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Patna High Court

M/s. EMS Ltd.versusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The Court held that the Tender Committee's rejection of the technical bid without a hearing was untenable and directed the respondent to consider the petitioner’s representation and pass a reasoned order.

Summary

M/s EMS Ltd. filed a writ petition challenging the Tender Committee's decision to reject its technical bid for the Buxar Sewerage Network project under AMRUT 2.0 on the ground that an Enforcement Directorate investigation and a debarment order existed, without being given a personal hearing. The petitioner sought quashing of the decision, reconsideration of its bid, declaration of technical qualification, and direction to award the contract. The High Court observed that the petitioner’s representation before the Managing Director of BUIDCo remained pending and that the rejection without an opportunity of hearing violated principles of natural justice. Consequently, the Court directed the Managing Director to consider the representation, afford a hearing to all stakeholders, and pass a reasoned order within three weeks. The writ application was thereafter disposed of.

Issues considered

  • Whether the rejection of a technical bid on the basis of an ongoing ED investigation and a debarment order, without affording a personal hearing, violates the principles of natural justice.
  • Whether the Tender Committee's decision can be quashed in a writ petition under these circumstances.

Subjects

  • tender
  • technical bid
  • natural justice
  • debarment
  • Enforcement Directorate
  • AMRUT
  • writ petition
  • public procurement
  • Bihar Urban Infrastructure Development Corporation

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.1692 of 2026
                 ======================================================
                 M/s. EMS Ltd. having its registered office at C-88, RDC, Raj Nagar,
                 Ghaziabad, Uttar Pradesh through its authorized signatory, namely, Satish
                 Kumar Styarthy, male, aged about 34 years, S/o Ram Kumar, R/o Mohanpur,
                 P.O. Mohanpur, P.S. Bidupur, District- Vaishali, Bihar.

                                                                                    ... ... Petitioner
                                              Versus
           1.    The State of Bihar through the through the Chief Secretary, Main
                 Secretariat, Patna
           2.    Bihar Urban Infrastructure Development Corporation Ltd. through its
                 Managing Director, Bihar Urban Infrastructure Development Corporation
                 Ltd., Patna.
           3.    The Managing Director,          Bihar   Urban     Infrastructure     Development
                 Corporation Ltd., Patna
           4.    General Manager (Finance), Bihar Urban Infrastructure Development
                 Corporation Ltd., Patna
           5.    Chief General Manager, South Bihar Sub-Division, Bihar Urban
                 Infrastructure Development Corporation Ltd., Patna.
           6.    General Manager, South Bihar Sub-Division, Bihar Urban Infrastructure
                 Development Corporation Ltd., Patna.
           7.    Engineer-In-Chief, Urban Development and Housing Department, Patna.

                                                           ... ... Respondents
                 ======================================================
                 Appearance :
                 For the Petitioner     :        Mr. Ratnesh Kumar, Advocate
                                                 Mrs. Parul Prasad, Advocate
                                                 Mr. Aditya Anand, Advocate
                                                 Mr. Ansh Prasad, Advocate
                 For the State          :        Mr. Lalit Kishore, Sr. Advocate with
                                                 Mr. Sushmita Sharma, AC to SC-9
                                                 Ms. Vagisha Pragya, AC to SC-9
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                                            and
                         HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
                                       ORAL ORDER

                          (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

2   03-02-2026                   The following reliefs have been sought in the present

                   writ application:-

                                            “(i) Quashing of the decision of the Tender
Patna High Court CWJC No.1692 of 2026(2) dt.03-02-2026
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                                  Committee vide proceeding dated 05.01.2026 in
                                  Buxar Sewerage Network under AMRUT 2.0
                                  (corresponding to Notice Inviting Tender No.
                                  BUIDCO/YO-3256/2025- 28 dated 09.06.2025)
                                  by which without affording any opportunity of
                                  personal hearing, the technical bid of the
                                  Petitioner has been rejected on the ground of
                                  pendency of investigation being carried out by
                                  the    Enforcement       Directorate   (ED)     and
                                  operation of the debarment order passed by the
                                  Project     Director,     Munger,    Bihar    Urban
                                  Infrastructure         Development     Corporation
                                  Limited (hereinafter referred to as BUIDCo)
                                  vide Letter No.07 dated 02.01.2026.
                                  (ii) Direction upon the Respondent BUIDCo to
                                  reconsider the technical bid of the Petitioner in
                                  Buxar Sewerage Network under AMRUT 2.0
                                  which has been rejected by the decision of the
                                  Tender Committee vide proceedings dated
                                  05.01.2026 (corresponding to Notice Inviting
                                  Tender No. BUIDCO/YO-3256/2025-28 dated
                                  09.06.2025).
                                  (iii) Direction upon the respondents to declare
                                  M/s EMS Ltd., as technically qualified in
                                  connection with the bid submitted for the work
                                  of Buxar Sewerage Network under AMRUT 2.0
                                  (corresponding to Notice Inviting Tender No.
                                  BUIDCO/YO-3256/ 2025- 28 dated 09.06.2025)
                                  and subsequently, open the financial bid and
                                  award the work to the Petitioner, if found
                                  successful.
                                  (iv) Stay the operation of the decision of the
Patna High Court CWJC No.1692 of 2026(2) dt.03-02-2026
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                                  Tender     Committee      vide   proceeding   dated
                                  05.01.2026 (corresponding to Notice Inviting
                                  Tender No. BUIDCO/YO-3256/ 2025- 28 dated
                                  09.06.2025) during the pendency and or without
                                  the leave of this Hon'ble Court.
                                  (v)      Alternatively,    direction   upon     the
                                  Respondents to declare the Petitioner to be
                                  provisionally successful in the technical bid in
                                  connection with the bid submitted for the work
                                  of Buxar Sewerage Network under AMRUT 2.0
                                  (corresponding to Notice Inviting Tender No.
                                  BUIDCO/YO-3256/2025-28 dated 09.06.2025)
                                  and subsequently, open the financial bid of the
                                  Petitioner and award the work subject to the
                                  decision in present writ petition.
                                  (vi) And pass any other appropriate order(s)
                                  that this Hon'ble Court may deem fit and proper
                                  in the facts and circumstances of the present
                                  case.”



                      2. For redressal of his grievance, the petitioner had

          submitted a representation vide Annexure ‘P/4’, before

          respondent No.3, which is pending till date.

                      3. Considering the facts and circumstances of the

          case, respondent No.3 is directed to consider the representation

          of the petitioner and pass a reasoned and speaking order, in

          accordance with law after giving an opportunity of hearing to all

          the stakeholders preferably within a period of three weeks from
         Patna High Court CWJC No.1692 of 2026(2) dt.03-02-2026
                                                     4/4




                   the date of receipt/production of a copy of this order.

                               4. With the aforesaid observation, the writ application

                   stands disposed of.

                               5. Pending application(s), if any, shall stand disposed

                   of.


                                                           (Sudhir Singh, J.)


                                                     (Rajesh Kumar Verma, J.)

Gaurav Kumar,
Ibrar/-

U


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