Bilaspur – The High Court of Chhattisgarh has set aside a government hospital tender in Jashpur, holding that authorities acted arbitrarily by denying relaxation benefits meant for Micro and Small Enterprises (MSEs), thereby violating principles of fairness in public procurement.
In its order dated 9 April 2026, a Division Bench comprising Chief Justice Ramesh Sinha and Justice Ravindra Kumar Agrawal allowed a writ petition filed by Adhishri Swa Sahayata Samuh, a women-run self-help group based in Jashpur. The group had challenged the tender process for providing dietary services at the District Hospital, arguing that its bid was unfairly evaluated.
According to the petition, the tender issued on the GeM portal in February 2026 valued at ₹60 lakh for one year clearly provided full relaxation to MSE bidders in respect of experience and turnover criteria. Despite being a registered MSE with valid documentation, the petitioner claimed it was denied this benefit during technical evaluation.
The court noted that while the petitioner was technically qualified, it was awarded only partial marks under the turnover criterion, even though the tender itself exempted MSEs from such requirements. This, the Bench observed, effectively nullified the relaxation clause and distorted the evaluation outcome.
The dispute gained significance because both the petitioner and another bidder had quoted the same financial bid amount of ₹1.09 crore. However, due to the disputed technical scoring, the competing bidder was ranked higher (H1), while the petitioner was placed second (H2). The petitioner argued that proper application of the relaxation rules would have changed the final ranking.
Rejecting the State’s defence that the evaluation was conducted uniformly and in accordance with procurement rules, the court held that once a relaxation is expressly provided in the tender document, it cannot be diluted or selectively applied at the evaluation stage. Doing so, the Bench said, undermines the level playing field required in public tenders.
The court further found fault with the rejection of the petitioner’s representation, observing that it failed to address the core issue and reflected non-application of mind. Such actions, the court said, are inconsistent with Article 14 of the Constitution, which mandates fairness and non-arbitrariness in State action.
Concluding that the entire tender process was vitiated by arbitrariness, the High Court quashed the Notice Inviting Tender (NIT) dated 19 February 2026, along with all consequential actions, including the selection of the highest-ranked bidder.
However, the court granted liberty to the authorities to initiate a fresh tender process, directing that it must strictly adhere to legal requirements and ensure meaningful compliance with MSE relaxation provisions to maintain transparency and equality in evaluation.
This ruling reinforces judicial oversight in tender matters, emphasizing that while courts generally avoid interference, they will step in when procedural fairness and statutory conditions are clearly violated.
Case Details : WPC No. 1597 of 2026; Adhishri Swa Sahayata Samuh v. State of Chhattisgarh & Others