HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW
Shekhar B. Saraf, Abdhesh Kumar Chaudhary, JJ.
M/S Konkan Railway Corporation Ltd. Thru. Auth. Mr. Om Prakash Verma – Petitioner
Versus
Union Of India Thru. General Manager (N.E.R.) Gorakhpur U.P. And Others - Respondents
WRIT - C No. - 5810 of 2026
Decided On : 29-05-2026
| Table of Content |
|---|
| 1. factual context of tender rejection and administrative explanation. (Para 1 , 2 , 3 , 4 , 5) |
| 2. arguments concerning technical compliance vs. administrative flexibility. (Para 6 , 7 , 8) |
| 3. analysis of curable defects and prohibition against post-hoc justifications. (Para 9 , 10 , 11 , 12 , 13 , 14) |
| 4. judicial intervention and direction to cure technical defects. (Para 15 , 16 , 17) |
JUDGMENT :
1. Supplementary affidavit filed today in Court by the petitioner is taken on record.
2. Heard Sri Sudeep Seth, learned Senior Advocate assisted by Sri Alok Kumar Singh and Kazim Ibrahim, learned counsel appearing on behalf of the petitioner and learned counsel appearing on behalf of the respondents.
3. This is a writ petition under Article 226 of the Constitution of India, wherein the writ petitioner has made the following main prayers:-
"i. Issue a writ, order or direction in the nature of Certiorari quashing the impugned rejection of the Techno-Commercial Bid (Technical Bid) of the Petitioner, submitted in furtherance of Tender No.EPC-PSI-GKC-CHPG-NER, dated 30.09.2025, floated by the Respondent No. 2 (Annexure No. 1 - as communicated to Petitioner vide e-mail dated 19.05.2026 sent at 17:30 by the Respondent No. 2);
ii. Issue a writ, order or direction in the nature of Certiorari quashing the impugned opening of financial bids, as notified on 19.05.2026 at 19:59:57 hours, i.e., within a span of three hours after the Petitioner was informed via impugned email regarding the rejection of its technical bid. (contained as Annexure No. 2);
iii. Issue a writ, order or direction in the nature of mandamus directing the Respondent No. 2 to re-evaluate the Techno-Commercial Bid (Technical Bid) of the Petitioner, submitted in furtherance of Tender No. EPC-PSI-GKC-CHPG-NER, dated 30.09.2025, floated by the Respondent No. 2;
iv. Issue a writ, order or direction in the nature of mandamus directing the Respondent No. 2 to not proceed in furtherance of tender process including declaration, execution and issuance of work order in favour of L-1 or any other consequential action in the tender process."
4. The bid of the petitioner had been rejected on the technical ground that it "did not fulfill the eligibility criteria". In the said impugned e-mail dated May 19, 2026, nothing further had been stated, as had been pointed out by us in our earlier order dated May 26, 2026. Thus, while staying the earlier tender process as no further action had been taken by the authority after opening of the financial bid, we also directed the respondents to provide a copy of the reasoned order, within 24 hours to the petitioner.
5. Subsequently, on May 26, 2026, pursuant to the order passed by this Court, a further explanation was provided by the North Eastern Railway, wherein it was submitted as follows:-
"As pr our tender conditions and as per the legal opinion of North Eastern Railway/Gorakhpur Legal Cell obtained in similar instances, the stamp paper for the Bank Guarantee should have been as per UP Stamp Act. However, you have not submitted the Stamp Paper of the requisite amount. Therefore, there was a legal lacuna in considering your case. In our tenders, rejection on this ground has been done for all non conforming tenders on this count."
6. Sri Sudeep Seth, learned Senior Advocate appearing on behalf of the petitioner has submitted that adequacy of stamp duty is a curable defect and the Stamp Act is a fiscal measure enacted to secure revenue for the State and time and again the Courts have held that the provision of Stamp Act has not been enacted to arm a litigant with a weapon of technicality to meet the case of his opponent. To buttress his aforesaid argument, learned Senior Advocate appearing on behalf of the petitioner has relied on a a judgment rendered by Hon'ble the Supreme Court in Hindustan Steel Ltd. vs. M/s. Dalip Construction Company reported in (1969) 1 SCC 597.
7. It has been next submitted by the learned Senior Advocate appearing on behalf o
Hindustan Steel Ltd. vs. M/s. Dalip Construction Company
Poddar Steel Corporation vs. Ganesh Engineering Works and others
Mohinder Singh Gill v. Chief Election Commr.
Meerut Development Authority v. Assn. of Management Studies
State of Jharkhand v. CWE-SOMA Consortium
Tata Cellular v. Union of India
Master Marine Services (P) Ltd. v. Metcalfe & Hodgkinson (P) Ltd.
The decision-making process of the tendering authority should be respected unless there is mala fide or perversity, and the court should only interfere in tender matters in furtherance of public inte....
Judicial review in tender matters limited to arbitrariness or mala fides; courts defer to authority's bid compliance assessment, refusing substitution unless perverse.
The authority to cancel a tender prevails under administrative discretion, based on the rationale of maintaining integrity, fairness, and transparency in public procurement processes.
In tender matters, judicial review is limited; courts defer to tender authority's bid responsiveness assessment unless arbitrary, mala fide or perverse, prioritizing public interest in infrastructure....
The court emphasized the limited scope of judicial review in tender matters, the importance of punctilious and rigid enforcement of tender terms, and the uniform application of tender requirements to....
Judicial review in tender matters is limited to assessing arbitrariness, irrationality, or mala fides; decisions should reflect fair competition and not accommodate late submissions of corrected bids....
The court emphasized that strict compliance with tender conditions is essential and that arbitrary qualification despite disqualifications undermines the fairness required in the contracting process.
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.
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