M/S Sunil Kumar Agrawal vs State Of Chhattisgarh on 29 April, 2026

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    Chattisgarh High Court

    M/S Sunil Kumar Agrawal vs State Of Chhattisgarh on 29 April, 2026

    Author: Ramesh Sinha

    Bench: Ramesh Sinha

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                                                                          2026:CGHC:19816-DB
                                                                                            NAFR
              Digitally
    
    
                                     HIGH COURT OF CHHATTISGARH AT BILASPUR
              signed by
              BABLU
    BABLU     RAJENDRA
    RAJENDRA  BHANARKAR
    BHANARKAR Date:
              2026.04.30
              10:11:55
              +0530
    
    
    
    
                                                      WPC No. 1992 of 2026
    
                           M/s Sunil Kumar Agrawal Through Proprietor Sunil Kumar Agrawal,
                           Office At-Sewa Kunj Road, Near Girls College, Raigarh, District-
                           Raigarh (C.G.)
                                                                                 ... Petitioner(s)
                                                              versus
                           1 - State Of Chhattisgarh Through The Secretary, Water Resource
                           Department, Ministry, Mahanadi Bhawan, Atal Nagar Nava Raipur,
                           District- Raipur (C.G.)
                           2 - Engineer-In-Chief Water Resources Department, Raipur District-
                           Raipur (C.G.)
                           3 - Chief Engineer Mahanadi Godavari Basin, Water Resource
                           Department, Raipur, District- Raipur (C.G.)
                           4 - Chief Engineer (Tender Cell) O/o EinC Shivanth Bhawan North Block
                           Sector 19, Nava Raipur Atal Nagar, Water Resource Department,
                           Raipur District- Raipur (C.G.)
                           5 - Executive Engineer Water Resources Division, Balod, District- Balod
                           (C.G.)
                           6 - M/s Ram Shiromani Tiwari Through- Proprietor Ram Shiromani,
                           Office At-Vardhman Nagar, House No. 103, Rajnandgaon, District
                           Rajnandgaon (C.G.)
                                                                                 ... Respondent(s)

    For Petitioner : Ms.Hamida Siddique, Advocate
    For Respondents : Mr.Vivek Sharma, Advocate General with
    No.1 to 5/State Mr.Praveen Das, Additional Advocate General
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    Hon’ble Shri Ramesh Sinha, Chief Justice
    Hon’ble Shri Ravindra Kumar Agrawal, Judge

    SPONSORED

    Order on Board

    Per Ramesh Sinha, Chief Justice

    29.04.2026

    1. Heard Ms. Hamida Siddique, learned counsel for the petitioner as

    well as Mr.Vivek Sharma, learned Advocate General along with

    Mr.Praveen Das, learned Additional Advocate Geneal appearing for

    respondents No.1 to 5/State.

    2. By filing the present petition, the petitioner has prayed for following

    relief(s) :-

    “10.1 That, the Hon’ble Court may kindly be pleased to
    quash/set-aside the disqualification e-mail issued to the
    petitioner by Respondent no. 4.

    10.2 That, the Hon’ble Court may kindly be pleased to
    direct the respondent authority may allow the participation
    in Tender no, 186416 NIT No. 08/SAC/25-26, Dated
    06.03.2026.

    10.3 That, the Hon’ble court may kindly be pleased to direct
    the respondent authorities to reconsider the “Bid Capacity
    Document” of the petitioner accordance with clause 1.3 of
    the NIT and applicable law.

    10.4 That, this Hon’ble Court may kindly be pleased to
    direct the respondent authorities open & evaluate the
    technical bid of the petitioner.

    10.5 That, That, the Hon’ble Court may kindly be pleased to
    direct the respondent authorities if technical bid of the
    3

    Petitioner is found to be L1 then he may be declared L1 in
    place of the Respondent no. 6

    10.6 That, this 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 Department issued a

    Notice Inviting Tender (NIT) for civil works, for which the petitioner,

    being fully eligible, submitted his bid within time along with all

    requisite documents in Envelope ‘A’ and ‘B’, duly complying with

    all conditions including Clause 1.3 relating to bid capacity. The

    petitioner has substantial experience in execution of similar civil

    engineering works and has successfully completed projects for

    the respondent department. All required certificates, including

    pre-bid qualification and work experience, were duly submitted

    and are verifiable as per the NIT. Despite full compliance with the

    tender conditions, the petitioner was arbitrarily disqualified without

    any specific reason being communicated. The impugned e-mail is

    vague and does not disclose the grounds of disqualification.

