As per case facts, the petitioner, a joint venture, challenged the technical rejection of its bid for a pollution abatement and conservation project. The petitioner alleged that the eligibility criteria, ...
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HIGH COURT OF JAMMU & KASHMIR AND LADAKH
AT JAMMU
WP(C) No.3399/2025
Reserved on: 14.05.2026
Pronounced on: 30.05.2026
Uploaded on: 30.05.2026
M/s RKG LNA IPL JV ….Petitioner(s)
Through :- Mr. Rahul Pant, Sr. Advocate with
Ms/ Amit Bhardwaj & Anirudh Sharma,
Advocates
V/s
Union Territory of J&K and others ….Respondent(s)
Through :- Mr. Raman Sharma, AAG with
Ms. Saliqa Sheikh, Advocate
Mr. R.K.Gupta, Sr. Advocate with
Mr. Udhay Bhaskar, Advocate
CORAM:
HON’BLE MS.JUSTICE MOKSHA KHAJURIA KAZM I, JUDGE
JUDGMENT
1. By this petition, the petitioner herein has sought quashing of the
decision dated 20.11.2025, taken by the respondent, whereby the bid
submitted by the petitioner in pursuance of e-NIT No.22 of 2025-26
dated 27.09.2025 for the work “Pollution Abatement and Conservation
of River Jhelum at Chuntkul and Gawakadal area in Srinagar (J&K)”
under NRCP including 12 months of free trial run and 05 years of
O&M after free trial run, has been technically rejected/declared non-
responsive. Petitioner is also seeking a direction upon the respondents
to declare its bid as responsive technically, to open the financial bid
WP(C) No.3399/2025 2
and to award the contract in question to L-1 after opening the financial
bid of the petitioner as well.
Factual Matrix
2. The petitioner is a joint venture of M/s LNA Infra Projects Pvt. Ltd., a
company duly incorporated under the Companies Act. M/s R.K.Gupta
& Co. is a registered partnership firm having its registered office at
H.No.50-B, Sector-A, Subash Nagar, Jammu.
3. E-NIT No.22 of 2025-26 dated 27.09.2025 came to be issued by
respondent No.3-Executive Engineer, S&D Division 1
st
Urban
Environmental Engineering Department, Srinagar, thereby inviting
bids/tenders comprising of two covers A&B from the eligible bidders
for “Pollution Abatement and Conservation of River Jhelum at
Chuntakul and Gawkadal areas in Srinagar (J&K)” under NRCP
including 12 months of free trial run and 5 years of O&M after free
trial run. The estimate cost of the work was shown to be Rs.55.11
crores and estimated cost of operation and maintenance (O&M) was
indicated as Rs.6.45 crores. Thus, total estimate cost of the project was
Rs.61.56 crores. To be eligible to participate in the bidding process,
bidder was required to be a registered company/firm/super class
contract in terms of standing rules and renewed for the current financial
year 2025-26 . Even Joint Ventures were eligible to apply for the work
in question. In terms of the e-NIT, following was the eligibility criteria
fixed in the e-NIT:
“2. ELIGIBILITY CRITERIA FOR BIDDERS
Qualifying Requirement:
WP(C) No.3399/2025 3
I. Should be registered company under Companies
Act/partnership/proprietor firm/LLP/JV etc with registered office in
India.
II. Construction Experience
A. In case Bidder is applying as Single Entity/Individual
contractors—
i. General Construction Experience
Successfully completed similar works during last Ten years ending last day
of month previous to the one in which applications are invited should be
either of the following: --
a) Three similar completed works/Projects where cost of Project is not
less than the amount equal to 40% of Estimate Capital cost.
OR
b) Two similar completed works/Projects of similar nature where cost
of project is not less than the amount equal to 50% of Estimate Capital cost.
OR
c) One similar completed project where cost of project is not less than
the amount equal to 80% of Estimated Capital cost.
Similar Nature of Work Means- Construction of Sewerage Treatment Plant
of capacity not less than 2.5 MLD along with laying of Sewer Network of
length not less than 7.5 KM.
ii. Personal capabilities i.e. List of Manpower as per Annx Manpower
ii. Equipment capabilities i.e. List of Equipment as per Annx
Equipment
iv. Key production rates i.e. Bid Capacity as described below.
