United Order And Supply Co-Operative … vs The State Of West Bengal And Others on 27 August, 2025

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Calcutta High Court (Appellete Side)

United Order And Supply Co-Operative … vs The State Of West Bengal And Others on 27 August, 2025

           IN THE HIGH COURT AT CALCUTTA
       CONSTITUTIONAL WRIT JURISDICTION
                      Appellate Side


Present:

The Hon'ble Justice Ajay Kumar Gupta


                     WPA 18675 of 2019
                             With
                CAN 1/2020 & CAN 2/2025


     United Order and Supply Co-Operative Society Ltd.
                            Versus
            The State of West Bengal and Others




For the Petitioner              : Mr. Satrajit Sinha Roy, Adv.

For the Respondent No. 17       : Mr. Sagar Bandyopadhyay, Ld. Sr. Adv.

Ms. Soma Kar Ghosh, Adv.

Ms. Suparna Paul, Adv.

Mr. Arabinda Pathak, Adv.

Ms. Shilpi Ghosh, Adv.

For the State Respondents : Mr. Saikat Chatterjee, Adv.

Ms. Amrita Panja Mallick, Adv.

Heard on                        : 20.08.2025

Judgment on                     : 27.08.2025
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Ajay Kumar Gupta, J:

1. The writ petitioner approached this Court praying

for direction upon the respondent authorities to admit the

technical bid of the Petitioner and to reject the technical

bids of respondent nos. 15 to 17 in connection with the

tender process initiated in NIT No. 3542 dated 27.05.2019

for supply of cooked diet for indoor patients at Bankura

Sammilani Medical College & Hospital, Bankura along with

other consequential reliefs.

2. The sum and substance of this case is that the

petitioner is a society duly registered under the Co-

operative Societies Act, 1983 and engaged, inter alia, in the

business of supplying cooked diet to various Government

Hospitals across different districts of the State of West

Bengal.

3. Pursuant to NIT No. 3542 dated 27.05.2019, issued

by respondent no. 7 invited E-Tender for supply of cooked

diet to the indoor patients of Bankura Sammilani Medical
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College & Hospital. The petitioner participated in the said

tender process by submitting all requisite documents.

4. The technical bid of the petitioner was opened and

duly admitted on 19.06.2019. A comparative statement of

technical bid was uploaded on the tender web portal

bearing the signatures of concerned respondents, wherein

it was reflected that all the documents has been submitted

by the petitioner, was “Not Approved By The Swasthya

Bhavan” without any reason being assigned.

5. According to the petitioner, upon scrutiny of the

documents furnished by the other participants/bidders, it

transpired that several deficiencies were present in their

bids. Nevertheless, the respondent authorities, in an

arbitrary, discriminatory and collusive manner, approved

such bids, while rejecting that of petitioner. It is alleged

that respondent nos. 16 and 17 did not ever posses the

requisite credentials to qualify, yet their bids were

entertained, whereas the petitioner’s bid was rejected
4

dehors the terms of tender. In view of clause 18.3 of the

tender conditions, the bids of respondent no. 16 to 18 were

liable to be rejected.

6. Learned counsel appearing on behalf of the

petitioner contended that the petitioner’s technical bid was

effected without due consideratation of the documents and

credentials furnished by the petitioner, which were, in fact,

better to those of private respondents.

7. It was further submitted that respondent no. 18 has

failed to submit the tender application form, the bidders

undertaking, the bank solvency certificate and the

performance certificate duly authenticated by the Notary

Public as mandatory requirement under tender conditions.

Despite such deficiency in the documents submitted in the

tender, his bid was accepted, which vitiates the entire

process. Hence, the bids of the respondent nos. 16 to 18

are liable to be rejected and fresh tender should be issued.
5

8. Learned counsel submitted the work order issued in

favour of the respondent no. 17 beyond the expiry of the

maximum period of 120 days as prescribed under E-Tender

is illegal. The respondent authority did not comply with the

clause 6 of the tender dated 27.05.2019. Therefore, the

respondent authority acted arbitrarily and whimsically and

rejected the technical bid of the petitioner.

9. Learned counsel finally argued that when the

respondent authority violates its own tender process with

mala fide intention, arbitrarily or for collateral purpose, in

such case, the Court is not powerless to cancel the tender

process and directed for issuance of fresh tender.