    4. Upon receiving the impugned communication, the petitioner

    immediately submitted a detailed representation along with

    additional supporting documents; however, the respondents failed

    to consider the same and proceeded with the tender process. The

    respondent authorities thereafter declared Respondent No. 6 as

    L1, despite the petitioner quoting a significantly lower bid amount

    (₹23.29 crore approx.) compared to Respondent No. 6 (₹25.00

    crore approx.), resulting in a substantial loss to the public
    4

    exchequer. The petitioner’s disqualification does not fall within any

    of the grounds specified under Clause 2.1.6 of the NIT, and no

    deficiency or false information has been attributed to him.

    5. The petitioner has previously participated in similar tenders with

    identical documentation and has been declared successful,

    demonstrating consistency and credibility in his qualifications. The

    action of the respondents is arbitrary, non-transparent, and

    violative of principles of natural justice, as no reasons for

    disqualification have been furnished and relevant materials have

    been ignored. The impugned action is also violative of Articles 14

    and 19(1)(g) of the Constitution of India, as it denies a level

    playing field and unfairly excludes the petitioner from the tender

    process. Hence, this petition.

    6. Learned counsel for the petitioner submits that the action of the

    respondent authorities is arbitrary, discriminatory, and violative of

    the doctrine of level playing field, which mandates that all similarly

    placed bidders must be afforded equal and fair opportunity in

    matters of public contracts. The petitioner, being fully eligible, has

    been unfairly excluded. It is contended that the disqualification of

    the petitioner is ex facie illegal, as no deficiency or defect in the

    documents submitted by him has been pointed out. The impugned

    e-mail is vague and reflects a pre-determined intent to exclude the

    petitioner from the tender process. Learned counsel submits that

    a bare perusal of the documents submitted by the petitioner in
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    compliance with Clause 1.3 (Bid Capacity) clearly establishes that

    the petitioner fulfilled all eligibility criteria. The disqualification,

    therefore, is wholly unjustified.

    7. It is further submitted that even after receipt of the impugned

    communication, the petitioner promptly submitted a detailed

    representation along with additional supporting documents.

    However, the respondents failed to consider the same and

    proceeded to open the technical bid of Respondent No. 6 alone,

    thereby effectively ousting the petitioner. Learned counsel argues

    that the respondent authorities have erected artificial barriers to

    exclude the petitioner, which is impermissible in law. The State

    cannot act in a manner that skews the tender process in favour of

    a particular bidder. It is submitted that the arbitrary disqualification

    has caused serious prejudice to public interest, as the petitioner’s

    financial bid is approximately ₹3 crores lower than that of the

    selected bidder. The impugned action has resulted in an

    avoidable loss to the public exchequer, contrary to the State’s

    obligation to ensure transparency and economic prudence.

    Learned counsel contends that malice in law and in fact is

    evident, as the petitioner has been excluded without any valid

    reason, indicating favoritism towards Respondent No. 6. It is

    further submitted that such arbitrary action is violative of Articles

    14, 19(1)(g), and 300A of the Constitution of India, as it denies

    equality, fair opportunity in trade, and lawful consideration in

    public contracts. Reliance is placed on the judgments of the
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    Hon’ble Supreme Court in Vinishma Technologies Pvt. Ltd. v.

    State of Chhattisgarh, Civil Appeal No.2025/2025, decided on

    06.10.2025 and Ramana Dayaram Shetty v. International

    Airport Authority of India, (1979) 3 SCC 489, wherein it has

    been held that the State cannot act arbitrarily in granting or

    withholding largesse and must adhere to fairness, transparency,

    and non-discrimination. In view of the above, it is prayed that this

    Court may be pleased to set aside the impugned action of

    disqualification and grant appropriate relief in the interest of

    justice.