B. In case Bidder is applying as Joint Venture-Pre-qualification of JV
i. Each of the JV partner (Except Lead bidder) should individually
possess:-
Experience of successfully execution of a STP along with laying of
Sewer Network where the cost of project is at least 25% of
Estimated Capital Cost of the project put to tender.
ii. JV members are “jointly and severally responsible and liable” in a
contract. For prequalification, the JV should fulfill the criteria
specified above. The attributes to be evaluated will be the same as
for Single Entity/individual contractor; however, certain parameters
up to the specified limits have to be essentially met by them
collectively, some by the lead partner, and some by the other
partner, as briefly described below:”
WP(C) No.3399/2025 4
4. The bidding documents had to be downloaded by 27
th
September,
2025, submission of bids starts on 27.09.2025 from 5.00 pm and the
bid submission end date was 20.10.2025 upto 4 pm. The petitioner
being fully eligible as a joint venture in M/s LNA Infra Projects Pvt.
Ltd. was incorporated as a lead partner whereas M/s R.K.Gupta & Co
was second partner, submitted its bid. It is stated that with a view to
oust the competitors from bidding process and to favour some blue-
eyed persons, a corrigendum came to be issued on 27.10.2025 i.e. the
last date of submission of tender thereby extending the last date of
submission of bid upto 31.10.2025 upto 2 pm. The requirement of
experience was also changed from ten years to seven years. According
to the petitioner, this decision was taken on 27.10.2025 at about 3.00
pm whereas the petitioner had submitted its bid prior to that. It is
alleged that the same was done with the oblique motives to ensure that
other bidders including the petitioner could be ousted from the bidding
process.
5. It is stated that the official respondents have deliberately changed the
criteria at the eleventh hour in order to ensure that the petitioner is
ousted from the bidding process, unaware of the fact that the petitioner
is otherwise eligible in terms of the second experience certificate of
M/s R.K.Gupta and Co., which had been uploaded along with the bid.
WP(C) No.3399/2025 5
The petitioner is stated to have requested respondent No.2 for
restoration of the original qualification criteria vide communication
dated 28.10.2025. Reliance has been placed on similar NITs for the
similar nature of works, wherein, the bidders were required to have
executed the similar works during the last seven years, which
subsequently came to be changed to ten years by way of corrigendum.
6. The Joint Venture had submitted its bid along with requisite
experience. So far as lead partner M/s LNA Infra Projects Pvt. Ltd. is
concerned, it has the eligibility as it had the requisite experience during
the last seven years. Similarly, the other partner in the Joint Venture
i.e. M/s R.K.Gupta & Co. too had the experience. The experience
certificate dated 06.06.2018, uploaded by the Joint Venture, had been
issued by the Executive Engineer, Sewerage & Drainage Division
(West), Jammu for successfully completion of the work “Designing,
Providing, Constructing, Ere ting, Commissioning start-up of 4.00
MLD capacities Sewerage Treatment Plant (STP) on Sequential Batch
reactor (SBR) technology including laying of Trunk Sewerage laterals
& House chamber/connections complete Sewerage Scheme for Migrant
Towanship Jagti at Nagrota, Jammu.”
7. Alongwith its bid, the petitioner has also uploaded experience
certificate issued in favour of M/s R.K. Gupta & Co. for successfully
completing the work namely “Pollution abatement of River Devika and
Tawi at Udhampur Town (J&K) under NRCP, GOI (Sewerage
Package) amounting to Rs.1760 lacs” as sub-contractor of M/s BGCC
Pvt. Ltd. New Delhi.
WP(C) No.3399/2025 6
8. The petitioner was issued notice on 17.11.2025 to explain its position
on the ground that earlier the petitioner was issued a show cause
because as per the official respondents, the principal contractor BJCC
has stated that the scope of work, which was sub-contracted to M/s
R.K.Gupta & Co. was extra-ordinary declared and was never
completed in full for which ten percent liquidated damages have been
imposed on the sub-contractor. The show cause notice was replied
stating therein that the documents furnished by the petitioner are
genuine,, true and duly certified by concerned authority, hence cannot
be disregarded. Subsequently, the petitioner has been declared as
technically non-responsive/disqualified on the basis of the minutes of
meeting held on 20.11.2025, which action of the official respondents
has been impugned in this writ petition.
