P. Jyoti And Co., Charted Accountant vs The State Of Bihar on 22 July, 2026

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    Patna High Court

    P. Jyoti And Co., Charted Accountant vs The State Of Bihar on 22 July, 2026

    Author: Sudhir Singh

    Bench: Rajesh Kumar Verma, Sudhir Singh

              IN THE HIGH COURT OF JUDICATURE AT PATNA
                        Civil Writ Jurisdiction Case No.10081 of 2026
         ======================================================
         P. Jyoti and Co., Charted Accountant a Partnership firm, having its Regd.
         Office at 6/7, 1st floor, Dukhan Ram Plaza, Exhibition Road, Patna, through
         one of its Partner, Sri Paramjeet Singh Baghail, Aged about 36 years, Gender
         Male, Son of Subodh Singh, Resident of Ratanpur Gidhaur, Jamui, P.S.
         Gidhaur, District- Jamui, Bihar-811305.
    
                                                                     ... ... Petitioner/s
                                           Versus
    
    1.   The State of Bihar through the Principal Secretary, Education Department,
         Government of Bihar, Patna
    2.   Babasaheb Bhimrao Ambedkar University, Muzaffarpur through its Vice-
         Chancellor, Muzaffarpur, Bihar-842001
    3.   The Vice-Chancellor, Babasaheb          Bhimrao     Ambedkar      University,
         Muzaffarpur, Bihar-842001
    4.   The Registrar, Babasaheb Bhimrao Ambedkar University, Muzaffarpur,
         Bihar-842001
    5.   The Finance Officer, Babasaheb           Bhimrao    Ambedkar      University,
         Muzaffarpur, Bihar-842001
    6.   The Tender Committee through the Registrar, Babasaheb Bhimrao
         Ambedkar University, Muzaffarpur, Bihar-842001
    7.   Rishav Sinha and Co., through its Partner, Rishav Sinha, having its office
         situated at Mithapur Bus Stand (Gate No. 02), Flat No. 106, Hari Sewa
         Complex, above Brijvashi Sweets, Sri Krishnapuri, Patna - 800001
    8.   P Puneet and Co., through its Partner, Priyadarshi Puneet, having its office
         situated at 105, Pushpanjali Venkatesh Apartment, off Buddh Marg, Patna,
         Bihar - 800001.
    
                                                   ... ... Respondent/s
         ======================================================
         Appearance :
         For the Petitioner/s   :      Mr. Vishal Kumar, Advocate
                                       Mr. Amit Anand, Advocate
                                       Ms. Jaya Sonam, Advocate
                                       Ms. Somya Kumari, Advocate
                                       Mr. Bhaskar, Advocate.
         For the Respondent/s   :      Mr.Government Advocate (5)
         For the BRABU          :      Mr. Siddhartha Prasad, Advocate
                                       Mr. Sunit KUmar, Advocate.
         ======================================================
         CORAM: HONOURABLE THE ACTING CHIEF JUSTICE
                     and
                     HONOURABLE MR. JUSTICE RAJESH KUMAR VERMA
         ORAL JUDGMENT

    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
    2/16

    (Per: HONOURABLE THE ACTING CHIEF JUSTICE)

    SPONSORED

    Date : 22-07-2026

    Heard learned counsel for the parties.

    2. The petitioner has sought the following reliefs in

    the present writ petition:

    “i. For issuance of an appropriate writ, order or
    direction quashing Clause 9 contained under the
    heading “Important Instructions” at Page No. 12 of the
    Request for Proposal (RFP) forming part of Tender
    Notice No. BU/2026/02 dated 18.04.2026 issued by
    Babasaheb Bhimrao Ambedkar Bihar University,
    whereby firms having prior association with the
    respondent University, its constituent colleges or
    affiliated colleges have been arbitrarily disqualified
    from participating in the tender process;
    ii. For issuance of an appropriate writ, order or
    direction declaring the action of the respondent
    authorities in disqualifying the Petitioner Firm from the
    technical bidding process pursuant to Tender Notice
    No. BU/2026/02 dated 18.04.2026 as illegal, arbitrary,
    discriminatory and violative of Article 14 of the
    Constitution of India;

