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2026 Supreme(Online)(Chh) 3009

HIGH COURT OF CHHATTISGARH AT BILASPUR
NATWAR LAL AGRAWAL – Appellant
Versus
STATE OF CHHATTISGARH – Respondent
WPC No. 412 of 2026



Advocates:
For the Appellants/Petitioners: Ashutosh Mishra
For the Respondents: S.S. Baghel, Raghavendra Pradhan

Challenge against the arbitrary and discriminatory rejection of the lowest bid in a government tender without providing notice or an opportunity for clarification.

Headnote:The petition is filed under Art. 226 of the Constitution of India challenging the arbitrary and discriminatory rejection of a bid for the construction of a Primary Health Care Centre-cum-50 Bedded Hospital. The petitioner, a registered B-Class civil contractor, contends that despite quoting the lowest bid (9.9% below estimated cost), the bid was rejected on the vague ground of non-submission of clarification without prior notice. It is further alleged that the same credentials were accepted by the respondent in another tender process. The primary issue is whether the exclusion of the lowest bidder without notice or opportunity for clarification, while accepting identical credentials in a separate tender, is arbitrary and discriminatory. The court observed the necessity of reviewing the returns from the respondents to determine the validity of the bid rejection. Till then, the respondent authorities are restrained from proceeding further or issuing any work order to the any of the party with respect to the tender in question.

Order Sheet

30/01/2026

Heard Mr. Ashutosh Mishra, learned counsel for the petitioner. Also heard Mr. S.S.Baghel, learned Government Advocate for the State/respondent No. 1 as well as Mr. Raghavendra Pradhan, learned counsel for the respondent No. 2.

Mr. Ashutosh Mishra, learned counsel appearing for the petitioner submits that the present writ petition arises out of the arbitrary and discriminatory rejection of the petitioner's bid in e-Tender No. 176873 dated 23.09.2025 issued by respondent No. 2-Chhattisgarh State Medical Services Corporation Limited for the work of construction of a Primary Health Care Centre-cum-50 Bedded Hospital at Patthalgaon, District Jashpur.

Mr. Mishra submits that the petitioner, a duly registered B-Class civil contractor, had submitted his bid on 13.10.2025 in strict compliance with all tender conditions and quoted 9.9% below the estimated cost, which was the lowest and most beneficial to the public exchequer. However, when the financial bids were opened on 05.01.2026, the petitioner was illegally excluded and a higher bidder quoting 9.2200% below was declared L-1, followed by an email to the petitioner stating that his bid was rejected on the vague ground of non-submission of "clarification", without any prior notice or opportunity. Significantly, the very same documents and eligibility credentials submitted by the petitioner on the same date were accepted by the same respondent-department in another tender bearing No. 176875, in which his bid was found valid and opened, thereby exposing the arbitrary, discriminatory and malafide approach of the respondents. The impugned action has not only caused grave prejudice to the petitioner but has also resulted in unjustified financial loss to the State exchequer, warranting interference by this Hon'ble Court under Article 226 of the Constitution of India.

Issuance of notice to the respondents No. 1 and 2 are dispensed with as Mr. Baghel and Mr. Pradhan appears on behalf of the State/respondent No. 1 and CGMSCL-respondent No. 2, respectively.

Issue notice to the respondent No. 3, as per rules, on payment of process fee within a period of two days, by ordinary as well as speed post.

The respondent-State as well as CGMSCL may file their respective returns by Monday i.e. 02.02.2026 after serving a copy of the same to the learned counsel for the petitioner. Thereafter, the petitioner, if so advised, may file his rejoinder before the next date.

Let the matter be listed for final disposal on 05.02.2026.

Till then, the respondent authorities are restrained from proceeding further or issuing any work order to the any of the party with respect to the tender in question.

The learned counsel for the State as well as CGMSCL are directed to communicate this order to the respondent No. 3, who is stated to be the ‘L-1’, forthwith.

Certified copy, as per rules.

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