    8. On the other hand, learned Advocate General appearing for

    respondents No.1 to 5/State opposes the submissions of learned

    counsel for the petitioner and submits that the entire tender

    process has been conducted strictly in accordance with the terms

    of the Notice Inviting Tender (NIT) and the applicable procurement

    procedure, leaving no scope for arbitrariness or deviation. It is

    contended that the petitioner was rightly disqualified by the duly

    constituted Pre-Qualification Committee upon objective evaluation

    of documents. The petitioner failed to satisfy the eligibility criteria,

    particularly with respect to bid capacity and proof of execution of

    works, as the documents furnished were either post bid-date or

    inadequate for verification. It is further submitted that adequate

    opportunity was granted to the petitioner to cure deficiencies, and

    his replies along with additional documents were duly considered

    in the Committee meetings dated 01.04.2026 and 08.04.2026.
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    However, the deficiencies persisted, and therefore, the decision of

    disqualification is reasoned and justified.

    9. It is contended by learned Advocate General that the evaluation of

    technical qualifications lies within the domain of expert

    committees, and the Court should exercise restraint in substituting

    its own assessment in place of that of the competent authority. It

    is further submitted that the financial bid of only the technically

    qualified bidder was opened in accordance with the tender

    conditions, and the declaration of L-1 bidder is a natural

    consequence of such evaluation.

    10. Learned Advocate General submits that the allegation of loss to

    public exchequer is misconceived, as price comparison arises

    only among technically qualified bidders. A disqualified bidder

    cannot claim consideration of its financial bid. It is contended that

    there is no violation of principles of natural justice, as the

    petitioner was duly informed of the reasons for disqualification and

    was given an opportunity to respond. With regard to subsequent

    developments, it is submitted that the tender process had

    substantially concluded upon approval by the competent authority,

    and the issuance of the order dated 27.04.2026 was merely a

    procedural consequence of such approval. It is further submitted

    that any omission in placing subsequent facts before this Court

    was bona fide and unintentional, and not with any intent to

    overreach judicial proceedings. Learned Advocate General also
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    submits that the State authorities have acted fairly, transparently,

    and in public interest, and no case of arbitrariness, mala fide, or

    discrimination is made out. In view of the above submissions, it is

    prayed that the present petition be dismissed as being devoid of

    merit.

    11. We have heard learned counsel for the parties, considered their

    rival submissions made hereinabove and also gone through the

    records with utmost circumspection.

    12. In compliance of the Court’s order dated 28.04.2026, Ms.Vidya

    Bharti, Under Secretary, Water Resources Department,

    Mantralaya, Nawa Raipur, Raipur is present in person and has

    filed her personal affidavit which states as under:-

    “1. It is submitted that, a Notice Inviting Tender (NIT) was
    issued on 06.03.2026 for construction of canal lining,
    remodelling works, and installation of various Colaba of
    Matiamoti Dam. The estimated contract value was Rs.
    2881.45 lakhs, and the stipulated period for completion of
    work was 24 months. The bid submission commenced on

    13.03.2026 and the last date for submission was
    23.03.2026.

    2. It is submitted that, bidders including the petitioner
    submitted their bids. On 24.03.2026, the Pre-Qualification
    (PQ) documents submitted by three bidders were
    downloaded and scrutinized.

    3. That, the Pre-Qualification Committee convened its
    meeting on 01.04.2026 and, upon evaluation, found that
    two out of three bidders (including the petitioner) did not
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    meet the qualification criteria. The reasons for
    disqualification were duly communicated to them on
    02.04.2026 (Annexure P-1), granting them two days to
    submit clarification/documents.

    4. It is submitted that, the petitioner submitted replies on
    04.04.2026 and 07.04.2026 along with certain documents.
    The Committee reconvened on 08.04.2026 and found
    that:

    • The documents submitted were post bid
    submission date (23.01.2026);

    • The running bills did not sufficiently disclose
    payment details to verify execution of works;

    • Hence, the petitioner remained disqualified.

    The evaluation proceedings dated 01.04.2026 and
    08.04.2026 are annexed as ANNEXURE A-1 (colly.), for
    the kind perusal of the Hon’ble Court.

    5. That, on 08.04.2026, the financial bid of the sole
    qualified bidder was opened based on the evaluation
    reports. Copy annexed as ANNEXURE A-2 for the kind
    perusal of the Hon’ble Court.

