convicted for any criminal
                            activity.
                            (xi) Submission of tender in such circle in
                            which his close relative(s) is/are posted as
                            divisional accountant or any officer not below
                            the rank of junior engineer. Close relative
                            means husband/wife /mother/father/brother of
                            sister.
                            (xii) In the event of a contractor being
                            blacklisted       by       any   other     Government
                            department.
                            (b) (i) If any person as mentioned in clause
                            11(a) of this rule indulges in any malpractice
                            as described in sub clause (i) to (v) of 11 (a)
                            then the registration of the concerned
                            contractor may be demoted to a lower class
                            permanently. If he indulges in more than one
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                            malpractice as described in sub clause (i) to
                            (v) of 11 (a) then the concerned contractor
                            may be blacklisted.
                            (ii) If any person as mentioned in clause 11(a)
                            of this rule indulges in any malpractice as
                            described in sub clause (vi) to (xii) of 11(a)
                            then the concerned contractor may be black
                            listed.
                            (c) Before black-listing or demoting or
                            suspending any contractor, he shall be given
                            an opportunity to show-cause.


                            (d) The order for black-listing/suspension
                            shall be passed by the officer who is
                            competent to register the contractor or by the
                            officer under whom the registering officer
                            works.
                            (e) The contractor can file an appeal within
                            thirty days against the punishment related
                            black-listing/demotion/suspension before the
                            Commissioner and Secretary/Secretary of the
                            Department.


                    10. Learned counsel for the petitioner submits that Rule

       11 of the Bihar Contractor Registration Rules, 2007, stipulates

       that the blacklisting or demotion to a lower class or suspension can

       only be for a specified period. In the present case, the authority

       has debarred the petitioner only in the “next tender to be notified”
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       and after the debarment order dated 04.01.2021, the State authority

       as well as Department had issued a number of NIT the effect of the

       debarment order ceased as soon as the “next tender” was invited

       by the Department. Apart from aforesaid, the Division Bench of

       this Court by order dated 10.09.2025 passed in CWJC No. 14930

       of 2025 has indicated “reserving liberty to the petitioner to

       participate in future tender, if he is otherwise eligible.

                     11. We have heard learned counsel for the parties.

       From perusal of the debarment order dated 04.01.2021, it is

       evident that the petitioner was debarred only “in the next tender to

       be notified”. Apart from aforesaid, a Coordinate Bench of this

       Court in CWJC No. 14930 of 2025 vide order dated 10.09.2025

       observed that “reserving liberty to the petitioner to participate in

       future tender, if he is otherwise eligible”.       It appears that the

       petitioner was eligible with respect to NIT in question and Rule 11

       of the Bihar Contractor Registration Rules, 2007 stipulates the

       blacklisting or demotion to a lower class or suspension for a

       specified period, and in the present case the debarment was only

       for the next tender to be notified and thereafter a number of

       tenders have been invited by the Department so the petitioner is

       eligible for consideration for the NIT in question.
             Patna High Court CWJC No.16693 of 2025 dt.13-02-2026
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                                 12. In view of the aforesaid, the order dated 03.10.2025

                    (Annexure-P/7) is set aside. The writ petition stands allowed and

                    the matter is remitted back to the respondent-authority for

                    reconsideration of the technical bid of the petitioner in accordance

                    with law.

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

                    disposed of.



                                                               (Sudhir Singh, J)


                                                       ( Rajesh Kumar Verma, J)
Ibrar//-
AFR/NAFR                NAFR
CAV DATE                N.A.
Uploading Date          24.02.2026
Transmission Date       N.A.


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