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Patna High Court

M/s Kunal HousewaresversusThe State of Bihar

Decided
Disposal
DISMISSED

Holding

The court held that there was no ground for judicial interference as the technical evaluation by IIT Patna was not arbitrary or mala‑fide, and the court must not intervene in the tender process at this belated stage.

Summary

M/s Kunal Housewares challenged its disqualification from a government tender (NIT No. ICDS‑01‑25‑26) for supplying utensils, alleging violation of natural justice because the technical evaluation report of IIT Patna was not explained and the petitioner was not given a fair opportunity. The State argued that the tender documents required laboratory testing of samples and that IIT Patna’s report objectively found the petitioner’s sample non‑conforming, justifying the disqualification. The court examined the limited scope of judicial review in works‑contract matters and held that the technical assessment was a commercial decision best left to the employer, absent any showing of arbitrariness, bias or mala‑fide. Citing precedents that courts must exercise restraint in tender disputes, the bench declined to interfere with the tender process at this advanced stage. Consequently, the writ petition seeking quashing of the technical and financial decisions, a mandamus, and an interim stay was dismissed.

Issues considered

  • Whether the petitioner’s disqualification at the technical evaluation stage, based on the IIT Patna report, violated principles of natural justice warranting judicial intervention.
  • Whether the High Court can, under Article 226, interfere with a completed tender process and award of contract.
  • Whether an interim stay of the tender proceedings should be granted pending the writ petition.
  • Whether the tender evaluation exhibits arbitrariness, irrationality, or mala‑fide that justifies judicial review.

Legislation cited

Subjects

  • tender
  • natural justice
  • judicial review
  • technical evaluation
  • disqualification
  • public procurement
  • Article 226
  • works contract
  • procedural fairness

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                               Civil Writ Jurisdiction Case No.2081 of 2026
                 ======================================================
                 M/s Kunal Housewares, a company incorporated under the Companies Act,
                 1956, having its registered office at 51/61, Manor Palghar Road, Netali
                 Village, Palghar (E), District-Palghar, Maharashtra-401404 through its
                 Authorized Representative Mr. Amitav Arun, aged about 52 years, S/o
                 Rajnikant Arun, Resident of House No. 337, Road No. 3-I, G.D. Mishra
                 Road, New Patliputra Colony, Patna, Bihar-800013.

                                                                              ... ... Petitioner
                                                    Versus
           1.    The State of Bihar through the Secretary, Social Welfare Department, Annex
                 Building-4, Old Secretariat, Patna-800001.
           2.    Secretary, Social Welfare Department, office at Annex Building-4, Old
                 Secretariat, Patna-800001.
           3.    Director, Integrated Child Development Services (ICDS), office at ICDS
                 Directorate (Social Welfare Department), 2nd Floor, Indira Bhawan, Ram
                 Charitra Singh Path, Patna-800001.
           4.    M/s Worldfa Exports Pvt. Ltd. through its Director, situated at Plot No. 449-
                 450, Near HSIIDC Office Sector-53, Kundali, Sonepat, Haryana-131028
                 having registered office at Plot No. 20, Road No. 78, Punjabi Bagh, West,
                 New Delhi-110026.
           5.    Vaidya Industries through its Proprietor, situated at Plot No. A5, Khasara
                 No. 89, Besa-Ghogali Main Road, Beltarodi, Nagpur Maharashtra-440037.

                                                           ... ... Respondents
                 ======================================================
                 Appearance :
                 For the Petitioner     :      Mr. Abhinav Srivastava, Sr. Advocate and Mr.
                                              Aayush Abhishek, Advocate
                 For the State          :      Mr. P.K. Shahi, Advocate General and Mr. Amish
                                              Kumar, A.C. to Advocate General
                 For the Respondent No.4:     Mr. Praveen Chandra, Advocate and Mr. Madhav
                                              Raj, Advocate
                 For the Respondent No.5:     Mr. Y.V. Giri, Sr. Advocate, Mr. Pronav Kumar,
                                              Advocate and Ms. Shrishti Singh, Advocate

                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
                         and
                         HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

4   25-02-2026                   Heard learned senior counsel for the petitioner and

                   learned counsel for the respondents.
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                      2. The following reliefs have been sought for by the

          petitioner in the present writ application:

                                 “(i)    For      appropriate    order/orders     or
                                 direction/directions or writ in the nature of
                                 writ of certiorari quashing the technical bid
                                 decision dated 05.01.2026, whereby the
                                 petitioner has been disqualified without
                                 giving clear and specific reasons in absolute
                                 violation of principles of natural justice in
                                 respect of NIT No. ICDS-01-25-26 issued by
                                 the     Directorate       of   Integrated     Child
                                 Development Services under the Social
                                 Welfare Department, Bihar, Patna;
                                 (ii)    For      appropriate    order/orders     or
                                 direction/directions or writ in the nature of
                                 writ of certiorari quashing the financial bid
                                 decision         dated    09.01.2026        whereby
                                 respondents 4 and 5 have been declared
                                 successful without giving the petitioner a fair
                                 opportunity        in    absolute   violation    of
                                 principles of natural justice in respect of NIT
                                 No. ICDS-01/25-26 issued by the Directorate
                                 of Integrated Child Development Services
                                 under the Social Welfare Department, Bihar;
                                 (iii)   For      appropriate    order/orders     or
                                 direction/directions or writ in the nature of
                                 writ of mandamus for directions upon the
                                 Respondents to hold the petitioner qualified
                                 and     allow      the   present    petitioner   to
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                                 participate in the onging tender proceedings
                                 under NIT No. ICDS-01/25-26 issued by the
                                 Directorate of Integrated Child Development
                                 Services         under   the    Social      Welfare
                                 Department, Bihar;
                                 (iv)    For      appropriate    order/orders    or
                                 direction/directions in the nature of writ of
                                 mandamus for issuance of an ad-interim stay
                                 on the proceedings in respect of the tender
                                 bearing NIT No. ICDS-01/25-26, issued by
                                 the     Directorate      of    Integrated    Child
                                 Development Services under the Social
                                 Welfare Department of Bihar, during the
                                 pendency of the instant writ application and
                                 refrain from issuing work order in favour of
                                 the purported successful bidder or create any
                                 third-party rights in favour of purported
                                 successful bidder;
                                 (v) Pass any other order/orders as deemed fit
                                 and appropriate by this Court.”


                         3. The brief facts of the present case are that the

          petitioner participated in NIT No. ICDS – 01/25-26 dated

          22.08.2025 for supply of utensils. The bids for the said NIT

          were to be evaluated in three stages: i) Evaluation of Physical

          Samples; ii) Technical Evaluation and iii) Financial Evaluation.

          As per Clause 3.18 A (x) of the Tender Document, the bidders

          had to submit sample of utensils for physical evaluation. The
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          petitioner submitted the same, however, vide e-mail dated

          05.01.2026, he was disqualified at the first stage itself on the

          ground that certain non-conformities were found in the sample

          submitted by the petitioner. By way of the present writ

          application, the petitioner challenges his disqualification in the

          present tender process.

                         4. Learned counsel for the petitioner submits that

          the petitioner has been wrongly disqualified at the very first

          stage, and that the samples which were submitted by the

          petitioner were as per the requirements of the NIT. Learned

          counsel for the petitioner further submits that the petitioner got

          the samples, which were submitted, checked independently and

          they were as per the requirement of the NIT, and he made a

          representation to the respondent authorities with a copy of the

          same, but has received no response from them. Learned counsel

          further submits that the manner and the process by which the

          petitioner has been disqualified is replete with multiple

          instances of violation of the terms of Tender Document, and is

          in absolute violation of principles of Natural Justice.

                         5. Learned counsel for the State, submits that in the

          present tender process, as per Clause 3.18 A (x) of the NIT, the

          samples of utensils were to be sent to a Central Government
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          Laboratory for testing and only those bidders whose samples

          successfully qualified in laboratory test would be eligible for

          opening of technical bid. The relevant clause is reproduced as

          under:

                                           “A. General Eligibility Criteria
                                           …
                                           (x) The sample of Utensils shall be
                           sent to a Central Government laboratory for
                           testing. Only those bidders whose samples
                           successfully qualify in the laboratory test shall be
                           eligible for opening of the Technical Bid, while
                           the bids of unsuccessful bidders shall be
                           rejected.”


                           6. Learned counsel for the State further submits

          that in compliance with the said provision, the samples were

          sent to IIT, Patna (Department of Metallurgy & Material

          Engineering). IIT, Patna submitted its report dated 16.12.2025,

          based on which impugned action in the present tender process

          was taken. The said report is marked as ‘Annexure R/1 to 3B’ to

          the counter affidavit filed on behalf of Respondent No. 1 to 3.

          Learned counsel further submits that from perusal of the said

          report it is clear that the quality of samples of utensil submitted

          by the petitioner was not as per specifications and materials

          mentioned in the NIT.
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                         7. Per contra, learned counsel for the petitioner

          submits that although the report categorically states that the

          petitioner’s sample are not as per the requirements of the NIT,

          but a detailed perusal of the report would show that the samples

          supplied by the petitioner substantially meet the standards

          mentioned in NIT. Learned counsel further submits that only

          due to certain insignificant differences in the sample supplied by

          the petitioner, the technical bid of the petitioner had not been

          opened. Those insignificant differences/infirmities could not

          have brought any material change in the sample supplied by the

          petitioner.

                         8. Further, learned counsel for the State, and the

          private respondents submit that the present tender process has

          attained finality. In the present tender process, work has already

          been awarded to the private respondents, and an agreement has

          also been executed in respect of the same. It is submitted that a

          portion of work has already been completed, and as such,

          interference by the court at a belated stage is not warranted.