    6. It is submitted that, the bidder Shri Ram Shiromani
    Tiwari was declared L-1, and the tender file was
    forwarded to the Chief Engineer for further action.

    7. That, the Chief Engineer, Mahanadi-Godawari Basin,
    forwarded the agenda note to the Water Resources
    Department, Mahanadi Bhawan, Raipur for approval.
    Relevant documents are annexed as ANNEXURE A-3
    (colly.) for the kind perusal of the Hon’ble Court.

    8. It is submitted that, vide letter dated 22.04.2026, a
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    meeting of the Tender Evaluation Committee was
    convened on 23.04.2026, wherein the rates of the L-1
    bidder were accepted. Documents are annexed as
    ANNEXURE A-4 (colly.), for the kind perusal of the
    Hon’ble Court.

    9. That, thereafter, the matter was placed before the
    Hon’ble Chief Minister (who also holds the portfolio of
    Water Resources Department) on 23.04.2026, and
    approval was granted on 26.04.2026. Consequently, the
    Secretary incharge (as the Secretary, WRD, has been
    appointed as Observer in West Bengal Election) issued
    order dated 27.04.2026 for issuance of Letter of
    Acceptance (LoA) in favour of the successful bidder.

    10. It is submitted that, the tender approval process had
    substantially culminated upon approval accorded at the
    highest level on 23.04.2026, followed by formal
    ratification.

    11. That, the instructions earlier furnished to the office of
    the Learned Advocate General were limited to
    proceedings up to 08.04.2026. Due to an inadvertent and
    bona fide omission, subsequent developments, including
    approval by the Hon’ble Chief Minister, could not be
    communicated before the Hon’ble Court on 27.04.2026.

    12. It is submitted that, the said omission was purely
    unintentional and not actuated by any mala fide intent.
    The relevant note-sheets, being confidential, are being
    produced in a sealed cover for kind perusal.

    13. That, pursuant to the order dated 27.04.2026, an offer
    letter was issued by the Executive Engineer, WRD
    Division Balod. Execution of agreement and issuance of
    work order are contingent upon submission of requisite
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    documents, including additional performance security and
    earnest money.

    14. It is submitted that, as on date, no agreement or work
    order has been executed in favour of the successful
    bidder.

    15. That, in compliance with the Hon’ble Court’s order
    dated 28.04.2026, further proceedings have been kept in
    abeyance by the Under Secretary, Water Resources
    Department, Government of Chhattisgarh, Mantralaya,
    Mahanadi Bhawan, Naya Raipur, Atal Nagar, Raipur (CG)
    vide letter dated 28.04.2026. Copy the same is annexed
    as ANNEXURE A-5.

    16. It is submitted that, the deponent and concerned
    authorities have acted strictly in accordance with
    procedural requirements and without any intention to
    violate the orders or dignity of this Hon’ble Court.

    17. That, the order dated 27.04.2026 was issued purely as
    a procedural consequence of prior approvals of the
    Hon’ble Chief Minister/Minister of WRD, and not with any
    intent to overreach judicial proceedings.

    18. It is submitted that, the deponent holds the highest
    respect for this Hon’ble Court and submits that there was
    no deliberate or intentional act of disobedience.

    19. That, the deponent acted in her official administrative
    capacity after completion of all technical and procedural
    formalities by the Hon’ble Chief Minister/Minister WRD,
    who accorded his approval on 26.04.2026.

    20. It is submitted that, the deponent tenders
    unconditional and sincere apology for any inadvertent
    omission or act that may have appeared to be
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    inconsistent with the orders of this Hon’ble Court and
    assures utmost diligence in future.”

    13. From perusal of the record and affidavit filed by the Under

    Secretary, Water Resources Department, Mantralaya, Nawa

    Raipur, Raipur, it is evident that the tender process in question

    has been conducted in accordance with the terms and conditions

    stipulated in the NIT and the applicable procurement procedure.

    The record reflects that the petitioner’s bid was subjected to

    scrutiny by a duly constituted Pre-Qualification Committee, which

    evaluated the documents on an objective basis. The petitioner

    was found deficient in meeting the prescribed eligibility criteria,

    particularly in relation to bid capacity and proof of execution of

    works. The documents relied upon by the petitioner were either

    submitted beyond the bid date or were otherwise insufficient for

    proper verification.

