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
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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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