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2026 Supreme(Online)(Chh) 8845

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Ramesh Sinha, CJ, Ravindra Kumar Agrawal, J
M/s Global Services – Appellant
Versus
State of Chhattisgarh – Respondent
WPC No. 1714 of 2026



Advocates:
For the Appellants/Petitioners: Rohit Sharma
For the Respondents: Priyank Rathi, Shikhar Shukla

Participation in a tender process or being declared the L-1 bidder does not create a vested or enforceable right to a contract; courts will not interfere with administrative policy decisions to change procurement methodologies unless they are shown to be arbitrary, mala fide, or contrary to statutory mandate.

Headnote:(A) Constitution of India - Art. 226 - Tender process - Cancellation of tender - L-1 bidder - Challenge to cancellation - Petitioner declared L-1, but tender cancelled due to subsequent policy shift requiring procurement through GeM portal - Principles of judicial review in contractual matters - Court sitting in judicial review cannot sit as an appellate authority to substitute its own view over policy decisions - No vested or enforceable right accrues to L-1 bidder until a formal work order is issued - Legitimate expectation is subject to overriding public interest and cannot override statutory policy. (Paras 23, 25, 29, 40)

Facts of the case:
The petitioner, a firm providing manpower services, participated in a tender floated by the Municipal Council. Despite being declared the L-1 bidder, the tender was cancelled by the authorities on the ground that it should have been processed via the GeM portal, pursuant to new policy communications. The petitioner challenged this cancellation as arbitrary and retrospective.

Findings of Court:
The Court held that the decision to shift to the GeM portal is a bona fide policy decision intended to ensure transparency, uniformity, and efficiency in public procurement. As no formal work order was ever issued, no concluded contract existed, and the petitioner had no enforceable legal right.

Issues: Whether the cancellation of a tender process to align with a new policy (GeM portal) after being declared L-1 is arbitrary, and whether the petitioner has a vested right to the contract.

Ratio Decidendi: In matters of public procurement, administrative authorities have the latitude to change procurement methodologies in the public interest. Judicial review of such policy decisions is limited to examining the decision-making process; absent mala fides or irrationality, the court will not interfere, especially where no concluded contract exists.

Result: Petition dismissed.

Table of Content
1. summary of facts involving tender processes and l-1 status. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. petitioner's arguments regarding arbitrariness and legitimate expectation. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14)
3. respondents' arguments justifying policy-driven tender cancellation. (Para 15 , 16 , 17 , 18 , 19 , 20)
4. court holds that tender cancellation for policy alignment is valid when no contract exists. (Para 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41)

1. Heard Mr. Rohit Sharma, learned counsel for the petitioner as well as Mr. Priyank Rathi, learned Government Advocate, appearing for the State/respondents No.1 & 2 and Mr. Shikhar Shukla, learned counsel appearing for respondent No.3.

2. The petitioner has filed this petition under Article 226 of the Constitution of India, with the following relief(s) :-

“10.1 Issue an appropriate writ, order or direction, more particularly in the nature of Certiorarified mandamus or any other writ, quashing and setting aside the impugned order dated 17/03/2026 passed by the Chief Municipal Officer, Municipal Council, Janjgir-Naila (Annexure P/1);

10.2 Issue an appropriate writ, order or direction, more particularly in the nature of Mandamus, commanding the respondents to act upon the Tender Notice dated 17/11/2025 bearing Tender No. 179880 and to issue the work order in favour of the petitioner, being the duly declared L-1 bidder, forthwith;

10.3 That, this Hon'ble Court may kindly be pleased to grant any other relief(s), which is deemed fit and proper in the aforesaid facts and circumstances of the case.”

3. Brief facts of the case, in a nutshell, are that the petitioner is an experienced firm engaged in the business of providing skilled, semi-skilled and unskilled manpower services to various Government, Semi-Government and private institutions. In the ordinary course of its business, the petitioner participates in tender processes floated by different authorities and undertakes contractual assignments in accordance with law. The Office of the Municipal Council, Janjgir-Naila, District Janjgir-Champa issued a tender notice dated 17.11.2025 bearing Tender No. 179880 through the e-procurement system for engagement of 95 manpower personnel of different categories for execution of works within the Municipal Council.

4. In response to the said tender notice, the petitioner, being eligible and fulfilling all prescribed conditions, submitted its bid within the stipulated time. The petitioner deposited an Earnest Money Deposit (EMD) of Rs. 97,920/- and also paid the requisite tender fee of Rs. 3,000/- for valid participation. Along with the bid, the petitioner submitted all necessary documents including an affidavit declaring the genuineness of documents and affirming that it had not been blacklisted or disqualified by any authority.

5. Upon scrutiny of the bids, the petitioner was found to be technically qualified, and accordingly, the financial bids of eligible bidders were opened on 30.01.2026. In the said process, the petitioner emerged as the lowest (L-1) bidder amongst all participants. Despite completion of the tender process and declaration of the petitioner as L-1, no work order was issued in its favour by the respondent authorities. In the meantime, acting in anticipation of commencement of work, the petitioner made necessary arrangements and mobilized resources for execution of the contract. Thereafter, the petitioner submitted a representation dated 23.02.2026 before the respondent authorities requesting issuance of the work order; however, no action was taken on the said representation.

6. Aggrieved by such inaction, the petitioner approached this Hon’ble Court by filing a writ petition, which was subsequently withdrawn with liberty to challenge any subsequent adverse action. Subsequently, the respondent authorities, vide order dated 17.03.2026, cancelled the tender process on the groun

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