SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2026 Supreme(Gau) 511

IN THE HIGH COURT OF GAUHATI (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)
Devashis Baruah, J.
SPS Construction India Pvt. Ltd. – Petitioner 
Versus
Union Of India Through Ministry Of Railways, New Delhi And Ors– Respondents 
WP(C) 6625 of 2025, WP(C) 5051 of 2025
Decided On : 18-02-2026

Advocates:
Advocate Appeared:
For the Petitioner:Mr. K. N. Choudhury, Sr. Advocate, Mr. A. Mittal, Advocate, Mr. V. Pahuja, Advocate, Mr. T. Kashyap, Advocate
For the Respondent:Mr. D. Das, Sr. Advocate, Mr. K. Gogoi, CGC, Ms. M. Khanna, Advocate, Mr. R. Sarma, Advocate

Tendering authorities have discretion in setting eligibility criteria, which must be clear and cannot be deemed vague or arbitrary unless proven otherwise, emphasizing principles of fairness and natural justice in procurement processes.

Headnote:(A) Tendering Procedure - Clause 2.2.2.4.iii.ii.2 of the RFP - Disqualification of bidders based on history of collapse of superstructures - Judicial review principles in tender evaluation - Bidders must understand terms to maintain eligibility. (Paras 1, 5, 42, 63)

(B) Malice in Law - Rejection of the petitioner's technical bid for not submitting financial statement for the 2024-25 year and history of collapse - No evidence of arbitrary or prejudiced decision-making by authorities. (Paras 61, 90)

(C) Article 14 guarantees fairness in public contract bidding - Clause requiring bidders to have no history of structural collapse over a specified period was not vague. (Paras 25, 62) Facts of the Case: The Petitioner contested the rejection of technical bids due to Clause 2.2.2.4.iii.ii.2 of the RFP related to prior collapses and the lack of a financial statement for 2024-25. The Petitioner argued this clause was vague and prejudicial.

Findings of Court:
The Court upheld the authority's right to set tender conditions and deemed the rejection based on non-compliance with requirements justifiable.

Issues: Whether the clause was arbitrary, lacked clarity, or resulted in unfair advantages. Whether rejection was based on malice or proper evaluation.

Ratio Decidendi: The Court reinforced the principle that the Tendering Authority's decisions must not be disturbed unless shown to be unreasonable or biased; the clause was clear and not arbitrary.

Result: Writ petitions dismissed.

Table of Content
1. introduction of the writ petitions and background facts. (Para 2 , 3 , 4 , 5)
2. regulatory conditions and submissions of the petitioner. (Para 6 , 7 , 8 , 9 , 10)
3. submission procedures and timeline for bids. (Para 11 , 12 , 13)
4. decision-making and actions taken during the petition process. (Para 14 , 15 , 16)
5. the court's observations regarding procedural compliance. (Para 18 , 19)
6. arguments regarding the validity of rfp clause. (Para 24 , 25 , 26 , 27 , 28)
7. responses to arguments on the terms of rfp clause. (Para 29 , 30 , 31 , 32 , 33 , 34)
8. judicial interpretation regarding vagueness in the law. (Para 56 , 57)
9. final determination and outcome of the petitions. (Para 71 , 72 , 73)
10. court's concluding remarks and dismissal of petitions. (Para 90 , 91 , 92)

JUDGMENT :

Devashis Baruah, J.

Heard Mr. K. N. Choudhury, the learned Senior counsel assisted by Mr. A. Mittal and Mr. V. Pahuja, the learned counsels appearing on behalf of the Petitioner in both the writ petition. I have also heard Mr. K. Gogoi, the learned CGC who appears on behalf of the Respondent Authorities in both the writ petitions. Mr. D. Das, the learned Senior counsel assisted by Ms. M. Khanna and Mr. R. Sarma, the learned counsels appearing on behalf of the Respondent No.3 in WP(C) No.6625/2025.

PREFACE :

2. Both the writ petitions are inter related. In WP(C) No.5051/2025, the Petitioner have assailed Clause 2.2.2.4.iii.ii.2 contained in the Request For Proposal (for short ‘RFP’) issued by the Respondent Authorities and in the alternative have sought for declaration that Clause 2.2.2.4.iii.ii.2 in the RFP did not disqualify such bidders who may have experienced history of any collapse in respect of any of the projects in the last 3 years on account of force majeure conditions and/or for not determined and adjudicated fault of theirs. Declaration was also sought for that the Petitioner is not disqualified under the terms of the Clause 2.2.2.4.iii.ii.2 in the RFP on account of the Sultanganj incident. The Petitioner has also sought for a writ in the nature of Mandamus to quash the rejection by the Respondents, the bid of the Petitioner in respect of the RFP dated 19.05.2025, if done during the pendency of the writ petition on the basis of the impugned Clause 2.2.2.4.iii.ii.2 as well as also to quash any action(s) or steps undertaken by the Respondents during the pendency of the writ petition to further the tendering process arising out of the RFP dated 19.05.2025 without considering the bid of the Petitioner and restore status quo ante.

3. The Petitioner in the interim also sought for certain directions i.e. stay the effect, implementation and operation of Clause 2.2.2.4.iii.ii.2 in the RFP dated 19.05.2025 and directions be issued upon the Respondents to consider the bid submitted by the Petitioner in pursuance to the RFP dated 19.05.2025 on its own merits and not to consider the Sultanganj incident as a reason for disqualification of the petitioner from the said tender. The Petitioner also sought for interim directions that the Respondents be restrained from taking any action to further the tender process in respect of the RFP dated 19.05.2025 without considering the bid of the Petitioner.

4. It is pertinent to take note of that while the writ petition i.e. WP(C) No.5051/2025 was pending, the Petitioner learnt that its technical bid was rejected on 28.10.2025 as non-responsive in terms with Clause 2.2.2.2 and Clause 2.2.2.4.iii.ii.2 of the RFP. The Petitioner being aggrieved preferred a writ petition before this Court which was registered and numbered as WP(C) No.6274/2025. When the said writ petition was moved before this Court on 07.11.2025 with the records of WP(C) No.5051/2025, it was informed by the learned counsel for the Respondents that the Letter of Acceptance had already been issued in favour of the Respondent No.3 in WP(C) No.6625/2025 on 06.11.2025. The said writ petition being WP(C) No.6274/2025 was withdrawn and liberty wa

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top