    14. It further emerges that the petitioner was afforded adequate

    opportunity to rectify the deficiencies. The replies submitted by the

    petitioner, along with additional documents, were duly considered

    in the Committee meetings held on 01.04.2026 and 08.04.2026.

    Despite such consideration, the deficiencies were found to persist.

    The decision of disqualification, therefore, cannot be said to be

    arbitrary or unreasonable, but rather appears to be based on due

    application of mind.

    15. This Court is mindful of the settled principle that the evaluation of
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    technical bids lies within the domain of expert bodies, and judicial

    review in such matters is limited. In the absence of arbitrariness,

    mala fide, or procedural irregularity, this Court ought not to

    substitute its own assessment for that of the competent authority.

    16. The contention regarding alleged loss to the public exchequer is

    also found to be misconceived. Consideration of financial bids

    arises only amongst technically qualified bidders, and a

    disqualified bidder cannot claim a right to have its financial bid

    opened or compared.

    17. As regards the plea of violation of principles of natural justice, the

    record demonstrates that the petitioner was duly informed of the

    grounds of disqualification and was granted an opportunity to

    respond. Thus, no prejudice can be said to have been caused.

    18. The subsequent developments pointed out do not, in any manner,

    vitiate the tender process. The issuance of the order dated

    27.04.2026 appears to be a consequential step following approval

    by the competent authority. The omission in placing such facts

    earlier is satisfactorily explained and does not indicate any intent

    to mislead or overreach the proceedings.

    19. In view of the above, this Court is of the considered opinion that

    the actions of the respondent authorities are fair, transparent, and

    in consonance with the governing rules and public interest. No

    case of arbitrariness, mala fide, or discrimination is made out

    warranting interference under writ jurisdiction.
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    20. The reliance placed by the petitioner on the doctrine of level

    playing field and the judgments of the Hon’ble Supreme Court

    does not advance his case in the facts of the present matter, as

    the said principles operate within the framework of compliance

    with tender conditions. The petitioner having failed to meet the

    prescribed criteria cannot invoke such doctrines to seek

    interference.

    21. The scope of judicial review in contractual and tender matters is

    limited. Unless the decision-making process is shown to be arbitrary,

    irrational, mala fide or in violation of the terms of the tender,

    interference under Article 226 of the Constitution of India is not

    warranted. The Court does not sit as an appellate authority to re-

    evaluate the bids or substitute its own decision for that of the

    tendering authority.

    22. The Apex Court, in the matter of Banshidhar Construction Pvt.

    Ltd. v. Bharat Coking Coal Ltd. & Others, {Civil Appeal No.

    11005 OF 2024, decided on 04.10.2024}, taking note of the

    decisions rendered in various other celebrated judgments,

    observed as under:-

    “21. There cannot be any disagreement to the legal
    proposition propounded in catena of decisions of this
    Court relied upon by the learned counsels for the
    Respondents to the effect that the Court does not sit as a
    Court of Appeal in the matter of award of contracts and it
    merely reviews the manner in which the decision was
    made; and that the Government and its instrumentalities
    must have a freedom of entering into the contracts.
    However, it is equally well settled that the decision of the
    15

    government/ its instrumentalities must be free from
    arbitrariness and must not be affected by any bias or
    actuated by malafides. Government bodies being public
    authorities are expected to uphold fairness, equality and
    public interest even while dealing with contractual
    matters. Right to equality under Article 14 abhors
    arbitrariness. Public authorities have to ensure that no
    bias, favouritism or arbitrariness are shown during the
    bidding process and that the entire bidding process is
    carried out in absolutely transparent manner.

    22. At this juncture, we may reiterate the well-established
    tenets of law pertaining to the scope of judicial
    intervention in Government Contracts.

    23. In Sterling Computers Limited vs. M/s. M & N
    Publications Limited and Others1, this Court while
    dealing with the scope of judicial review of award of
    contracts held: –

    “18. While exercising the power of judicial review, in
    respect of contracts entered into on behalf of the
    State, the Court is concerned primarily as to whether
    there has been any infirmity in the “decision making
    process”. In this connection reference may be made
    to the case of Chief Constable of the North Wales
    Police v. Evans [(1982) 3 All ER 141] where it was
    said that: (p. 144a)
    “The purpose of judicial review is to ensure that
    the individual receives fair treatment, and not to
    ensure that the authority, after according fair
    treatment, reaches on a matter which it is
    authorised or enjoined by law to decide for itself
    a conclusion which is correct in the eyes of the
    court.”

