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) 742

THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) 
ASHUTOSH KUMAR, CJ., ARUN DEV CHOUDHURY, J.
Sps Construction India Private Limited, Representative Mr. Madhav Singla – Appellant 
Versus
Union Of India, Through Ministry Of Railways – Respondent 
WA 79 of 2026 
Decided On : 01-04-2026

Advocates Appeared:
For the Appellants :Mr. Vivek Chib, Senior Advocate assisted by Mr. Siddhartha Sunil, Mr. Aditya Mittal, Mr. Vibhu Pahuja and Mr. A Chakraborty, Advocates.
For the Respondents:Mr. K. Gogoi, Central Government Counsel, Mr. D. Das, Senior Advocate assisted by Mr. R. Sarmah, Ms. M. Kakoty and Ms. A. Gupta, Advocates

Tender authorities have wide latitude to prescribe risk-mitigation eligibility criteria. Such terms are not subject to judicial review unless manifestly arbitrary. A bidder cannot participate in a tender process and subsequently challenge its conditions upon rejection, as the burden of disclosure remains with the participant.

Headnote:(A) Administrative Law - Tender and Public Procurement - Eligibility Criteria - Judicial Review - Courts possess limited scope for interfering with commercial or technical terms of a tender document. Such conditions are not subject to judicial assessment unless they are found to be manifestly arbitrary, discriminatory, or lacking a rational nexus to the project's objectives. (Paras 16, 17, 30, 37)

(B) Tender Process - Participation with knowledge - Doctrine of Estoppel - A bidder who chooses to participate in a tender process with complete knowledge of the eligibility requirements cannot turn around and challenge those terms upon being unsuccessful. Allowing such challenges would create uncertainty and undermine the integrity of the procurement process. (Paras 11, 12)

(C) Risk Mitigation - Structural Integrity - Eligibility clauses requiring the disclosure of past project failures are legitimate instruments for assessing the reliability and risk profile of bidders in complex infrastructure projects. Such terms do not amount to punitive blacklisting but serve as preventive screening mechanisms to protect public interest. (Paras 20, 22, 25, 26)

Facts of the case:
The appellant challenged an eligibility condition in a tender for an infrastructure project, which mandated an undertaking that no structural collapse occurred in any previous project during the preceding three years. Having submitted a bid with knowledge of this condition, the appellant challenged the clause as vague and arbitrary after their technical bid was rejected for non-responsiveness. The lower court dismissed the challenge, holding the appellant was bound by the terms they had accepted.

Findings of Court:
The court held that the look-back period and the criteria for structural failure provided in the tender were defined by technical considerations and served as a rational risk-mitigation measure. The burden lies on the bidder to disclose incidents and clarify their nature; failure to do so justifies valid rejection.

Issues: The main issues addressed were whether a participant has the standing to challenge tender terms after bidding, whether the eligibility criterion was vague or arbitrary, whether the rejection of the bid constituted automatic blacklisting, and the legality of the technical bid rejection.

Ratio Decidendi: Tender authorities enjoy wide latitude in setting eligibility criteria for high-stakes projects. When a clause is based on objective technical parameters to ensure safety and is not manifestly irrational, the court will not substitute its judgment. Prior knowledge of tender terms bars a participant from challenging them post-submission.

Result: Appeal dismissed.

Table of Content
1. disputed tender terms and procedural history. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7)
2. locus standi regarding post-tender challenges. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15)
3. validity of risk-mitigation technical criteria in rfps. (Para 16 , 17 , 18 , 19 , 20 , 21)
4. distinction between eligibility criteria and blacklisting. (Para 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35)
5. judicial restraint in reviewing tender parameters and policy. (Para 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45)

JUDGMENT :

Ashutosh Kumar, CJ.

We have heard the learned counsel for the parties.

2. The appellant/SPS Construction India Private Limited has challenged the judgment dated 18.02.2026 passed by a learned Single Judge of this Court in WP(C) No.5051/2025 and WP(C) No.6625/2025, whereby the afore-noted two writ petitions have been dismissed, upholding the validity of the eligibility condition for the revised Request For Proposal (in short “RFP”) dated 23.07.2025 and the rejection of the appellant’s technical bid as non-responsive.

3. The respondent Nos.1 and 2 had issued an RFP dated 19.05.2025 for execution of major infrastructure project on Engineering, Procurement and Construction (EPC) Mode, namely, construction of second rail-cum-road bridge over river Brahmaputra along with associated works.

4. The original RFP contained an eligibility condition in Clause 2.2.2.4.iii.ii.2 of Section 2 thereof that there should not be a history of collapse of superstructure/substructure of any span of a bridge/flyover/via-duct/metro-line work during construction/service in last 5(five) years, ending last day of month previous to the one in which tender is invited and that an undertaking in that regard shall be submitted along with the bid.

5. Upon representation by the prospective bidders including the appellant, the respondents issued a revised RFP dated 23.07.2025, clarifying that only collapses attributable to design failure or quality failure would be relevant; and the look-back period would be reduced from 5(five) years to 3(three) years.

6. The appellant submitted its bid pursuant to the revised RFP but with the “without prejudice” clause and contemporaneously filed WP(C) No.5051/2025, [WP(C) No.5051/2025 was filed on 26.08.2025 as claimed by the appellant i.e. a day before the submission of the bid but according to the respondents the afore-noted was filed after the submission of the bid] challenging the validity of the clause or in the alternative, a declaration from the Court that such clause would not operate against the bidders having suffered a collapse in respect of any of their projects in the last 3(three) years on account of force majeure and/or in absence of any determined or adjudicated fault of the bidder.

7. While the afore-noted writ petition was pending, the technical bid of the appellant was rejected on 28.10.2025 as non-responsive in terms of the afore-noted clause. Another writ petition vide WP(C) No.6274/2025 thus was filed, challenging the said rejection. However, on submission that the Letter of Acceptance (LOA) had already been issued to respondent No.3/Larsen and Toubro Limited (L&T), the afore-noted writ petition [WP(C) No.6274/2025] was withdrawn by the appellant with the liberty to challenge the same. Thereafter, the appellant had preferred WP(C) No.6625/2025 challenging the grant of LOA to respondent No.3.

8. Before the learned Single Judge, it was argued on behalf of the appellant that the clause in question was void as it was vague, uncertain and ambiguous and, therefore, it did not provide a “level playing field” on account of inherent uncertainties in the application of such clause. In a project undertaken by the appellant in the State of Bihar within 3(three) years of the present RFP, there had been a collapse of few spans of the bridge under construction but without any fatalities and the cause of such collapse has till date not been ascertained.

It was thus contended by the appellant t

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