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2026 Supreme(Online)(Chh) 8547

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Ramesh Sinha, CJ, Ravindra Kumar Agrawal, J
Nilesh Patel – Appellant
Versus
Chhattisgarh State Power Distribution Company Limited – Respondent
WPC No. 1749 of 2026



Advocates:
For the Appellants/Petitioners: Veer Verma
For the Respondents: Shashwat Rai

The scope of judicial review in government tender matters is limited to the decision-making process; Courts act with restraint and generally do not interfere under Article 226 unless a decision is shown to be arbitrary, mala fide, or irrational.

Headnote:(A) Constitution of India - Article 14 and 226 - Tender process - Judicial review - Scope of - Petitioner challenging the award of contract in an e-tender process alleging lack of transparency and arbitrary evaluation - Held, judicial review in contractual matters is limited to the decision-making process - Courts do not sit as an appellate authority to evaluate bids or substitute the decision of the tendering authority - Absent specific evidence of mala fides, arbitrariness, or irrationality, no interference is warranted under Article 226 of the Constitution of India. (Paras 17, 18, 19, 20)

Facts of the case:
The petitioner, an eligible bidder, participated in an e-tender process invited by the Respondent Company for manpower outsourcing. Upon the contract being awarded to a third party, the petitioner filed a writ petition alleging a lack of transparency and failure to follow fair evaluation criteria, seeking an inquiry and the withholding of the work order.

Findings of Court:
The Court observed that the tender process followed an online e-bidding system designed for objectivity and that the petitioner failed to place specific material on record to substantiate claims of irregularity or ineligibility of the successful bidder. The Court concluded that the evaluation was a matter within the domain of the tendering authority and did not warrant judicial intervention.

Issues: 1. Whether the tender process was conducted in a fair and transparent manner. 2. Whether the Court should exercise extraordinary jurisdiction to interfere in the contractual decision of an instrument of the State.

Ratio Decidendi: Judicial review of government contracts is restricted to examining the decision-making process for arbitrariness, irrationality, and bias. Unless such defects are proven, the internal evaluation of bids by the tendering authority must be respected as per the principle of judicial restraint.

Result: Petition dismissed.

Table of Content
1. prayer for judicial intervention in the tender selection process. (Para 1 , 2)
2. factual background involving alleged lack of transparency in e-bidding. (Para 3 , 4 , 5 , 6)
3. competing contentions on fairness and scope of judicial review. (Para 7 , 8 , 9)
4. analysis of the limits of judicial intervention in contractual matters. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
5. precedential jurisprudence regarding restraint in tender award disputes. (Para 18 , 19)
6. dismissal of the petition due to lack of merit. (Para 20)

NAFR

(Cause-title taken from Case Information System)

Order on Board

Per Ramesh Sinha, Chief Justice

16.04.2026

1. Heard Mr. Veer Verma, learned counsel for the petitioner as well as Mr. Shashwat Rai, learned counsel appearing for respondents No.1 and 2

2. By filing the present petition, the petitioner has prayed for following relief(s) :-

“10.1 That, this Hon'ble Court may kindly be pleased to issue a writ of mandamus directing the Respondent Nos. 1 and 2 to conduct a detailed inquiry into the entire tender process under Tender No. 5313 dated 23.02.2026, particularly regarding the completeness and validity of documents submitted by Respondent No.3, the criteria and procedure adopted for evaluation, compliance_with tender conditions and whether a level playing field was ensured for all bidders, and to submit the inquiry report before this Hon'ble Court within such time as may be deemed fit.

10.2 That, this Hon'ble Court may kindly be pleased to issue a writ of mandamus directing Respondent Nos. 1 and 2 to withhold the issuance of the work order in favour of private Respondent No.3 till the completion of the inquiry and till further orders of this Hon'ble Court.

10.3 That, the Hon'ble Court may kindly be pleased to grant any other relief, as it may deems fit and appropriate.”

3. Facts of the case are that the Respondent Company, namely Chhattisgarh State Power Distribution Company Limited (CSPDCL), is an undertaking of the State of Chhattisgarh. On 23.02.2026, Respondent No. 1 issued a tender notice inviting e-bids under Tender No. 5313 dated 23.02.2026 from interested individuals/agencies for engagement of manpower through outsourcing for the Deorbija Distribution Center under Respondent No. 2, i.e., Executive Engineer (O&M), CSPDCL Division, Saja, District Bemetara (C.G.). The last date and time for submission of e-bids was 14.03.2026 at 5:00 PM, and the date of opening of the bids was 15.03.2026. Only those contractors possessing valid GST registration were eligible to participate in the said e-tender process through the online e-bidding portal of CSPDCL. Manual tenders were not accepted.

4. The the Petitioner, being eligible, participated in the aforesaid tender process and duly submitted his bid through the prescribed e-bidding procedure. On 15.03.2026, the tender was opened by the respondent authorities. However, the process was not conducted in a transparent manner, and the contract was arbitrarily awarded to the private Respondent No. 3. The tender process conducted by the respondents lacked transparency, and the Petitioner has a reasonable apprehension that the documents submitted by Respondent No. 3 were either incomplete or invalid, and/or that the evaluation criteria and procedure were not followed in a fair, transparent, and impartial manner.

5. On 08.04.2026, the Petitioner submitted a written complaint to Respondent No. 1 seeking an inquiry into the aforesaid tender process. In the complaint, the Petitioner stated that under Tender No. 10-30/2025-26/PUR/5313 dated 23.02.2026, the private Respondent No. 3, namely M/s W N Electricals, had been declared as L1 (lowest bidder). The Petitioner raised concerns requiring clarification to ensure transparency and fairness, including:

(i) whether the documents submitted by Respondent No. 3 were complete and valid;

(ii) the criteria and procedure adopted during the tender evaluation process;

(iii) whether all applicable rules and conditions

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