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2025 Supreme(Pat) 1301

IN THE HIGH COURT OF JUDICATURE AT PATNA
P. B. BAJANTHRI, CJ., ALOK KUMAR SINHA, J.
M/s Frontline (NCR) Business Solutions Pvt. Ltd., through its Authorised representative Anand Ashesh, S/o. Surendra Singh – Petitioner
Versus
Lalit Narayan Mithila, University, through its Registrar and Ors. – Respondents
Civil Writ Jurisdiction Case No.14030 of 2025
Decided On : 24-09-2025

Advocates Appeared:
For the Petitioner: Mr. Umesh Prasad Singh, Sr. Adv., Mr. Vaibhava Veer Shanker, Adv., Mr. Kumar Gaurav, Adv.
For the Respondents: Mr. Bindhyachal Rai, Adv., Mr. Md. Nadim Seraj, Adv., Mr. Shaileshh Kumar, Adv., Mr. Siddhartha Prasad, Adv., Mr. Om Prakash Kumar, Adv.

A bid not meeting the lowest statutory requirements due to material non-compliance does not invalidate the tender if the overall statutory obligations are met, allowing a degree of flexibility in compliance interpretation.

Headnote:

Constitution of India – Article 226 – Government Contract – Tender – Writ jurisdiction under Article 226 is primarily preventive and not curative in matters relating to tenders – Where tender process has already reached its logical conclusion and contractual rights have crystallised, courts have consistently exercised restraint in entertaining belated challenges – Once tender process has culminated into a concluded contract, ordinarily no writ would lie to annul the same, except in cases where action of State or its instrumentalities is shown to be vitiated by mala fides, arbitrariness, or violation of statutory/constitutional provisions – Mere dissatisfaction of an unsuccessful bidder is no ground to disturb a concluded contract – Petitioner has not demonstrated any mala fide, arbitrariness, or violation of statutory norms in tender process – Challenge appears to be an afterthought, lacking any substantive legal foundation – Challenge is belated, seeks to unsettle a concluded contract and does not warrant interference – There is no evidence whatsoever to suggest that University acted dishonestly, whimsically, or in a manner that favoured any particular bidder – Tendering Authority, being best Judge of its requirements, is entitled to construe and apply its own conditions – In absence of any demonstrable perversity or illegality, Court would not sit in appeal over such administrative decisions – Writ Application dismissed. (Paras 11, 12 and 13)

Payment of Bonus Act, 1965 – Section 10 – Entitlement to get bonus – Employees drawing wages beyond notified ceiling are outside purview of the Act and are not statutorily entitled to bonus. (Para 11)

Table of Content
1. writ for mandamus to disclose tender documents. (Para 2 , 3)
2. allegations of non-compliance with tender conditions. (Para 4 , 5)
3. claims of bias and unresponsive tender committee. (Para 6 , 7)
4. arguments supporting compliance with tender norms. (Para 9 , 10)
5. judicial review limitations in tender matters. (Para 11 , 12)
6. final conclusion to dismiss the writ petition. (Para 13)

JUDGMENT :

ALOK KUMAR SINHA, J.

Heard the parties

2. The petitioner in the present writ application has prayed for following reliefs:

“(i) To issue a rule NISI in the nature of writ of mandamus commanding the respondents to disclose all the relevant documents including the bid documents submitted by respondent no. 4 being one of the bidder who has been declared successful bidder after opening of the price bid as ‘L1’ in violation of the terms and conditions of the tender documents/ Notice Inviting Tender (NIT).

(ii) To issue a rule NISI in the nature of writ of mandamus directing the respondents to disclose the decision of the tender committee declaring the respondent no. 4 after opening of the financial bid as ‘L1’

(iii) To issue a rule NISI in the nature of writ of certiorari to quash and cancel the decision of the tender committee dated 06.08.2025 by which the respondent no. 4 has been declared as ‘L1’

(iv) To issue a writ of mandamus directing the respondents to consider the matter afresh and be further pleased to direct that the work should be awarded to the bidder who has submitted the bid complying all the provisions of NIT.”

3. Learned counsel for the petitioner submits that the petitioner is a company incorporated under the provisions of the Companies Act and has approached this Hon’ble Court under Article 226 of the Constitution, being aggrieved by the decision of the Tender Evaluation Committee dated 06.08.2025, whereby respondent no. 4 has been declared as the successful bidder (L1) in complete violation of the mandatory terms and conditions of the Notice Inviting Tender (NIT). It is contended that the tender in question was issued by respondent no. 2 and respondent no. 3 vide advertisement no. EST/01/25 for “Hiring of agency for providing Security and Housekeeping service for the L.N. Mithila University, Darbhanga.” The learned counsel points out that the said tender invited as per section III Special Conditions of Contract, the intending bidders were required to comply besides other terms and conditions of the NIT, one of the terms & conditions which forms part of Section no. III of the Special Conditions of Contract (Relevant clauses of NIT- Annexure-P/1 AND Format of the Financial Bid- Annexure-P/2), the relevant clause (iii) reads thus:-

“The applying firm will quotes the ESL, EPF, Bonus, Uniform, Uniform washing and HRA rate in the column Daily Wages Rate on the current rate as per the Govt. Norms as quoted in the Part A of the Financial Bid (Statutory wages and deduction should be as per norms). Bidders not quoting rates in accordance with the prescribed format will be outrightly rejected.”

[Emphasis Supplied]

4. The petitioner’s counsel submits that three bidders, including the petitioner and respondent no. 4, were found technically qualified and, accordingly, their financial bids were opened on 06.08.2025. However, despite the categorical stipulation in the tender conditions, respondent no. 4 quoted less than the minimum rate prescribed for EPF and, more significantly, quoted “NIL” in the Bonus column. The petitioner, on the other hand, quoted Bonus @ 8.33% and EPF @ 13% in strict compliance with the prescribed format. It is further contended that, had respondent no. 4 quoted the statutory minimums as mandated, it would have stood relegated to the position of ‘L3’ and could not have been declared successful.

5. Learned counsel for the petitioner therefore submitted that the quotation of ‘NIL’ in respect of statutory dues such as EPF and Bonus cannot be regarded as a clerical error but amounts to a material non-compliance o

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