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

2026 Supreme(Mad) 1364

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M. DHANDAPANI, J.
M/s. P & C Projects Pvt. Ltd. – Appellant
Versus
Union of India, Rep. by its Secretary, New Delhi – Respondent
W.P. Nos. 9067, 10127 of 2026, W.M.P. Nos. 9788, 10937, 10938 of 2026
Decided On : 16-04-2026

Advocates Appeared:
For the Appellants : V. Raghavachari, A. Mohd. Ismail
For the Respondents: A.R.L. Sundaresan, P.G. Santhosh Kumar, Tushar Sannu

Judicial review of tender processes adheres to principles of reasonableness, emphasizing the authority's discretion in evaluating bids and prioritizing public interest over individual complaints.

Headnote:(A) Constitution of India - Article 226 - Writ petitions challenging rejection of tender by government authority on grounds of being abnormally low - Petitioner ranked L-1 but rejected due to bid being 23.45% below estimated cost - Tender Evaluation Committee deemed bid to compromise quality - Court emphasized restraint in judicial review of tender processes and affirmed the authority's discretion. (Paras 1, 22, 40, 41)

(B) Tender Processes - Fairness and Reasonableness - Judicial review is limited to preventing arbitrariness and ensuring public interest is served - The authority of the tender evaluator is recognized as the best judge of requirements, with a focus on public interest over individual grievances. (Paras 31, 47)

Facts of the case:
The petitioner, a construction firm, was disqualified from the tender process despite being the lowest bidder, on the premise that their bid was unviable. The dismissal of W.P. No.9067 upheld this rejection, allowing for a new tender process while permitting participation in it.

Findings of Court:
The rejection was deemed valid under the General Financial Rules, with no malice or arbitrariness exhibited by the authorities.

Issues: Whether the rejection of the bid constituted malice or arbitrariness and whether public interest was at stake.

Ratio Decidendi: The court ruled that as long as the tender authority acts reasonably and in compliance with established rules, such decisions are not subject to judicial interference.

Result: W.P. No.9067 dismissed; W.P. No.10127 closed.

Table of Content
1. petitions filed under article 226 regarding tender rejection (Para 1 , 2)
2. details of tender process and petitioner’s compliance (Para 3 , 4 , 5 , 6)
3. petitioner’s bid rejected for being abnormally low (Para 7 , 8)
4. arguments on the rejection of bid and public interest (Para 10 , 11 , 12)
5. respondents justify rejection based on financial rules (Para 21 , 22 , 23 , 24 , 25 , 26)
6. limits of judicial review in tender matters (Para 36 , 40 , 41 , 47)
7. writ petition dismissed; fresh tender process to continue (Para 48)

ORDER :

1. Through the writ petition in W.P. No.9067/2026, while the petitioner has assailed the order cancelling the total tender process, inspite of the petitioner being the lowest tendered and declared as L-1, W.P. No.10127/2026 has been filed against the fresh tender floated by the 2nd respondent for the very same project, that too pending the writ petition in W.P. No.9067/2026.

2. Since W.P. No.10127/2026 has been filed pending the writ petition in W.P. No.9067/2026, this Court had permitted the petitioner to participate in the fresh tender, through order dated 17.03.2026 and had further made it clear that the fresh tender process would be subject to the result of the petitions pending before this Court. In the light of the order passed by this Court, the present writ petitions have been listed before this Court and have been taken up for final disposal.

3. It is the case of the petitioner that the 3rd respondent intending to develop the Special Economic Zone premises, appointed the 2nd respondent to provide consultation and monitoring services to the 3rd respondent and based on the said understanding between the 2nd and 3rd respondent, the 2nd respondent issued notification dated 29.09.2025 inviting tender for the work of “Revamping of Trunk Infrastructure facilities at MEPZ Special Economic Zone, Tambaram, Chennai” with an estimated value fixed at Rs.457,62,58,412/- excluding GST. It is the further averment of the petitioner that the tender process consists of a two tier system of technical bid and financial bid. Though initially the last date for submission of the bid was fixed on 21.10.2025, there after it was extended upto 31.10.2025. The technical bids, though were to be opened on 3.11.2025, however, committee for evaluating the technical bid was formed by respondents 2 and 3 and on 18.11.2025, the technical bids were opened, as evidenced from the tender portal.

4. It is the further averment of the petitioner that based on the tender notification, the petitioner, having fulfilled the necessary criteria prescribed, submitted its bid and upon technical evaluation, the petitioner was found to be qualified in the technical bid along with 4 other bidders from out of the total number of 7 bidders. The financial bid submitted by the bidders were opened on 18.12.2025 in which the petitioner had quoted a value of Rs.350,30,82,129/- and as such the petitioner was ranked L-1.

5. It is the further averment of the petitioner that though the financial bid was opened on 18.12.2025, the same was not uploaded in the portal and the 2nd respondent. The 2nd respondent, over the mail, declared the per bidder stating that the bid value quoted is 23.45% below the estimate cost of tender, which was fixed at Rs.457,62,58,412/-.

6. It is the further averment of the petitioner that after opening of the financial bids, the 2nd respondent had sought clarification for proceeding with the evaluation vide its email on 4.1.2026 seeking detailed item-wise breakup corresponding to the lowest quoted rates for each individual component of work and in compliance of the said request, the petitioner had also furnished the breakup through email on 9.1.2026.

7. It is the further averment of the petitioner that pursuant to the detailed cost breakup sought for by the 2nd respondent, the petitioner detailed analysis for all major and high-value items, which substantially governed the financial viability of the project clearly indicat

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