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2025 Supreme(Gau) 2119

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
DEVASHIS BARUAH, J.
Ms Universal Transport Agency – Petitioner  
Versus
The State of Assam, Represented by the Additional Chief Secretary, Ministry of Food - Respondent
WP(C) 7327 of 2025
Decided On : 19-12-2025

Advocates Appeared:
For the Petitioner:Mr. M. Nath, Sr. Advocate, Mr. D. J. Kapil, Advocate
For the Respondents:Mr. K. Gogoi, Addl. Sr. Govt. Advocate, Mr. J. Chutia, SC, KAA

Court held the rejection of the technical bid improper but denied relief due to petitioner's delay in seeking intervention and its acknowledgment of financial unviability.

Headnote:(A) NFSA, 2013 - Technical bid rejection - The petitioner challenged the rejection of its technical bid for handling and transportation of food grains based on prior mid-term resignation - Notably, the petitioner was satisfied with contract extensions till December 2025 - Rejection cited financial non-viability based on rates lower than previously agreed. (Paras 2-15)

(B) Judicial Intervention - Jurisdiction under Article 226 of the Constitution - The Court held that since the petitioner delayed filing and was aware of the rejection, it disentitled itself from equitable relief despite improper rejection. (Paras 14)

Facts of the case:
The petitioner was awarded a contract for transportation of rice and contested its technical bid rejection based on a mid-term resignation, though still operating under an extension for the contract period.

Findings of Court:
The Court recognized improper grounds for technical bid rejection but refrained from interfering in the tender process, upholding the awarding of contracts to lower bidders.

Issues: The Court examined the propriety of the technical bid rejection and the implications of the petitioner’s financial viability claims.

Ratio Decidendi: The Court underscored that the petitioner knowingly delayed judicial recourse, failing to act promptly regarding bid rejection, which impacted eligibility for relief.

Result: Petition dismissed.

Table of Content
1. petitioner's complaint regarding bid rejection. (Para 2 , 3 , 4)
2. grounds for rejection and extension of contract. (Para 5 , 6 , 7)
3. arguments against the petitioner's standing. (Para 8 , 14)
4. court's reasoning regarding contract viability. (Para 9 , 10 , 11 , 12 , 13)
5. dismissal of the petition with observations. (Para 15)

JUDGMENT :

DEVASHIS BARUAH, J.

Heard Mr. M. Nath, the learned Senior Counsel assisted by Mr. D. J. Kapil, the learned counsel appearing on behalf of the petitioner. Mr. K. Gogoi, the learned Additional Senior Government Advocate appears on behalf of the respondent Nos.1 & 2 and Mr. J. Chutia, the learned Standing Counsel of the Karbi Anglong Autonomous Council (KAAC) appears on behalf of the respondent Nos.4 to 5.

2. The petitioner herein is aggrieved by the rejection of its technical bid in the Minutes of the Meeting held on 25.08.2025 as well as the granting of the contract to the private respondents.

3. The brief facts of the instant case are that the petitioner was awarded a contract for transportation of rice under NFSA, 2013 within the Karbi Anglong Autonomous Council area for the financial year 2019-2020 for Tier 1 and Tier 2. The petitioner continued to render its services against the said contract at the rates which were fixed. The Respondent Authorities being satisfied granted extension to the petitioner from time to time. It is the further case of the petitioner that in the year 2025, it became unfeasible and unviable for the petitioner to continue the contract of handling and transportation work of NFSA food grains in view of the rates, and as such, submitted a representation to the Principal Secretary, Karbi Anglong Autonomous Council stating that the petitioner would not like the contract extended beyond 31.03.2024 (the learned Senior Counsel for the petitioner submitted that it should have been 31.03.2025). Be that as it may, the Respondent Authorities extended the said contract and from the materials on record, and more particularly, the communication dated 15.10.2025 issued by the Secretary, FPD & CA, Karbi Anglong Autonomous Council, it is seen that the petitioner’s contract was extended upto December, 2025.

4. In the backdrop of the above, it is now relevant to take note of that a notice inviting E-tender was issued on 01.07.2025 for carrying/loading/unloading of allotted Food-grains, i.e. Rice under NFSA-2013 in 2(Two) Tier System: Tier-I (from FCI Godown to LAMPS/WCCS Godown) and Tier-II (from LAMPS/WCCS Godown to FPS Dealer/Agent/) for Transportation and delivery up-to F.P Shop Level. The Notice Inviting Tender was for the period from 2025 to 2026. The said Notice Inviting Tender contained various Clauses. Relevant to take note of Clause 4 of the Terms and Conditions of the Bid as the same has relevance for the purpose of disposal of the instant writ petition. The said Clause 4 relates to disqualification conditions for tender and the same is reproduced herein under:-

“4. Disqualification Conditions for tender :-

(I) Bidders who are blacklisted or debarred by any Central/State Govt. or Govt. Agency are not eligible to file the tender.

(II) If the proprietor/any of the partners of the firm/any of the Director of the company have been, at any time, convicted by a court of any offence and sentenced to imprisonment for a period of 3 years or more, such bidder will not be eligible.

(III) Any bidders whose contract with the Food Corporation of India or any department Public Sector Undertaking, has been terminated before the expiry of the contract period, at any point of time during last five years will not be eligible.

(IV) Information in litigation history in which the bidder is involved.”

5. The petitioner being interested in the said contract participated along with various other bidders. To the surprise, the petitioner came to learn that the petitioner's technical bid was rejected solely on the ground that petitioner had submitted a mid-term resignation for carrying contractor

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