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Patna High Court

M/s Urmila International Services Private LimitedversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The writ petition is dismissed as infructuous and the reliefs sought are not entertained.

Summary

M/s Urmila International Services Pvt Ltd filed a writ petition challenging the issuance of Tender No. BSEDC/05/23/2025-26 for staffing and payroll management of 20,000 workers, alleging violations of mandatory labour law provisions such as gratuity under the Code on Social Security, 2020 and bonus under the Code on Wages, 2019, as well as non‑compliance with prescribed service‑charge rates and technical eligibility criteria. The petitioner sought quashing of the tender and its corrigendum, a declaration of arbitrariness, and an interim stay of the tender process. The Court observed that the petition had become infructuous during the interim period and therefore dismissed the reliefs sought. Consequently, the writ petition was disposed of without addressing the substantive allegations.

Issues considered

  • Whether Tender No. BSEDC/05/23/2025-26 violates the gratuity provision under Section 53 of the Code on Social Security, 2020.
  • Whether the tender contravenes the bonus provision under Section 26 of the Code on Wages, 2019.
  • Whether the tender fails to adhere to the mandated minimum service‑charge of 3.85% as per the relevant government Sankalp and Finance Ministry circulars.
  • Whether the technical eligibility criteria were arbitrarily altered in the second corrigendum, rendering the tender process unfair and irrational.

Legislation cited

Subjects

  • tender
  • public procurement
  • labour law
  • gratuity
  • bonus
  • service charge
  • technical eligibility
  • arbitrariness
  • writ petition
  • quashing tender

Judgment

                      IN THE HIGH COURT OF JUDICATURE AT PATNA
                                Civil Writ Jurisdiction Case No.3850 of 2026
                 ======================================================
                 M/s Urmila International Services Private Limited 1st Floor, New Incubation
                 Building, Software Parks of India, P.S.- Rajeev Nagar, P.O.- Patliputra
                 Colony, Patna- 800013, Bihar, through its Authorised Representative Mr. Jay
                 Krishan Singh, Male, Aged about 50 Years, S/o Late Arjun Singh, Address-
                 Road No.-10, Rajendra Nagar, P.S.- Kadam Kuan, P.O.-Rajendra Nagar,
                 Patna- 800016, Bihar.
                                                                              ... ... Petitioner
                                                    Versus
           1.     The State of Bihar Represented through Its Principal Secretary, Department
                  of Information and Technology.
           2.    Principal Secretary, Department of Information and Technology, Secretariat,
                 Patna, Bihar- 800015.
           3.    Bihar State Development Electronics Corporation Limited, through Its
                 Managing Director, Beltron Bhawan, Shastri Nagar, Patna.
           4.     The Managing Director, M/s Bihar State Electronics Development
                  Corporation Limited, Having Its Office at Beltron Bhavan, Shastri Nagar,
                  Patna- 800023.
                                                                        ... ... Respondents
                 ======================================================
                 Appearance :
                 For the Petitioner       :      Mr. Lalit Kishore, Sr. Advocate
                                                 Mr. Deo Prakash Singh, Advocate
                                                 Ms. Nishu Kumari, Advocate
                 For the State            :      Mr. Additional Advocate General (3)
                                                 Mr. Saraj Kumar Sharma, AC to AAG-3
                 For the Beltron          :      Mr. Girijish Kumar, Advocate
                                                 Mr. Akash Anand, Advocate
                 ======================================================
                 CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
                                           and
                         HONOURABLE MR. JUSTICE ARUN KUMAR JHA
                                       ORAL ORDER

                 (Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)

3   18-04-2026                        Heard Shri Lalit Kishore, the learned senior

                   counsel for the petitioner, Shri Saraj Kumar Sharma, the learned

                   counsel for the State and Shri Girijish Kumar, the learned

                   counsel for Beltron.

