Court affirms L-1 bidder decision, dismisses M/s Divya Enterprises' challenge citing adherence to tender terms.
In a significant judgment delivered on September 28, 2026, the Allahabad High Court, Lucknow Bench, dismissed the writ petition filed by M/s Divya Enterprises, challenging the tender process for supplying food materials to the Nawab Wazid Ali Shah Zoological Garden in Lucknow. The Division Bench, comprising Justices Shekhar B. Saraf and Abdhesh Kumar Chaudhary, upheld the decision to award the tender to the respondent, declared as the L-1 bidder based on the lowest overall rates quoted.
M/s Divya Enterprises had filed the petition under Article 226 of the Constitution of India, contesting the evaluation methodology of the tender which led to the declaration of respondent no. 4 as the L-1 bidder. The petitioner argued that the evaluation should have considered the quantity of each article along with the quoted rates, rather than just the cumulative rates. However, the Court found the methodology adopted by the tendering authority consistent with the tender terms.
The Court emphasized that the tender conditions specified acceptance based on the lowest overall rates for the complete list of materials, and the monthly quantity mentioned was merely an estimate subject to variation. It noted that the petitioner participated in the bid without raising any pre-bid objections or queries regarding the evaluation methodology, making their subsequent challenge untenable.
Reiterating principles from landmark Supreme Court judgments, the Bench highlighted the limited scope of judicial review in tender matters, asserting that courts should refrain from interfering unless a clear case of arbitrariness, mala fides, or irrationality is established. The interpretation of tender terms primarily falls within the domain of the tender's author, and courts should not substitute their opinion for that of the employer, the judges stated.
The judgment also underscored the necessity for timely challenges in tender processes, noting that the petitioner's objections were highly belated and could not be entertained after the L-1 bidder had been selected and commenced supply.
In conclusion, the Court dismissed the petition, affirming the declaration of the respondent as the lowest bidder and upholding the integrity of the tender process as conducted by the Lucknow Zoo authorities.
Bottom Line :
Tender matter - Judicial review in contractual matters is limited - Where tender conditions contemplated determination of L-1 on basis of lowest overall rates for complete list of items and bidder participated without raising pre-bid objection, challenge after being declared L-2 is not maintainable in absence of arbitrariness, mala fides or perversity - Interpretation of tender terms primarily lies with author of tender.
Statutory provision(s): Article 226 of the Constitution of India
M/s Divya Enterprises v. State of U.P., (All)(DB)(Lucknow) : Law Finder Doc id # 2990720