9. It has been argued by the learned senior counsel appearing for the
petitioners that the whole exercise to change the criteria has been done
to oust the petitioner from the competition; technical bid of the
petitioner has been declared non-responsive just to favour respondent
No.5.
10. Per contra, in the reply filed by the official respondents, it is stated that
in the two e-NITs, on which reliance has been placed by the petitioner,
experience had been increased from seven years to ten years, on the
specific relaxation granted by the Empowered Contract Committee
(ECC). It is further stated that due to an inadvertent oversight, said
relaxation was erroneously carried forwarded in the subject e-NIT,
which discrepancy was timely identified and rectified through
WP(C) No.3399/2025 7
corrigendum dated 27.10.2025, restoring the experience criteria to
seven years strictly in terms of the provisions of the Manual of
Procurement of Works-2022.
11. According to the official respondents, the petitioner has submitted his
bid only on 30.10.2025 i.e. after the issuance of corrigendum and
subsequently modified the bid on 06.11.2025. The allegation of the
petitioner that the change in eligibility criteria was carried to favour
some blue-eyed and to oust the petitioner has been specifically denied.
Insofar as the experience certificate relied upon by the petitioner is
concerned, it is stated that even if the experience certificate of M/s
R.K.Gupta & Co for work of STP at Jagti executed as a Joint Venture
for an amount of Rs.12.25 crores with 74% share is considered, the
petitioner would still not satisfy the eligibility criteria because 74% of
Rs.12.25 crores comes to Rs.9.06 crores. It is stated that even after
escalating the cost to present level values by applying 7% annual
enhancement, the escalated amount comes to Rs.13.51 crores.
However, as per the qualification criteria, each partner of Joint Venture
must independently possess experience of 25% of the estimated project
cost. The project cost of tendered work is 55.11 crores, of which 25%
comes to Rs.13.78 crores, it is stated, even on merits even if the
certificate of 2018 is taken into account, the petitioner still falls short of
mandatory experience of completing 25% value of the contract. With
regards to the purported experience of Rs. 17.60 crores, the official
respondents have specifically denied that that the said amount
represents a single work and while evaluating the completion
WP(C) No.3399/2025 8
certificates of the petitioner, it was verified from the issuing authority
that the work “Pollution Abatement of River Devika and Tawi at
Udhampur” were comprised of two different work orders issued by two
different Chief Engineers. Both the principal contractor and the issuing
authority have been asked for the portion of work they have executed.
From the principal contractor, it was found that the petitioner has
completed only 60-70% of 4 MLD STP work whereas integral part i.e.
design of STP was framed by BGCC-principal contractor and from the
issuing authority it was found that the firm has executed 91% of work.
12. It is stated that after verification from both from Principal Contractor
M/s BGCC Pvt. Ltd. and from the concerned Executive Engineer
concerned, it becomes clear that the amount relates to two different
works, which have been deliberately projected as one M/s R.K.Gupta
& Co.. Further, according to the official respondents, experience
certificate relating to Patnitop work valued at Rs.11.60 crores is also
non-qualifying since the work was found to be in JV from issuing
authority with 70:30 share, which on evaluation comes below the
required 25% threshold.
13. Claim of the petitioner has also been opposed by respondent No.5, who
in its objections has stated that the contract committee after threadbare
discussion on the financial bid, has accepted the financial bid of
respondent No.5, as a consequence whereof, Letter of Intent dated
03.12.2025 stood issued in its favour. It is stated that M/s R.K.Gupta
& Co., partner of the petitioner Joint Venture, neither had the
experience of successful execution of a STP along with laying of sewer
WP(C) No.3399/2025 9
network whose cost is 25% of the estimated capital cost of the project
nor it had the general construction experience as required under Clause
2(II) A of the e-NIT.