    iii. For issuance of an appropriate writ, order or
    direction commanding the respondent authorities to
    permit the Petitioner Firm to participate in the financial
    bidding process pursuant to Tender Notice No.
    BU/2026/02 dated 18.04.2026 by treating the Petitioner
    as technically qualified in accordance with the
    prescribed eligibility criteria;

    iv. For issuance of an appropriate writ, order or
    direction directing the respondent authorities to conduct
    the tender process in a fair, transparent, competitive
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    and non-discriminatory manner in consonance with
    Article 14 of the Constitution of India, Rule 173 of the
    General Financial Rules and the settled principles
    governing public procurement;

    V. For issuance of an appropriate writ, order or
    direction staying all further proceedings and
    consequential actions pursuant to Tender Notice No.
    BU/2026/02 dated 18.04.2026, including
    opening/finalization of the financial bids and award of
    contract, during the pendency of the present writ
    petition;

    vi. For issuance of any other writ, order or direction
    which this Hon’ble Court may deem fit and proper in
    the facts and circumstances of the present case in the
    interest of justice, equity and fair play.

    3. The present writ petition has been filed challenging

    Clause 9 under the heading “Important Instructions” contained

    in the Request for Proposal (RFP) forming part of Tender Notice

    No. BU/2026/02 dated 18.04.2026 issued by Babasaheb

    Bhimrao Ambedkar Bihar University, Muzaffarpur, for

    appointment of Chartered Accountant Firms to provide

    Financial Management and Technical Support Services to the

    University, its constituent colleges and affiliated colleges.

    4. The petitioner claims to be a Chartered Accountant

    Firm possessing the requisite eligibility, infrastructure, technical

    expertise and experience for execution of the work under the

    RFP and states that it had previously rendered professional
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    services to the respondent University and its affiliated

    institutions.

    5. It is the petitioner’s case that an earlier tender

    bearing Tender Notice No. BU/2025/07 dated 06.12.2025 had

    been issued by the respondent University for the same nature of

    services. The petitioner participated therein, its bid was

    accepted, and it was declared the lowest (L-1) bidder after

    technical evaluation. However, the said tender process was not

    taken to its logical conclusion and no work order was issued.

    6. Thereafter, the respondent University issued the

    impugned Tender Notice No. BU/2026/02 dated 18.04.2026

    incorporating Clause 9 under the “Important Instructions”. The

    petitioner, while objecting to the said condition, nevertheless

    participated in the tender process by submitting its bid along

    with the requisite Earnest Money Deposit.

    7. According to the petitioner, its technical bid was

    rejected solely on the ground that it had previously rendered

    professional services to colleges affiliated with Babasaheb

    Bhimrao Ambedkar Bihar University, thereby attracting the

    disqualification contained in Clause 9 of the RFP.

    8. Learned counsel for the petitioner submits that

    Clause 9 of the impugned RFP is manifestly arbitrary,
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    unreasonable and violative of Article 14 of the Constitution of

    India as it disqualifies otherwise eligible Chartered Accountant

    Firms solely on the ground of their prior professional

    association with the respondent University. It is submitted that

    the impugned condition bears no rational nexus with the object

    of the tender and, instead of treating prior experience with the

    University as an advantage, penalizes such experience. It is

    further submitted that the petitioner satisfies all the prescribed

    eligibility criteria and has been declared technically disqualified

    only on account of the impugned clause. Reliance has been

    placed on Rule 173 of the General Financial Rules and the

    decisions of the Hon’ble Supreme Court in BLT EPC Ltd. v.

    Macawber Beekay Pvt. Ltd. reported in (2024) 12 SCC 614 and

    Meerut Development Authority v. Association of Management

    Studies reported in (2009) 6 SCC 171 to contend that tender

    conditions must be fair, transparent, non-arbitrary and cannot be

    tailor-made to exclude a particular class of bidders.

    9. Per contra, learned counsel appearing for the

    respondent University submits that the petitioner, having

    participated in the tender process with full knowledge of the

    tender conditions, cannot subsequently challenge the same after

    being declared technically disqualified. Accordingly, it is urged
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    that no interference is warranted.

