The Kerala High Court on Wednesday declined to halt a tender process challenged by a Thrissur-based co-operative bank, allowing the authorities to move ahead with the bidding procedure. However, the court put a rider: no final agreement should be signed without first placing the bid details before it.
The order was passed by Justice Gopinath P. while considering a writ petition filed by Kallettumkara Service Co-Operative Bank Ltd.
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Background of the Case
The petition was filed by Kallettumkara Service Co-Operative Bank Ltd. No.141, represented by its Managing Committee President, N.K. Joseph. The bank approached the High Court seeking an interim stay on further proceedings related to a Request for Proposal (RFP) dated November 3, 2025 (Exhibit P6).
The respondents in the case include the Union of India, the State of Kerala, the Secretary to Government (Co-operation Department), and the Registrar of Co-operative Societies.
The bank requested the court to stay all further steps taken pursuant to the RFP until the writ petition was finally decided.
When the matter came up for admission, senior counsel George Poonthottam appeared for the petitioner. The Union and State were represented by their respective government law officers.
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What Happened in Court
The hearing was brief but intense. After listening to arguments from both sides, Justice Gopinath P. also examined files produced by the State in a sealed cover.
In the order, the judge recorded that he was “prima facie not inclined to stay the further proceedings pursuant to the impugned orders.”
The term prima facie means that, at first glance, the court did not find sufficient grounds to grant an immediate stay.
The court then made it clear that respondents 2, 3, and 4 - namely the State authorities - are permitted to continue with the tender process and even award the work to the successful bidder.
However, the judge added an important safeguard. Before entering into any final agreement, the details of the selected bid must be placed before the court.
The sealed files submitted by the State were returned to the Special Government Pleader in a sealed cover after the hearing.
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Court’s Observation
While the order is short, it signals the court’s reluctance to interfere at the interim stage in tender matters unless strong grounds are shown.
By allowing the tender process to continue but withholding final contractual execution without court oversight, the bench appears to have struck a balance between administrative functioning and judicial scrutiny.
As noted in the order, “Respondents 2, 3 and 4 are permitted to proceed with the tender process and also to award the work to the successful bidder. However, before entering into the agreement, the details of the bid shall be placed before this Court.”
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The Decision
The writ petition has been admitted for further consideration. No interim stay has been granted on the RFP proceedings.
State authorities may proceed with the tender process and even complete the selection of a successful bidder. However, execution of the final agreement will require the court’s prior review of bid details.
The matter will now proceed for further hearing.
Case Title: Kallettumkara Service Co-Operative Bank Ltd. v. Union of India & Ors.
Case No.: WP(C) No. 1603 of 2026
Decision Date: February 18, 2026