14. Mr. Rahul Pant, learned senior counsel appearing for the petitioner has
stated that in terms of E-NIT No.30 of 2024-25 dated 20.03.2025 for
survey design and execution of Sewerage scheme Katra Town under
Pollution Abatement of River Ban Ganga at Katra, petitioner was
declared L-1 and respondent No.5 as L-3. In a subsequent E-NIT
No.32 of 2024-25 dated 24.03.2025 for Survey Design and Execution
of Sewerage Scheme Samba Town under Pollution Abatement of River
Basanter at Samba, petitioner was again declared as L-1 and
respondent No.5 as L-2. The official respondents deliberately cancelled
the e-NITs only to accommodate respondent No.5. In this e-NIT also
official respondents, in order to declare respondent No.5 as L-1, have
rejected the technical bid of the petitioner.
15. Learned counsel for the official respondents has produced copy of the
order dated 16.12.2025 by virtue of which experience certificate of the
petitioner has been cancelled. The Executive Engineer, who was
present in the Court at the time of hearing, stated that experience
certificate of the petitioner was cancelled on the ground that procedure
of verification was not followed before issuance of the certificate by
the then Executive Engineer.
16. Heard learned counsel for the parties and perused the material on
record.
WP(C) No.3399/2025 10
17. Scope of judicial review in tender matters has been considered by
Supreme Court in its various decisions. Hon‟ble the Supreme Court in
the case of Tata Cellular Vs Union of India, 1994 6 SCC 651, while
considering the scope of judicial review in tender matters, elucidated
following principles:
1) The modern trend points to judicial restraint in
administrative actions.
2) The Court does not sit as a court of appeal but merely
reviews the decision-making process.
3) The Court lacks the expertise to correct administrative
decisions. If a review is permitted, it would be substituting
its decision, which may be fallible.
4) The terms of the invitation to tender cannot be open to
judicial scrutiny as they are in the realm of contract.
Decisions to accept or award contracts are reached
through several tiers and are qualitative, often made by
experts.
5) The Government must have the freedom of contract. Fair
play in administrative actions is necessary, but decisions
must be free from arbitrariness, bias, or mala fides.
6) Quashing decisions can impose heavy administrative
burdens and unbudgeted expenditures on the
administration and lead to increase and unbudgeted
expenditure.
18. After Tata cellular (supra), there is a long series of judgments of the
Supreme Court on the scope of judicial review in tender matters, some
of them are Jagdish Mandal v. State of Orissa, (2007) 14 SCC 517,
Midhigan Rubber v. State of Karnataka, (2012) 8 SCC 216, Afcons
Infrastructure Ltd. v. Nagpul Metro Rail Corporation Ltd., (2016)
16 SCC 818, M/s Agmatel India Pvt. Ltd. v. M/s Resoursys
Telecom, 2022 Legal Eagle (SC) 98, Airport Authority of India v.
WP(C) No.3399/2025 11
Centre for Aviation Policy, Safety & Research (CAPSR), (2022)
SCC Online SC 1334.
19. Hon‟ble the Supreme Court in the case of Balaji Ventures Pvt. Ltd.
V. Maharashtra State Power Generation Company Ltd., 2022
LiveLaw (SC) 295 has observed that “the eligibility criteria in the
tender document applied to all bidders. The owner has the freedom to
set criteria unless they are arbitrary or mala fide. Bidders cannot
challenge criteria that do not suit them. Courts have limited roles in
reviewing tender conditions, as it is an offer to compete”. In Airport
Authority of India (supra), it has been observed by the Supreme Court
that “tender terms are within the domain of the tenderer and not open to
judicial scrutiny unless arbitrary, discriminatory, or mala fide. The
Government must have a free hand in setting terms.”
20. The principles which emerge from a series of decisions of the Supreme
Court are that:
i. The tender inviting authority is free to set eligibility
criteria and conditions unless they are arbitrary,
discriminatory, or mala fide.
ii. The author of the tender document is best suited to
understand and interpret its requirements.
iii. If two interpretations are possible, the author’s
interpretation must be accepted.
iv. If the tender authority follows healthy standards and
norms, court interference is limited.
v. Courts reviewing the decision-making process, not act as
courts of appeal.
