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2026 Supreme(P&H) 357

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
DEEPAK SIBAL, LAPITA BANERJI, JJ.
Siemens Healthcare Private Limited – Petitioners
Versus
Punjab Health Systems Corporation and another – Respondents
CWP NO.7983 OF 2026 (O&M) 
Decided On : 12-05-2026

Advocates appeared:
For the petitioner:Mr. Sarjit Bhadu, Senior Advocate with Mr. Akshay Mittal, Advocate, Mr. Aseem Chaturvedi, Advocate, Mr. Vipul Joshi, Advocate, Mr. Sagar Goswami, Advocate, Mr. Piyush Kumar, Advocate and Ms. Sanya Thakur, Advocate
For the Respondents:Mr. Ankit Choudhari, Advocate, Mr. Akshay Bhan, Senior Advocate and Mr. Rahul Sharma, Senior Advocate with Mr. A. S. Talwar, Advocate,

Judicial review of tender processes is limited to the decision-making process. Courts will not interfere with commercial decisions unless they are arbitrary, irrational, or mala fide. Participation in pre-bid meetings and acceptance of tender conditions estops a bidder from challenging those terms subsequently.

Headnote:(A) Constitution of India - Article 226 - Arbitration and Conciliation Act, 1996 - Section 9 - Tender process - Judicial review - Scope of interference - Courts do not sit in appeal over administrative decisions - Interference is warranted only if the decision-making process is vitiated by arbitrariness, irrationality, or mala fides - Public interest is a primary consideration - A bidder who participates in a pre-bid meeting and accepts clarified terms cannot subsequently challenge those specifications as being at variance with the original notice. (Paras 19, 20, 22, 23)

(B) Commercial transactions - Award of contract - Judicial restraint - Courts must be circumspect in interfering with commercial decisions, especially when the process is bona fide and serves public interest - Unsuccessful bidders cannot invoke judicial review to protect private interests or settle business rivalries. (Paras 21, 23)

Facts of the case:
A tender was issued for the supply and installation of medical diagnostic equipment. A pre-bid meeting was conducted to clarify technical specifications, which were subsequently amended. The petitioner participated in the process and accepted the modifications. Following the opening of technical and financial bids, the contract was awarded to the lowest bidder. The petitioner challenged the technical responsiveness of the successful bidder and the evaluation process, alleging deviations from the initial tender conditions.

Findings of Court:
The court observed that the petitioner, having accepted the clarifications during the pre-bid stage, was estopped from challenging the specifications later. The evaluation process was found to be transparent and in accordance with the tender conditions. No evidence of bias, mala fides, or arbitrariness was established.

Issues: Whether the technical evaluation of the tender was arbitrary or contrary to the prescribed conditions, and whether the court should exercise its power of judicial review to set aside the contract award.

Ratio Decidendi: The court held that judicial review in tender matters is limited to examining the decision-making process. Since the authority acted within its discretion, the process was fair, and the decision was based on commercial considerations in the public interest, there was no ground for judicial interference.

Result: Petition dismissed.

Table of Content
1. factual assessment of the tender challenge process and procedural history. (Para 1 , 2)
2. petitioner's argument regarding non-compliance with nit specifications and the limitations of administrative discretion. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10)
3. respondent's defense, procedural status, and claims that technical requirements were satisfied appropriately. (Para 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. scope of judicial review in commercial transactions and non-interference in tender decisions absent arbitrariness. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
5. distinction and application of precedents regarding tender conditions and administrative decision-making. (Para 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34)
6. final outcome and dismissal of the writ petition. (Para 36 , 37)

JUDGMENT

LAPITA BANERJI, J.

Challenge in the present writ petition is to a Technical Evaluation Report dated February 25, 2026 (Annexure P-1) by the Punjab Health Systems Corporation-respondent No.1 and all the consequential actions taken thereto by respondent No.1 resulting in award of the tender in question, to the respondent No.2 company.

2. The brief facts of the case are as follows:

i) The petitioner is a private limited company involved in providing healthcare technologies and solutions in the field of diagnostic and therapeutic procedures.

ii) The respondent No.1 issued an e-tender dated December 01, 2025 (hereinafter referred to as the “Subject Tender”) for supply and installation of a 3.0 Tesla Magnetic Resonance Imaging (MRI) Machine (hereinafter referred to as the “MRI Machine”) at the Punjab Institute of Liver Biliary Sciences, Phase-3B1, SAS Nagar, Mohali, Punjab.

iii) Annexure-VIII of the bid documents contained the technical specifications of the MRI machine in order for a bid to be technically responsive. The said specifications related to the magnet, shim system, gradient system, coils, computer system image processor, image sequencing etc.

iv) On December 02, 2025, a pre-bid meeting was held with all the prospective bidders, inter alia, to discuss the mandatory specifications of the Subject Tender and clarifications regarding the same.

v) Certain Clauses were amended subsequent to the issuance of the Notice Inviting Tenders (NIT). The said Clauses are as follows:

a) Dedicated coil/coil combination for peripheral angiography of 32 or more channels with coverage of at least 80 cm, to be exclusively quoted for that application and not overlapping with other clinical applications; [Annexure VIII, Clause 5(e) and 5.a of the Bid Document, as subsequently amended]

b) Provision of Artificial Intelligence and Deep Learning- based image reconstruction applications such as Deep Resolve Boost or Swift Brain or AIR Recon DL or SMARTSPEED or equivalent, duly supported by original product literature; [Added by way of subsequent clarification/amendment]

c) Availability of single and multi-shot EPI imaging techniques; [Annexure VIII, Clause 10 of the Bid document]

d) Completely free-breathing dynamic liver imaging with motion correction with temporal resolution of 7 seconds per phase or better (CS GRASP VIBE/CS THRIVE/DISCO Star or equivalent); [Annexure VIII, Clause 11(kk)(1)of the Bid Document] and e) The specification regarding accessories was also specified originally under Annexure VIII, Clause 17 of the Bid Documents and underwent substantial amendment/modification thereafter.”

vi) After the pre-bid negotiations, the bids relating to the Subject Tender were submitted online by the prospective bidders within the stipulated time i.e January 28, 2026. On January 30, 2026 the technical bids were opened and bids of both the petitioner and respondent No.2 were held to be technically responsive. The petitioner identified multiple material deviations in the technical bid submitted by the respondent No.2 company, which according to the petitioner made the bid liable to be rejected.

Broadly, the said non-compliances were as follows:

a) Non-compliance wit

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