    By way of judicial review the court cannot examine
    the details of the terms of the contract which have
    been entered into by the public bodies or the State.
    Courts have inherent limitations on the scope of any
    such enquiry. But at the same time as was said by
    the House of Lords in the aforesaid case, Chief
    Constable of the North Wales Police v. Evans
    [(1982) 3 All ER 141] the courts can certainly
    examine whether “decision-making process” was

    1 (1993) 1 SCC 445
    16

    reasonable, rational, not arbitrary and violative of
    Article 14 of the Constitution.”

    24. In Tata Cellular vs. Union of India2, this Court had
    laid down certain priniciples for the judicial review of
    administrative action.

    “94. The principles deducible from the above are:

    (1) The modern trend points to judicial restraint in
    administrative action.

    (2) The court does not sit as a court of appeal but
    merely reviews the manner in which the decision
    was made.

    (3) The court does not have the expertise to correct
    the administrative decision. If a review of the
    administrative decision is permitted it will be
    substituting its own decision, without the necessary
    expertise which itself may be fallible.
    (4) The terms of the invitation to tender cannot be
    open to judicial scrutiny because the invitation to
    tender is in the realm of contract. Normally speaking,
    the decision to accept the tender or award the
    contract is reached by process of negotiations
    through several tiers. More often than not, such
    decisions are made qualitatively by experts.
    (5) The Government must have freedom of contract.

    In other words, a fair play in the joints is a necessary
    concomitant for an administrative body functioning in
    an administrative sphere or quasi-administrative
    sphere. However, the decision must not only be
    tested by the application of Wednesbury principle of
    reasonableness (including its other facts pointed out
    above) but must be free from arbitrariness not
    affected by bias or actuated by mala fides.

    (6) Quashing decisions may impose heavy
    administrative burden on the administration and lead
    to increased and unbudgeted expenditure. Based on
    these principles we will examine the facts of this
    case since they commend to us as the correct
    principles.”

    25. It has also been held in ABL International Limited
    and Another vs. Export Credit Guarantee Corporation
    of India Limited and Others3
    , as under: –

    2 (1994) 6 SCC 651
    3 (2004) 3 SCC 553
    17

    “53. From the above, it is clear that when an
    instrumentality of the State acts contrary to public
    good and public interest, unfairly, unjustly and
    unreasonably, in its contractual, constitutional or
    statutory obligations, it really acts contrary to the
    constitutional guarantee found in Article 14 of the
    Constitution.”

    26. In Jagdish Mandal vs. State of Orissa and Others 4,
    this Court after discussing number of judgments laid
    down two tests to determine the extent of judicial
    interference in tender matters. They are: –

    “22. (i) Whether the process adopted or decision
    made by the authority is mala fide or intended to
    favour someone; or Whether the process adopted or
    decision made is so arbitrary and irrational that the
    court can say: “the decision is such that no
    responsible authority acting reasonably and in
    accordance with relevant law could have reached;”

    (ii) Whether public interest is affected. If the answers
    are in the negative, there should be no interference
    under Article 226. Cases involving blacklisting or
    imposition of penal consequences on a
    tenderer/contractor or distribution of State largesse
    (allotment of sites/shops, grant of licences,
    dealerships and franchises) stand on a different
    footing as they may require a higher degree of
    fairness in action.”

    27. In Mihan India Ltd. vs. GMR Airports Ltd. and
    Others5
    , while observing that the government contracts
    granted by the government bodies must uphold fairness,
    equality and rule of law while dealing with the contractual
    matters, it was observed in Para 50 as under: –

    “50. In view of the above, it is apparent that in
    government contracts, if granted by the government
    bodies, it is expected to uphold fairness, equality
    and rule of law while dealing with contractual
    matters. Right to equality under Article 14 of the
    Constitution of India abhors arbitrariness. The
    transparent bidding process is favoured by the Court
    to ensure that constitutional requirements are
    satisfied. It is said that the constitutional guarantee

    4 (2007) 14 SCC 517
    5 (2022) SCC OnLine SC 574
    18

    as provided under Article 14 of the Constitution of
    India demands the State to act in a fair and
    reasonable manner unless public interest demands
    otherwise. It is expedient that the degree of
    compromise of any private legitimate interest must
    correspond proportionately to the public interest.”