    10. The following issues arise for consideration before

    this Court:

    (i) Whether the petitioner, having participated in the

    tender process with full knowledge of Clause 9 of the Request

    for Proposal (RFP), can subsequently challenge the validity of

    the said tender condition after being declared technically

    disqualified?

    (ii) Whether Clause 9 of the RFP, which disqualifies

    bidders having prior association with Babasaheb Bhimrao

    Ambedkar Bihar University, its constituent colleges or affiliated

    colleges, is so arbitrary, irrational or violative of Article 14 of

    the Constitution of India as to warrant interference by this Court

    in exercise of its power of judicial review under Article 226 of

    the Constitution?

    Re.: Issue No. (i)

    11. It is not in dispute that Clause 9 formed an integral

    part of the Request for Proposal (RFP) issued under Tender

    Notice No. BU/2026/02 dated 18.04.2026. The petitioner was

    fully aware of the said condition prior to submission of its bid.

    Despite such knowledge, the petitioner consciously chose to

    participate in the tender process by submitting its bid along with
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    the requisite Earnest Money Deposit. It is only after the

    petitioner’s bid was declared technically disqualified by

    application of the very same clause that the present writ petition

    came to be instituted challenging its validity.

    12. The conduct of the petitioner, therefore, assumes

    significance. A bidder who, with full knowledge of the terms

    and conditions governing the tender, voluntarily participates in

    the process and takes a calculated chance of being selected

    cannot, upon an unfavourable outcome, turn around and assail

    those very conditions. Such a course of action is contrary to the

    well-settled doctrine of approbation and reprobation, which

    prohibits a litigant from accepting and rejecting the same

    transaction at different stages according to convenience.

    13. The Hon’ble Supreme Court in Madan Lal v.

    State of Jammu & Kashmir reported in (1995) 3 SCC 486,

    while dealing with an analogous situation, held that where a

    candidate takes a calculated chance by participating in a

    selection process and thereafter finds the result to be

    unfavourable, he cannot subsequently challenge the procedure

    adopted. The Court observed that a candidate who consciously

    participates in the process cannot be permitted to question it

    only because the result has gone against him. The relevant para
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    of the said order reads as follows:

    “9. Before dealing with this contention, we must keep
    in view the salient fact that the petitioners as well as
    the contesting successful candidates being
    respondents concerned herein, were all found eligible
    in the light of marks obtained in the written test, to be
    eligible to be called for oral interview. Up to this
    stage there is no dispute between the parties. The
    petitioners also appeared at the oral interview
    conducted by the Members concerned of the
    Commission who interviewed the petitioners as well
    as the contesting respondents concerned. Thus the
    petitioners took a chance to get themselves selected
    at the said oral interview. Only because they did not
    find themselves to have emerged successful as a
    result of their combined performance both at written
    test and oral interview, they have filed this petition. It
    is now well settled that if a candidate takes a
    calculated chance and appears at the interview, then,
    only because the result of the interview is not
    palatable to him, he cannot turn round and
    subsequently contend that the process of interview
    was unfair or the Selection Committee was not
    properly constituted. In the case of Om Prakash
    Shukla v. Akhilesh Kumar Shukla
    it has been clearly
    laid down by a Bench of three learned Judges of this
    Court that when the petitioner appeared at the
    examination without protest and when he found that
    he would not succeed in examination he filed a
    petition challenging the said examination, the High
    Court should not have granted any relief to such a
    petitioner.”

    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    14. The principle is founded on equity and fair play.

    Judicial review under Article 226 is a discretionary and

    equitable jurisdiction. A litigant who voluntarily accepts the

    terms of a tender, participates therein without protest and seeks

    to secure the benefit flowing therefrom cannot be permitted to

    “blow hot and cold”, or “approbate and reprobate”, by

    challenging the very condition upon the failure of his bid.

    Acceptance of such a course would render every unsuccessful

    bidder entitled to question tender conditions after the result is

    declared, thereby unsettling public procurement processes and

    undermining certainty in contractual matters.

