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2026 Supreme(Online)(Chh) 10188

IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Ramesh Sinha, CJ, Ravindra Kumar Agrawal, J
Prem Chand And Company – Appellant
Versus
State Urban Development Agency – Respondent
WPC No. 1437 of 2026



Advocates:
For the Appellants/Petitioners: Mr. Shivam Agrawal, Mr. Hemant Kumar Agrawal
For the Respondents: Mr. Rishabh Garg, Mr. Prasoon Bhaduri

The High Court, in exercise of its power of judicial review under Article 226, must exercise great restraint in interfering with the terms and conditions of government tenders, only intervening when a clear case of arbitrariness, irrationality, or mala fides is established by the petitioner.

Headnote:(A) Constitution of India - Art. 226 - Tender process - Judicial review - Interference in contractual/commercial matters - Restraint required - Court should not sit as appellate authority over administrative decisions unless the decision-making process is vitiated by arbitrariness, irrationality, mala fides, or procedural impropriety.

Facts of the case:
The petitioner, a partnership firm, challenged the conditions of a tender floated for engagement of a consultant for audit and compliance in various Urban Local Bodies. The petitioner contested the eligibility criteria mandating prior experience in Urban Local Bodies as arbitrary and restrictive, and challenged the 80:20 QCBS weightage and lack of GeM portal publication.

Findings of Court:
The court found that the eligibility criteria, designed for a specific project, fall within the administrative domain of the tender authority. The court held that no manifest arbitrariness or mala fide intent was demonstrated and reiterated that courts must exercise restraint in interfering with commercial and technical tender conditions.

Issues: Whether the Court should invoke its writ jurisdiction to interfere with the eligibility criteria and evaluation methodology prescribed in a government tender.

Ratio Decidendi: Judicial review in tender matters is limited; the Court will not interfere in commercial decisions unless there is clear evidence of arbitrariness, irrationality, or bias. Policies formulated to meet specific technical project requirements are within the authority's discretion.

Result: Petition dismissed.

Table of Content
1. petitioner challenges specific eligibility conditions and procedural aspects of a government tender. (Para 1 , 2 , 3 , 4)
2. parties debate the threshold for judicial review in public procurement and contractual matters. (Para 5 , 6 , 7)
3. court applies the doctrine of judicial restraint, upholding the authority's discretion in framing technical tender criteria. (Para 8 , 9 , 10 , 11 , 12)

NAFR

Hon'ble Shri Ramesh Sinha, Chief Justice

Hon'ble Shri Ravindra Kumar Agrawal, Judge

Order on Board

Per Ramesh Sinha, Chief Justice

01/04/2026

1. Heard Mr. Shivam Agrawal, along with Mr. Hemant Kumar Agrawal, learned counsel for the petitioner. Also heard Mr. Prasoon Bhaduri, Dy. Advocate General, appearing for the Respondent/State and Mr. Rishabh Garg, learned counsel for the Respondent No. 1 and 2.

2. By this petition under Article 226 of the Constitution of India, the petitioners seek for the following relief(s):

“1. That, this Hon'ble Court may kindly be pleased to call for the entire records pertaining to the Tender (Request for Proposal) "RFP for Engagement of Consultant for conducting Post Audit, Pre/Internal Audit & Statutory Compliance in Durg Cluster-48 ULBs of Chhattisgarh State." (2nd Call) bearing RFP No. 8183/STN-186680/SUDA/IA/2026 DATED 02/03/2026 (System Tender No. 186680) floated by Respondent Nos. 01 & 02 in the Chhattisgarh Government Integrated e-Procurement Portal [ULB Urban Local Body).

2. That, this Hon'ble Court may kindly be pleased to issue appropriate Writ(s), Order(s), Direction(s) to quash the arbitrary & illegally 2nd Call for tender (Request for Proposal) bearing RFP No. 8183/STN-186680/SUDA/IA/2026 DATED 02/03/2026 (System Tender No. 186680) [Dated 03/03/2026 as per the Corrigendum Notice floated by Respondent Nos. 01 & 02 in the Chhattisgarh Government Integrated e-Procurement Portal for "RFP for Engagement of Consultant for conducting Post Audit, Pre/Internal Audit & Statutory Compliance in Durg Cluster-48 ULBs of Chhattisgarh State." (2nd Call).

3. That, in the alternate, this Hon'ble Court may kindly be pleased to issue appropriate Writ(s), Order(s), Direction(s) to respondent authorities to offer the opportunity of participation in the tender process to the Petitioner Partnership Firm and to give sufficient-time to it to apply/bid with respect to the 2nd Call for tender.

4. That, this Hon'ble Court may kindly be pleased to set-aside/quash the "restrictive minimum eligibility criteria exclusive to ULB [Urban Local Body] experience" which suffers from the vices of illegality & arbitrariness.

5. That, this Hon'ble Court may kindly be pleased to issue appropriate orders/directions to the subject authorities to correct/relax the illegal & arbitrary restriction imposed by the respondent SUDA authorities with respect to the minimum eligibility criteria to participate in the 2nd Call for tender (System Tender No. 186680) & to instead allow the participation of firms having experience in State/ Central Government or PSUs. Departments, organizations, inter alia. Semi-Government

6. That, this Hon'ble Court may kindly be pleased to issue appropriate orders/directions to the subject authorities to have the 2nd Call for tender (System Tender No. 186680) floated in the Government e-Marketplace (GeM) Portal, as per the letter dated 01.09.2025 written by the Secretary to the Department of Commerce & Industry, Government of Chhattisgarh.

7. Cost of the petition & compensation for the mental agony, harassment & the hardships accrued to the petitioner because of the arbitrary & illegal act of the respondent authorities.

8. That, this Hon'ble Court may grant any other relief in favour of the Petitioner, which it deems fit in the facts and circumstances of the case, in the interest of justice.”

3. The brief facts of the case are that, the Petitioner is a well-established partnership firm of Chartered Accountants, registered under the Chartered Accountants Act, 1949, having extensive experience in

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