    28. It was sought to be submitted by the learned
    Counsels for the Respondents relying upon the
    observations made in Central Coalfields Limited and
    Another vs. SLL-SML (Joint Venture Consortium) and
    Others6
    , that whether a term of NIT is essential or not is
    a decision taken by the employer which should be
    respected. However, in the said judgment also it is
    observed that if the employer has exercised the inherent
    authority to deviate from the essential term, such
    deviation has to be made applicable to all the bidders and
    potential bidders. It was observed in Para 47 and 48 as
    under:-

    “47. The result of this discussion is that the issue of
    the acceptance or rejection of a bid or a bidder
    should be looked at not only from the point of view
    of the unsuccessful party but alsofrom the point of
    view of the employer. As held in Ramana Dayaram
    Shetty [Ramana Dayaram Shetty v. International
    Airport Authority of India
    , (1979) 3 SCC 489] the
    terms of NIT cannot be ignored as being redundant
    or superfluous. They must be given a meaning and
    the necessary significance.
    As pointed out in Tata
    Cellular [Tata Cellular v. Union of India
    , (1994) 6
    SCC 651] there must be judicial restraint in
    interfering with administrative action. Ordinarily, the
    soundness of the decision taken by the employer
    ought not to be questioned but the decision-making
    process can certainly be subject to judicial review.

    The soundness of the decision may be questioned if
    it is irrational or mala fide or intended to favour
    someone or a decision “that no responsible authority
    acting reasonably and in accordance with relevant
    law could have reached” as held in Jagdish Mandal
    [Jagdish Mandal v. State of Orissa
    , (2007) 14 SCC
    517] followed in Michigan Rubber [Michigan Rubber

    6 (2016) 8 SCC 622
    19

    (India) Ltd. v. State of Karnataka, (2012) 8 SCC
    216].

    48. Therefore, whether a term of NIT is essential or
    not is a decision taken by the employer which
    should be respected. Even if the term is essential,
    the employer has the inherent authority to deviate
    from it provided the deviation is made applicable to
    all bidders and potential bidders as held in Ramana
    Dayaram Shetty [Ramana Dayaram Shetty
    v.International Airport Authority of India, (1979) 3
    SCC 489] . However, if the term is held by the
    employer to be ancillary or subsidiary, even
    thatdecision should be respected. The lawfulness of
    that decision can be questioned on very limited
    grounds, as mentioned in the various decisions
    discussed above, but the soundness of the decision
    cannot be questioned, otherwise this Court would be
    taking over the function of the tender issuing
    authority, which it cannot.”

    23. Recently, the Apex Court in the matter of M/S. Steag Energy

    Services (India) Pvt. Ltd. v. GSPC Pipavav Power Company

    Ltd. (GPPC) & Ors. {SLP (C) No(S).30209-30210 of 2025},

    decided on 25.03.2026 held that the final choice is of the owner,

    and it is for the owner to take the final decision with necessary

    flexibility and pragmatism. While exercising judicial review of

    contractual matters, constitutional courts do not exercise, should

    not exercise ex-ante jurisdiction to pre-empt executive actions. On

    this count, High Court has exceeded the first principle of judicial

    restraint in contractual matters.

    24. Applying the well settled proposition of law to the facts of this case,

    we do not find any merit in this petition and the petitioner is not

    entitled to any relief as claimed in this petition. As such, the writ
    20

    petition is dismissed. No order as to cost.

    25. Presence of Ms.Vidya Bharti, Under Secretary, Water Resources

    Department, Mantralaya, Nawa Raipur, Raipur is discharged.

                             Sd/-                                   Sd/-
    
                            Sd Sd/-                                        Sd/-
                  (Ravindra Kumar Agrawal)                      (Ramesh Sinha)
                          Judge                                  Chief Justice
    
    
    
    
    Bablu
     



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