High Court Upholds Disqualification of Tender Bidder Due to Non-Compliance with Tender Conditions. Disqualification Found Arbitrary as No Opportunity to Rectify Defect Was Provided.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The dispute arose from a tender process initiated by the TAPI Irrigation Development Corporation for the construction of a gravity closed pipeline distribution system. The petitioner, a joint venture, applied for the tender but was disqualified for failing to upload a bank statement, despite having made the necessary payment for the Earnest Money Deposit (EMD). The petitioner challenged this disqualification under Article 226 of the Constitution of India, arguing that the tender conditions did not explicitly require a bank statement and that the rejection was arbitrary. The court noted that the petitioner was not given an opportunity to rectify the omission and that the tender notice did not clearly mandate the bank statement upload. The respondents contended that the tender documents specified the requirement and that the petitioner was informed of the consequences of non-compliance. The court found that the disqualification was unreasonable and violated the principles of natural justice, leading to the decision to quash the disqualification and allow the petitioner to rectify the defect. The judgment was pronounced on 5th October 2026.

Headnote

A) Constitutional Law - Article 226 - Judicial Review of Tender Disqualification - The court examined the legality of the petitioner's disqualification from a public tender due to non-uploading of a bank statement, which was not explicitly required by the tender notice. The court held that the disqualification was arbitrary and violated principles of natural justice as the petitioner was not given an opportunity to rectify the defect (Paras 2-8).

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Issue of Consideration

Whether the disqualification of the petitioner from the tender process was justified and whether principles of natural justice were violated.

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Final Decision

The court quashed the disqualification of the petitioner and allowed them to rectify the defect regarding the bank statement upload.

Law Points

  • Article 226 of the Constitution of India
  • principles of natural justice
  • tender conditions
  • disqualification of bidders
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Case Details

2026 LawText (BOM) (10) 89

WP-9698 of 2026

2026-10-05

Jitendra Jain, Kishore C. Sant

Mr. V. D. Salunke, Mr. N. S. Tekale, Mr. R. N. Dhorde, Mr. A. I. Deshmukh

M/s. Pragati Construction, Latur & M/s. R. B. Krishnani, Pune, Joint Venture

State of Maharashtra and others

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Nature of Litigation

Challenge to disqualification from a public tender process

Remedy Sought

Quashing of disqualification and permission to rectify defect

Filing Reason

Disqualification due to non-uploading of bank statement

Issues

Validity of disqualification from tender process Violation of principles of natural justice

Submissions/Arguments

Tender conditions did not require bank statement upload Respondents maintained that non-uploading rendered bids non-responsive

Ratio Decidendi

The court emphasized that disqualification must be based on clear and explicit conditions, and failure to provide an opportunity to rectify defects violates principles of natural justice.

Judgment Excerpts

Rule made returnable forthwith. By consent, heard finally. The reason for petitioner’s disqualification... is its failure to upload bank statement as mandated by Point no.25 of Volume – I of Detailed Tender Notice. The petitioner being aggrieved by its disqualification has instituted the present petition on 7 August 2026.

Procedural History

The petition was filed on 7 August 2026, and the court directed respondents not to finalize the tender process without prior permission. The matter was heard finally on 5 October 2026.

Acts & Sections

  • Constitution of India: Article 226
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