WP(C) No.3399/2025 12
vi. There should be no cancellation of awards due to
procedural errors or wrongful exclusion; unsuccessful bidders
can seek damages in civil court.
vii. Courts have no role in imposing fair, wiser, or logical
decisions on tender authorities.
viii. In most cases, the Supreme Court upholds the views of
the tender inviting authority unless the terms are arbitrary,
discriminatory, or mala fide.
21. In view of the settled legal position, the scope of judicial review in
tender matters is only to the extent of arbitrariness, mala fide or
discrimination.
22. The allegation of the petitioner is that the eligibility criterion in respect
of construction experience has been changed from ten years to seven
years after the petitioner has submitted its bid. The corrigendum,
extending the last date of submission of bids to 31.10.2025 upto 2 pm
and changing of construction experience during last seven years instead
of ten years came to be issued on 27.10.2025 whereas the petitioner has
submitted its bid on 30.10.2025. In this view of the matter, one of the
grounds raised by the petitioner to assail the rejection of his technical
bid on the allegation that the change in experience criteria was effected
when the petitioner already stood submitted its bid falls flat, as such,
deserves rejection.
23. The other ground raised by the petitioner is with regard to the
construction experience certificate dated 17.07.2023, to execute
similar nature of works amounting to Rs.17.60 Crores, which fulfils the
eligibility criteria of seven years has been disputed by the official
WP(C) No.3399/2025 13
respondents. According to the official respondents, the amount does
not represent a single work; the amount relates to two different works.
24. Experience is sought from the tenderer/bidder so as to assess its
capability to execute the work for which bids are invited. To assess the
capability of a bidder is a technical issue, which ought to be left to be
decided by the experts in the field.
25. The Supreme Court in Silppi Constructions Contractors v. Union of
India and others, (2020) 16 SCC 489, has held thus:
“19. This Court being the guardian of fundamental rights is duty
bound to interfere when there is arbitrariness, irrationality,
mala fides and bias. However, this Court in all the aforesaid
decisions has cautioned time and again that courts should
exercise a lot of restraint while exercising their powers of
judicial review in contractual or commercial matters. This
Court is normally loathe to interfere in contractual matters
unless a clear-cut case of arbitrariness or mala fides or bias
or irrationality is made out. The Courts must realize their
limitations and the havoc which needless interference in
commercial matters can cause. In contracts involving
technical issues the courts should be even more reluctant
because most of us in judges' robes do not have the
necessary expertise to adjudicate upon technical issues
beyond our domain. As laid down in the judgments cited
above the courts should not use a magnifying glass while
scanning the tenders and make every small mistake appear
like a big blunder. In fact, the courts must give „fair play in
the joints‟ to the government and public sector undertakings
in matters of contract. Courts must also not interfere where
such interference will cause unnecessary loss to the public
exchequer.”
WP(C) No.3399/2025 14
26. Supreme Court in the matter of N.G Projects Limited vs. Vinod
Kumar Jain and Others, (2022) 6 SCC 127 has held that the Court
should refraim from imposing its decision over the authority on the
issue of acceptance or non-acceptance of the bid of a tenderer and that
even if the Court finds 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 wrongful exclusion rather than to injunct the execution of
the contract. The view taken by the Hon'ble Supreme Court in the
above judgment is as under:
"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 present day Governments are
expected to work."
27. The award of contract is essentially a commercial transaction and in
arriving at a commercial decision considerations which are paramount
are commercial considerations. In the instant case, the core issue
WP(C) No.3399/2025 15
revolves around the experience of the petitioner, which is essentially a
technical issue and in view of the ratio of the judicial pronouncements
made by the Supreme Court, technical issues shall be best left to be
decided by the experts in the field as the judges do not have the
necessary expertise to decide on the technical issues.
28. In view of the above, the writ petition is found to be without any merit,
hence dismissed.
Jammu:
30.05.2026
Vinod
) (Moksha Khajuria Kazmi)
Judge
Whether the judgment is reportable: No
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