    15. In the present case, the petitioner was aware of

    Clause 9 at the time the RFP was issued. Despite asserting that

    the clause was arbitrary, the petitioner nevertheless elected to

    participate in the tender process without seeking any pre-bid

    clarification or appropriate relief before submission of its bid.

    Having consciously taken a chance of success under the terms

    of the tender, the petitioner cannot now be permitted to assail

    the very condition on the basis of which its bid came to be

    evaluated merely because the outcome has been unfavourable.

    16. Accordingly, Issue No. (i) is answered against the

    petitioner.

    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    Re.: Issue No. (ii)

    17. Before adverting to the rival submissions, it would

    be apposite to reproduce Clause 9 of the “Important

    Instructions” contained in the RFP, which reads as under:

    “9. The bidder must not be associated with B.R.A.
    Bihar University or any constituent college of
    B.R.A.Bihar University or any affiliated college of
    B.R.A.Bihar University for any work in past. A
    deceleration in this regard to be submitted.”

    18. The principal challenge of the petitioner is that the

    aforesaid condition is arbitrary and discriminatory as it excludes

    firms having prior association with the respondent University.

    This Court, however, is unable to accept the said contention.

    19. It is trite that the author of the tender is the best

    judge of its requirements. The formulation of eligibility

    conditions and qualification criteria falls within the realm of

    administrative and commercial policy of the procuring entity.

    Unless such conditions are shown to be manifestly arbitrary,

    mala fide, tailor-made to favour or exclude a particular bidder,

    or wholly devoid of any rational nexus with the object sought to

    be achieved, the scope of judicial review remains extremely

    limited.

    20. The Hon’ble Supreme Court in Michigan Rubber
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    (India) Ltd. v. State of Karnataka reported in (2012) 8 SCC

    216, held that fixation of eligibility criteria lies primarily within

    the domain of the tendering authority and the Court does not sit

    as an appellate authority over such decisions. Interference is

    warranted only where the process is found to be mala fide,

    arbitrary or intended to favour a particular party. The relevant

    para of the said order reads as follows:

    “23. From the above decisions, the following
    principles emerge:

    (a) The basic requirement of Article 14 is fairness in
    action by the State, and non-arbitrariness in essence
    and substance is the heartbeat of fair play. These
    actions are amenable to the judicial review only to
    the extent that the State must act validly for a
    discernible reason and not whimsically for any
    ulterior purpose. If the State acts within the bounds
    of reasonableness, it would be legitimate to take into
    consideration the national priorities;

    (b) Fixation of a value of the tender is entirely within
    the purview of the executive and the courts hardly
    have any role to play in this process except for
    striking down such action of the executive as is
    proved to be arbitrary or unreasonable. If the
    Government acts in conformity with certain healthy
    standards and norms such as awarding of contracts
    by inviting tenders, in those circumstances, the
    interference by courts is very limited;

    (c) In the matter of formulating conditions of a
    tender document and awarding a contract, greater
    latitude is required to be conceded to the State
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    authorities unless the action of the tendering
    authority is found to be malicious and a misuse of its
    statutory powers, interference by courts is not
    warranted;

    (d) Certain preconditions or qualifications for
    tenders have to be laid down to ensure that the
    contractor has the capacity and the resources to
    successfully execute the work; and

    (e) If the State or its instrumentalities act reasonably,
    fairly and in public interest in awarding contract,
    here again, interference by court is very restrictive
    since no person can claim a fundamental right to
    carry on business with the Government.

    24. Therefore, a court before interfering in tender or
    contractual matters, in exercise of power of judicial
    review, should pose to itself the following questions:

    (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”? And

    (ii) Whether the public interest is affected?

    If the answers to the above questions are in the
    negative, then there should be no interference under
    Article 226.”

