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2025 Supreme(Cal) 397

IN THE HIGH COURT AT CALCUTTA
AJAY KUMAR GUPTA, J.
United Order and Supply Co-Operative Society Ltd. – Appellant
Versus 
The State of West Bengal and Others – Respondent
WPA 18675 of 2019 With CAN 1/2020 & CAN 2/2025
Decided On : 27-08-2025

Advocates Appeared:
For the Appellants : Mr. Satrajit Sinha Roy, Adv.
For the Respondents: Mr. Sagar Bandyopadhyay, Ld. Sr. Adv. Ms. Soma Kar Ghosh, Adv. Ms. Suparna Paul, Adv. Mr. Arabinda Pathak, Adv., Ms. Shilpi Ghosh, Adv., Mr. Saikat Chatterjee, Adv. Ms. Amrita Panja Mallick, Adv.

Judicial intervention in tender processes is limited; courts should exercise restraint unless there is clear evidence of arbitrariness or mala fides.

Headnote:(A) Co-operative Societies Act, 1983 - Writ jurisdiction - Tender process for supply of cooked diet - Petitioner, a registered society, challenged the rejection of its technical bid for failing to meet tender criteria while others with deficiencies were accepted - The court ruled that tender process was completed and work order issued; thus, the writ was infructuous (Paras 1, 5, 13).

(B) Judicial review in government contracts - The court emphasized the need for restraint in examining tender evaluations, only intervening in cases of clear arbitrariness or mala fide intentions (Paras 16, 24).

(C) The validity of work orders issued beyond specified tender timelines was contested but upheld as within authority discretion (Para 8).

Facts of the case:
The petitioner claimed discriminatory rejection of its bid while others with deficiencies were accepted. The tender process was conducted for supplying cooked diets at a medical college, with competition among multiple bidders.

Findings of Court:
The technical evaluation process of bids was deemed acceptable, leading to the issuance of a work order to another bidder.

Issues: The primary question was the legitimacy of bid rejections and the adherence to tender conditions.

Ratio Decidendi: The court reiterated its limited role in commercial tender matters, asserting that decisions based on factual evaluations lie with the tendering authority.

Result: Writ petition dismissed.

Table of Content
1. petitioner's right to challenge tender process. (Para 1 , 2 , 3 , 4 , 5)
2. arguments on the procedural unfairness in bid rejection. (Para 6 , 7 , 8 , 9 , 10)
3. state's defense on bid evaluation and process compliance. (Para 11 , 12 , 13 , 14 , 15 , 16)
4. court's rationale on the final selection and bid comparison. (Para 17 , 18 , 19 , 20 , 21)
5. judicial restraint in government contract reviews. (Para 22 , 23 , 24 , 25 , 26 , 27)
6. conclusion of dismissal of writ petition. (Para 28 , 29 , 30 , 31 , 32)

Judgment :

Ajay Kumar Gupta, J.

1. The writ petitioner approached this Court praying for direction upon the respondent authorities to admit the technical bid of the Petitioner and to reject the technical bids of respondent nos. 15 to 17 in connection with the tender process initiated in NIT No. 3542 dated 27.05.2019 for supply of cooked diet for indoor patients at Bankura Sammilani Medical College & Hospital, Bankura along with other consequential reliefs.

2. The sum and substance of this case is that the petitioner is a society duly registered under the Co- operative Societies Act, 1983 and engaged, inter alia, in the business of supplying cooked diet to various Government Hospitals across different districts of the State of West Bengal.

3. Pursuant to NIT No. 3542 dated 27.05.2019, issued by respondent no. 7 invited E-Tender for supply of cooked diet to the indoor patients of Bankura Sammilani Medical College & Hospital. The petitioner participated in the said tender process by submitting all requisite documents.

4. The technical bid of the petitioner was opened and duly admitted on 19.06.2019. A comparative statement of technical bid was uploaded on the tender web portal bearing the signatures of concerned respondents, wherein it was reflected that all the documents has been submitted by the petitioner, was “Not Approved By The Swasthya Bhavan” without any reason being assigned.

5. According to the petitioner, upon scrutiny of the documents furnished by the other participants/bidders, it transpired that several deficiencies were present in their bids. Nevertheless, the respondent authorities, in an arbitrary, discriminatory and collusive manner, approved such bids, while rejecting that of petitioner. It is alleged that respondent nos. 16 and 17 did not ever posses the requisite credentials to qualify, yet their bids were entertained, whereas the petitioner’s bid was rejected dehors the terms of tender. In view of clause 18.3 of the tender conditions, the bids of respondent no. 16 to 18 were liable to be rejected.

6. Learned counsel appearing on behalf of the petitioner contended that the petitioner’s technical bid was effected without due consideratation of the documents and credentials furnished by the petitioner, which were, in fact, better to those of private respondents.

7. It was further submitted that respondent no. 18 has failed to submit the tender application form, the bidders undertaking, the bank solvency certificate and the performance certificate duly authenticated by the Notary Public as mandatory requirement under tender conditions. Despite such deficiency in the documents submitted in the tender, his bid was accepted, which vitiates the entire process. Hence, the bids of the respondent nos. 16 to 18 are liable to be rejected and fresh tender should be issued.

8. Learned counsel submitted the work order issued in favour of the respondent no. 17 beyond the expiry of the maximum period of 120 days as prescribed under E-Tender is illegal. The respondent authority did not comply with the clause 6 of the tender dated 27.05.2019. Therefore, the respondent authority acted arbitrarily and whimsically and rejected the technical bid of the petitioner.

9. Learned counsel finally argued that when the respondent authority violates its own tender process with mala fide intention, arbitrarily or for collateral purpose, in such case, the Court is not powerless to cancel the tender process and directed for issuance of f

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