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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
ARINDAM SINHA, SATYA VEER SINGH
Kant Construction Company – Appellant
Versus
State Of U.P. – Respondent
Judgment :
Arindam Sinha, J.
1. The writ petitions, lead case Writ-C no. 10755 of 2026 (M/S Kant Construction Company vs. State Of U.P. And 3 Others) are being heard together.
2. There was auction notice dated 12th January, 2026 inviting bids for obtaining mining lease in respect of several areas, duly declared. Chapter IV in U.P. Minor Minerals (Concession) Rules, 2021 provides the procedure. There is no challenge to the auction notice. Petitioners are participants in the e-auction, whose bids were rejected on technicalities.
3. The controversy is in respect of clauses 2 to 4 in aforesaid auction notice. It is necessary for adjudication of the writ petitions, to reproduce below relevant requirements under the auction notice.
4. Petitioners have demonstrated, by disclosures in their respective writ petitions, the required documents were uploaded along with their bids. It is only in case of petitioner in Writ-C no. 12100 of 2026 (M/s Rudra Enterprises vs. State of U.P. and 5 others) there has been contention raised on behalf of the successful bidder that petitioner did not upload the challan showing deposit of money to obtain demand draft of Rs. 15,000/-, liable to be forfeited on the co
The rejection of technical bids based on arbitrary grounds was unjustified, necessitating a fresh tender process due to the flawed evaluation and lack of two qualified bidders.
(1) Government Contract – Tender – State Government is assumed to know commercial value of natural resources tendered/auctioned, along with commercial propensity to earn in a future point of time.(2)....
Court ruled the rejection of a technical bid for using an authorized dealer's DSC was arbitrary as eligibility conditions were met, emphasizing fair competition in tender processes.
The court affirmed that auction terms must provide legal certainty, and found no ambiguity in the terms of the e-auction for mining leases, thus upholding the auction process.
The tendering process must adhere strictly to statutory rules, particularly when it comes to valid bidders and quotation limits.
Court exercising powers under Article 226 of Constitution of India has jurisdiction to examine decision making process without even going into merits of such decision.
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