Bombay High Court Dismisses Petition Challenging E-Auction Result for Gold Mining Licence Due to Lack of Evidence of Technical Glitch. Petitioner failed to prove portal malfunction prevented bid submission; declaration of preferred bidder upheld.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Kundan Gold Mines Private Limited, challenged a notice dated 12.12.2025 issued by the Director General, Directorate of Geology and Mining, Maharashtra, declaring respondent No. 3 as the preferred bidder for a composite licence for the Bhimsain Killa Gold Block. The petitioner sought a direction to resume the second round of e-auction from the stage it was allegedly interrupted on 11.12.2025 due to technical glitches. The petitioner argued that during the eight-minute window for final price revision, the portal became unresponsive and failed to accept its revised bid, while respondent No. 3's bid was accepted. The court examined the submissions and noted that the petitioner did not produce any contemporaneous evidence such as screenshots, system logs, or complaints to the auction portal to prove the technical glitch. The court also observed that the petitioner had successfully participated in earlier rounds without issue. The court held that the burden to prove the glitch lay on the petitioner, which was not discharged. Consequently, the court dismissed the petition, finding no merit in the allegations and no grounds to interfere with the auction process.

Headnote

A) Mining Law - E-Auction Process - Technical Glitch - Burden of Proof - Petitioner alleged technical glitch prevented bid submission - Court held that petitioner failed to produce any contemporaneous evidence such as screenshots or system logs to substantiate the glitch - Held that mere assertion without proof is insufficient to invalidate the auction process (Paras 5-7).

B) Administrative Law - Judicial Review - Tender/Auction Matters - Scope of Interference - Court reiterated that in contractual matters, the court's role is limited to examining whether the process is arbitrary, discriminatory, or mala fide - Held that no such infirmity was established in the present case (Para 8).

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Issue of Consideration

Whether the petitioner was denied a fair opportunity to participate in the e-auction due to a technical glitch, and whether the impugned notice declaring respondent No. 3 as preferred bidder is liable to be set aside.

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Final Decision

The petition is dismissed. The impugned notice dated 12.12.2025 declaring respondent No. 3 as preferred bidder is upheld. No order as to costs.

Law Points

  • E-auction process
  • technical glitch
  • burden of proof
  • judicial review of administrative decisions
  • composite licence grant
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Case Details

2026 LawText (BOM) (05) 65

Writ Petition No. 8249 of 2025

2026-05-06

Anil S. Kilor, Raj D. Wakode

Mr. J.T. Gilda, Senior Advocate i/b. Mr. A.J. Gilda for Petitioner; Mr. N.S. Rao, AGP for Respondent No.1; Mr. H.D. Dangre with Mr. Sarabjeet Singh Saddal for Respondent No.2; Mr. Akshay A. Naik, Senior Advocate i/b. Mr. Y.N. Sambre and Mr. Mayank Jain for Respondent No.3

Kundan Gold Mines Private Limited

State of Maharashtra, MSTC Limited, Auro Infra Private Limited

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Nature of Litigation

Writ petition challenging administrative decision in e-auction for grant of composite licence for gold mining block.

Remedy Sought

Petitioner sought quashing of notice declaring respondent No. 3 as preferred bidder and direction to resume e-auction from the point of alleged technical glitch.

Filing Reason

Petitioner alleged that a technical glitch in the e-auction portal prevented it from submitting a revised final price offer, leading to respondent No. 3 being declared preferred bidder.

Previous Decisions

Respondent No. 1 issued notice dated 12.12.2025 declaring respondent No. 3 as preferred bidder.

Issues

Whether the petitioner was denied fair opportunity to participate in e-auction due to technical glitch? Whether the impugned notice declaring respondent No. 3 as preferred bidder is liable to be set aside?

Submissions/Arguments

Petitioner argued that technical glitch prevented bid submission within eight-minute window; portal unresponsive despite clicking BID button. Respondents contended that no glitch occurred; petitioner failed to provide evidence; auction process was fair.

Ratio Decidendi

The burden of proving a technical glitch in an e-auction lies on the party alleging it; mere assertions without contemporaneous evidence such as screenshots or system logs are insufficient to invalidate the auction process.

Judgment Excerpts

The petitioner has approached this Court seeking challenge to the impugned notice dated 12.12.2025... Mr. J.T. Gilda... vehemently argued that the petitioner was denied the opportunity to fully and effectively participate... We have considered the submissions... and perused the record.

Procedural History

Petitioner filed Writ Petition No. 8249 of 2025 before the Bombay High Court, Nagpur Bench, challenging the notice dated 12.12.2025. The court heard the matter on 6th May 2026 and dismissed the petition.

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High Court Bombay High Court Dismisses Petition Challenging E-Auction Result for Gold Mining Licence Due to Lack of Evidence of Technical Glitch. Petitioner failed to prove portal malfunction prevented bid submission; declaration of preferred bidder upheld.
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