                         9. The limited issue for consideration before this

          court is that whether this Court should exercise its discretionary

          powers to interfere in the ongoing tender process at this belated

          stage, specifically in light of the adverse findings provided by
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          an independent expert body, namely IIT Patna.

                         10. From perusal of the Clause 3.18 A (x) of NIT, it

          is evident that the technical bid of a bidder could be opened only

          if the sample report was favourable. In the present case, the

          samples were sent to the IIT, Patna for testing. Altogether, 8

          participants’ sample were sent for testing, out of which, for 5

          participants, adverse remark was made in respect to the sample

          submitted including the petitioner, and only 3 were declared

          successful.

                         11. The authorities have acted on the basis of the

          report submitted by the IIT, Patna. The petitioner was

          disqualified in the same, and thus, the technical bid of the

          petitioner was not opened. Consequently, the petitioner was

          disqualified in the tender process. The power of Judicial Review

          in matters relating to works-contract are very limited and unless

          some arbitrariness or illegality is shown on the face of record,

          the courts cannot interfere in works-contract/tender matters.

          Thus, we do not think it would be appropriate to interfere in the

          said report submitted by the expert body, i.e., IIT, Patna.

                         12. The Hon’ble Supreme Court has time and again

          reiterated the limited power of Judicial Review available under

          Article 226 to the High Courts in works-contract matter, and the
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          courts should be very cautious while interfering in the same. In

          Jagdish Mandal v. State of Orissa reported in (2007) 14 SCC

          517, the Hon’ble court held as under:

                                           “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 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
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                           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.”


                         13. In Afcons Infrastructure Ltd. v. Nagpur

          Metro Rail Corpn. Ltd. reported in (2016) 16 SCC 818 the

          Hon’ble Supreme Court held that the employer is best person to

          understand and appreciate the requirements of a tender.

          Ordinarily the court should defer to this view unless some

          perversity is shown in the understanding/appreciation. The

          courts are expected to exercise restraint in this regards. The

          relevant paragraphs of the Judgment are reproduced as under:

                                           “12. In Dwarkadas Marfatia and
                           Sons v. Port of Bombay it was held that the
                           constitutional courts are concerned with the
                           decision-making process. Tata Cellular v. Union
                           of India went a step further and held that a
                           decision if challenged (the decision having been
                           arrived at through a valid process), the
                           constitutional courts can interfere if the decision
                           is perverse. However, the constitutional courts
                           are expected to exercise restraint in interfering
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                           with the administrative decision and ought not to
                           substitute its view for that of the administrative
                           authority. This was confirmed in Jagdish Mandal
                           v. State of Orissa             as mentioned in Central
                           Coalfields.
                                           …
                                           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.”


                         14. Further, while deciding technical issues court

          should be even more reluctant to interfere, and the discretionary

          power should be exercised with a great deal of caution. The

          Hon’ble Supreme Court in Silppi Constructions Contractors

          v. Union of India reported in (2020) 16 SCC 489, held as
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          under:

                                           “19. This Court being the guardian
                           of fundamental rights is duty-bound to interfere
                           when there is arbitrariness, irrationality, mala
                           fides and bias. However, this Court in all the
                           aforesaid decisions has cautioned time and
                           again that courts should exercise a lot of
                           restraint while exercising their powers of
                           judicial review in contractual or commercial
                           matters. This Court is normally loathe to
                           interfere in contractual matters unless a clear-
                           cut case of arbitrariness or mala fides or bias or
                           irrationality is made out. One must remember
                           that today many public sector undertakings
                           compete with the private industry. The contracts
                           entered into between private parties are not
                           subject to scrutiny under writ jurisdiction. No
                           doubt, the bodies which are State within the
                           meaning of Article 12 of the Constitution are
                           bound to act fairly and are amenable to the writ
                           jurisdiction      of    superior   courts   but   this
                           discretionary power must be exercised with a
                           great deal of restraint and caution. The courts
                           must realise their limitations and the havoc
                           which needless interference in commercial
                           matters can cause. In contracts involving
                           technical issues the courts should be even more
                           reluctant because most of us in Judges' robes do
                           not have the necessary expertise to adjudicate
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                                    upon technical issues beyond our domain. As
                                    laid down in the judgments cited above the
                                    courts should not use a magnifying glass while
                                    scanning the tenders and make every small
                                    mistake appear like a big blunder. In fact, the
                                    courts must give “fair play in the joints” to the
                                    government and public sector undertakings in
                                    matters of contract. Courts must also not
                                    interfere where such interference will cause
                                    unnecessary loss to the public exchequer.”
                                  15. Considering the materials on record, and in

                   light of the discussions made above, the limited issue framed for

                   consideration is answered in negative. As such, at this belated

                   stage of the impugned tender process, we are not inclined to

                   interfere with the same.

                                  16. Accordingly, the present writ application stands

                   dismissed.

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

                   disposed of.




                                                     (Sudhir Singh, J)



U.K./-                                            (Rajesh Kumar Verma, J)
U


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