    21. The same principle has been reiterated in N.G.

    Projects Ltd. v. Vinod Kumar Jain reported in (2022) 6 SCC

    127, wherein the Hon’ble Supreme Court observed that
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    constitutional courts ought to exercise great restraint in matters

    concerning public tenders and should not substitute their own

    views for that of the tendering authority merely because another

    view is possible. The relevant para of the said order reads as

    follows:

    “23. In view of the above judgments of this Court,
    the writ court should refrain itself from imposing its
    decision over the decision of the employer as to
    whether or not to accept the bid of a tenderer. The
    Court does not have the expertise to examine the
    terms and conditions of the present day economic
    activities of the State and this limitation should be
    kept in view. Courts should be even more reluctant in
    interfering with contracts involving technical issues
    as there is a requirement of the necessary expertise
    to adjudicate upon such issues. The approach of the
    Court should be not to find fault with magnifying
    glass in its hands, rather the Court should examine
    as to whether the decision-making process is after
    complying with the procedure contemplated by the
    tender conditions. If the Court finds that there is
    total arbitrariness or that the tender has been
    granted in a mala fide manner, still the Court should
    refrain from interfering in the grant of tender but
    instead relegate the parties to seek damages for the
    wrongful exclusion rather than to injunct the
    execution of the contract. The injunction or
    interference in the tender leads to additional costs on
    the State and is also against public interest.
    Therefore, the State and its citizens suffer twice,
    firstly by paying escalation costs and secondly, by
    being deprived of the infrastructure for which the
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    present day Governments are expected to work.”

    22. Recently, in BLT EPC Ltd. v. Macawber Beekay

    Pvt. Ltd. reported in (2024) 12 SCC 614, the Hon’ble Supreme

    Court, reaffirmed that even where the procuring entity is

    “State” within the meaning of Article 12 of the Constitution,

    judicial review in contractual matters is confined to examining

    arbitrariness, mala fides, bias or irrationality and not the

    commercial wisdom underlying the tender conditions. The

    relevant para of the said order reads as follows:

    “35. It is settled law that in contracts involving
    complex technical issues, the Court should exercise
    restraint in exercising the power of judicial review.
    Even if a party to the contract is “State” within the
    meaning of Article 12 of the Constitution, and as
    such, is amenable to the writ jurisdiction of the High
    Court or the Supreme Court, the Court should not
    readily interfere in commercial or contractual
    matters. This principle has been reiterated in a
    recent judgment of this Court. J.B. Pardiwala, J.,
    speaking for the Bench in Tata Motors Ltd. v. Brihan
    Mumbai Electric Supply & Transport
    Undertaking
    …”

    23. Tested on the aforesaid principles, Clause 9 cannot

    be said to be ex facie arbitrary or irrational. The respondent

    University has prescribed a uniform condition applicable to

    every intending bidder. The clause is neither confined to the
    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    petitioner nor has any material been brought on record to

    demonstrate that it was incorporated with the object of

    favouring any identified bidder or excluding the petitioner

    alone. The condition has an intelligible basis, namely, to ensure

    that the Chartered Accountant Firm engaged for providing

    financial management and technical support services is free

    from any prior association with the University or its constituent

    or affiliated colleges, thereby maintaining institutional

    independence and avoiding any actual or perceived conflict of

    interest. Whether such a policy is the most appropriate or

    whether a less restrictive alternative could have been adopted

    are matters falling within the domain of the tendering authority

    and not for judicial determination in exercise of powers under

    Article 226 of the Constitution.

    24. The petitioner’s contention that prior association

    ought to have been treated as an advantage rather than a

    disqualification essentially invites this Court to substitute its

    own view for that of the procuring authority. Such an exercise is

    impermissible in judicial review. So long as the condition is

    founded upon a discernible rationale and applies uniformly to

    all prospective bidders, the Court cannot invalidate it merely

    because another policy choice may also have been reasonable.

    Patna High Court CWJC No.10081 of 2026 dt.22-07-2026
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    25. Accordingly, Issue No. (ii) is also answered

    against the petitioner.

    26. In view of the findings recorded on Issue Nos. I

    and II, this Court finds no merit in the present writ petition.

    27. Accordingly, the present writ petition stands

    dismissed.

    28. Interlocutory application(s), if any, shall also stand

    disposed of.

    (Sudhir Singh, ACJ)

    (Rajesh Kumar Verma, J)
    Sujit/-

    AFR/NAFR                AFR
    CAV DATE                NA
    Uploading Date          29.07.2026
    Transmission Date       NA
     



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