The Allahabad High Court’s Lucknow Bench has stayed a government tender process after finding prima facie irregularities in the disqualification of a bidder. The court flagged concerns of unfair treatment and possible bias in the evaluation stage.
Background of the Case
The matter arose from a writ petition filed by M/s Associated Jute Industries challenging a tender floated by the Uttar Pradesh Beej Vikas Nigam Limited for the supply of High Density Poly Ethylene (HDPE) woven bags.
The petitioners argued that despite meeting all eligibility criteria and submitting necessary documents-including purchase orders and a completion certificate from the National Seed Corporation Limited (NSCL)—their bid was rejected.
According to the plea, the rejection dated April 15, 2026, cited failure to upload relevant documents proving prior HDPE bag supply. A subsequent representation by the petitioners was also rejected on April 18, 2026, on similar grounds.
The petitioners alleged that the process was conducted in haste and designed to favour a particular bidder, pointing to the quick progression of financial bidding and declaration of the lowest bidder (L-1).
Senior counsel for the petitioners contended that all required documents were properly submitted and clearly demonstrated prior experience in supplying HDPE bags as per tender specifications.
On the other hand, counsel for the respondent authorities defended the decision, arguing that the documents uploaded by the petitioners related to polypropylene (PP) bags and not HDPE bags. It was further argued that the NSCL certificate did not explicitly confirm HDPE supply.
After examining the records, including purchase orders and certificates, the bench found discrepancies in the reasoning behind the disqualification.
“The rejection of the petitioners’ bid… is without any basis in law and facts,” the bench observed, noting that the documents indicated supply of HDPE bags.
The court further remarked that while tender authorities have discretion, such power is not unlimited and remains subject to judicial review.
In strong words, the bench said,
“The decision-making process… appears to be arbitrary and actuated by mala fide.”
It also highlighted that denying a fair opportunity to a qualified bidder violates the principle of a level playing field, which is a key component of fairness in public contracts.
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The division bench comprising Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary stayed the entire tender process.
The court directed that no contract shall be executed with selected bidders until further orders. It also allowed the petitioners to implead the parties declared as L-1 and sought responses from the authorities on whether the petitioners could be included in the process at this stage.
The matter has been listed for further hearing on May 14, 2026.
Case Details
Case Title: M/s Associated Jute Industries vs State of U.P. & Others
Case Number: WRIT - C No. - 4148 of 2026
Judge: Justice Shekhar B. Saraf and Justice Abdhesh Kumar Chaudhary
Decision Date: April 22, 2026