                                      2. The present writ petition has been filed seeking

                   the following reliefs:
Patna High Court CWJC No.3850 of 2026(3) dt.18-04-2026
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                                 “(i) For quashing the tender no.
                          BSEDC/05/23/2025-26 published on 03.02.2026
                          through        dedicated       tender     portal
                          https://eproc2.bihar.gov.in for Selection of
                          Manpower Agency for Staffing and Payroll
                          Management, for outsourcing of 20,000 manpower
                          for being violative of the mandatory statutory
                          provisions of labour law and the minimum service
                          charge sankalp no-एम-4-06/2023 2988/वव0, Patna,
                          dated 23/03/2023 enunciated as under:

                                 (A) For deliberately ignoring and departing
                          from the mandatory gratuity provision u/s 53 of the
                          Code on Social Security, 2020 as inconsistently
                          mentioned under clause 7.3 (C) (i) under the
                          heading of Payroll Management of RFP leading to
                          gross deprivation of the 20,000 purported
                          outsourced employees from the coverage there
                          under and jeopardizing the prospective
                          participants of the unfathomable liability.

                                 (B) For deliberately ignoring and departing
                          from the mandatory provision of Bonus prescribed
                          u/s 26 of the Code On Wages, 2019.

                                 (C) For ignoring and departing from
                          sankalp no-एम-4-06/2023 2988/वव0, Patna, dated
                          23/03/2023 under clause 4 (i) which prescribes
                          minimum service charge of 3.85% of the services
                          issued in consonance with Office Memorandum no-
                          F.6/1/2023-PPD, dated 06/01/2023 by Ministry of
                          Finance, Govt. of India as mandated under clause
                          6.1.4 of RFP stating in conflict with the Sankalp of
                          Govt. Of Bihar as well as the circular of Ministry
                          of Finance, Govt. Of Bihar.

                                 (D) For ignoring and departing from the
                          inherent CVC circular no- 12-02-1-СТЕ-6, dated
                          17/12/2002 prescribing guiding minimum technical
                          eligibility criteria which has been explicitly
                          compromised for a favoured private participant,
Patna High Court CWJC No.3850 of 2026(3) dt.18-04-2026
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                                 (ii) For issuance of appropriate writ to
                          quash the second corrigendum dated 05/03/2026
                          where under and whereby the respondents
                          arbitrarily compromised the technical eligibility
                          criteria mandatory under clause 6.2.1 (6) from
                          10000 manpower experience to 3000 manpower
                          providing services on a monthly average basis,
                          apparently to suit and tailor made for a favoured
                          private party with respect to tender no-
                          BSEDC/05/23/2025-26, dated 03/02/2026 for
                          Selection of Manpower Agency for Staffing and
                          Payroll Management to the tune of 20000
                          purported manpower mentioned under clause 7.1
                          of the tender document, manifestly against the
                          principles of fairness and rationality of the State
                          authorities in tender matters.

                                 (iii) That for holding a declaration that the
                          issuance of tender notification apparently infested
                          with irregularities, infirmities, non-conformities
                          and violative of mandatory provisions of labour
                          law causing deprivation from guarantee of the
                          social security and fair wages to the huge number
                          of employees is manifestly arbitrary, unfair and
                          non-est the provisions of law.

                                 (iv) For the interim stay of the process of the
                          tender notice no -BSEDC/05/23/2025-26, dated
                          03/02/2026 with immediate effect for being
                          impregnated with several infirmities, irregularities,
                          violations and illegalities with immediate effect in
                          the absence of which this tender notice shall cause
                          severe prejudices not only to the participants but
                          the huge outsourced manpower.”

                          3. At the outset, the learned senior counsel for the

          petitioner submits that as far as the aforesaid reliefs are

          concerned, the present writ petition has been rendered

          infructuous during the interregnum period, hence the present
          Patna High Court CWJC No.3850 of 2026(3) dt.18-04-2026
                                                      4/4




                    writ petition may be disposed of.

                                    4. Accordingly, the present writ petition stands

                    disposed of.


                                                               (Mohit Kumar Shah, J)


                                                                   (Arun Kumar Jha, J)

Shahnawaz/-

U


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