Patna High Court
M/s. EMS Ltd.versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
The Court held that the petitioner must be afforded a hearing and a reasoned order before any rejection of its technical bid can stand.
Summary
M/s EMS Ltd. filed a writ petition challenging the Tender Committee's decision dated 06.01.2026 to reject its technical bid for the Sasaram Sewerage Network and STP project under AMRUT 2.0, on the ground that an Enforcement Directorate investigation and a debarment order were pending. The petitioner sought quashing of the decision, a direction to reconsider its bid, and an award of the contract. The Court examined whether the rejection without a hearing violated the principles of natural justice and whether the debarment order could be invoked without due process. It held that the petitioner was entitled to a reasoned order after being given an opportunity of hearing. Consequently, the Court directed the Managing Director of BUIDCo to consider the petitioner’s representation and pass a reasoned order within three weeks, and disposed of the writ application.
Issues considered
- Whether the Tender Committee's rejection of the technical bid without a hearing violates the principles of natural justice.
- Whether the pending Enforcement Directorate investigation and debarment order can be validly used to disqualify the bidder.
- Whether the decision of the Tender Committee is liable to be quashed and the bid reconsidered.
Subjects
- tender
- technical bid
- natural justice
- debarment
- writ petition
- public procurement
- AMRUT 2.0
- Enforcement Directorate
- representation
- stay order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1708 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 Chief Secretary, Main Secretariat, Patna.
2. Bihar Urban Infrastructure Development Corporation Ltd., through its Man-
aging Director, Bihar Urban Infrastructure, Development Corporation Ltd.,
Patna.
3. The Managing Director, Bihar Urban Infrastructure Development Corpora-
tion Ltd., Patna.
4. General Manager (Finance), Bihar Urban Infrastructure Development Cor-
poration Ltd., Patna.
5. Chief General Manager, South Bihar Sub-Division, Bihar Urban Infrastruc-
ture Development Corporation Ltd., Patna.
6. General Manager, South Bihar Sub-Division, Bihar Urban Infrastructure De-
velopment 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
For the Respondents : Mr. Lalit Kishore, Sr. Advocate with
Mr. Standing Counsel-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
Committee vide proceeding dated 06.01.2026 in
Sasaram Sewerage Network and STP under
Patna High Court CWJC No.1708 of 2026(2) dt.03-02-2026
2/4
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
Sasaram Sewerage Network and STP under
AMRUT 2.0 which has been rejected by the
decision of the Tender Committee vide
proceedings dated 06.01.2026 (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 Sasaram Sewerage Network and STP 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
Tender Committee vide proceeding dated
06.01.2026 (corresponding to Notice Inviting
Patna High Court CWJC No.1708 of 2026(2) dt.03-02-2026
3/4
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 Sasaram Sewerage Network and STP 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
the date of receipt/production of a copy of this order.
Patna High Court CWJC No.1708 of 2026(2) dt.03-02-2026
4/4
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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