10. Learned counsel has placed reliance of the three

judgments in support of his contention that the writ court

can invoke power of judicial review even in the matter of

Government Contracts and commercial tender, when it

involves mala fide or intended to favour someone and it

affects the public interest, as under: –

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i. Jagdish Mandal Vs. State of Orissa and
Ors.1 Particularly paragraph nos. 21 and 22
thereof;

ii. M/s Dwarkadas Marfatia and Sons Vs.
Board of Trustees of the Port of Bombay2

particularly paragraph nos. 31, 34 and 35
thereof;

iii. Sterling Computers Limited Vs. M/s M &
N Publications Limited & Ors. WITH United
Database (India) Pvt. Ltd. Vs. M/s M & N
Publications Limited & Ors. AND United India
Periodicals Pvt. Ltd. Vs. M/s M & N Publications
Ltd. And Ors.3.

11. Per contra, learned counsel appearing on behalf of

the State respondent No.7 vehemently opposed the prayer

of the learned counsel appearing on behalf of the petitioner

and further submitted that the writ petition is not at all

maintainable in law. The petitioner’s technical bid was

rejected by the authority considering his credentials and

1
(2007) 14 SCC 517;

2

(1989) 3 SCC 293;

3

(1993) 1 SCC 445.

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documents and other requisite eligibility criteria comparing

with other bidders. The financial credentials of all the

bidders were forwarded to the State Government for

verification as the data pertaining to financial capacity is

monitored centrally at Swasthya Bhawan on the basis of

information furnished by concerned hospitals and districts.

The purpose of issuing tender was for supply of cooked diet

for indoor patients at Bankura Sammilani Medical College

& Hospital, Bankura. Out of six bidders, finally three were

selected after verifying their financial credentials and other

essential requirements.

12. Respondent no. 17 was finally selected after a

lottery process and emerged as the lowest L1 bidder and

finally work order was issued in favour of the respondent

no. 17 in the year 2023. The delay was caused due to filing

of several writ petitions by different parties like Petitioner

and Sonar Bangla Caterer etc. After issuing work order in

favour of the respondent no. 17, the writ petition being
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WPA 878 of 2020 has been dismissed as infructuous vide

order dated 25.06.2025 passed by this court.

13. The writ petitioner has not challenged the said work

order issued in favour of the respondent no. 17 in

appropriate form as yet. by filing an application in the

present writ petition is not maintainable in the eye of law,

when the cause of action arose later after final selection.

Such prayer cannot be entertained in this Writ Petition.

14. The Petitioner should have challenged the said work

order issued in favour of the respondent no. 17 in separate

form, hence this writ petition should be dismissed because

tender process has already been completed and work order

has been issued in favour of the respondent no. 17.

15. The challenge with regard to rejection of the

petitioner in the technical bid become infructuous, when

final work order was issued in 2023. The respondent No. 7

selected respondent No.17 comparing several documents

like their credentials, goodwill, financial capacity and other
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eligibility criteria. Rejection order of technical bid was

published in the website. Therefore, question of assigning

reasons does not arise. It is sole discretionary power of the

respondent authorities to consider or reject the technical

bid considering their credentials, goodwill, financial

capacity and other eligibility criteria and the nature of

service and public interest and under such situation,

interference by way of judicial review under Article 226 of

the Constitution is not desirable.

16. The Hon’ble Supreme Court time and again

reiterated that the Courts should exercise a lot of restraint

while exercising power of judicial review under contractual

or commercial matters, interference should be made only

on clear- cut cases or arbitrariness or mala fide or bias or

irrationality.

17. Mr. Bandyopadhyay, learned senior counsel

appearing on behalf of the respondent no. 17 supported the

submissions made by the learned counsel appearing on
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behalf of the State respondent and further submitted that

respondent no. 17’s credentials were/are better than the

petitioner herein. Respondent no. 17 has already received

work order in the year 2023 and from then, the respondent

no. 17 supplying cooked diet for indoor patients at Bankura

Sammilani Medical College & Hospital, Bankura without

any complaint or any disturbance. Even while admitting

the writ petition on initial stage, this Court has not granted

any interim order in favour of the petitioner. Therefore,

there was no bar to issue work order in favour of the

respondent no. 17.

18. Even some delay is caused due to pendency of writ

petitions and same is condonable otherwise a fresh tender,

if issued, it would be further make delay as the service was

very essential to supply cooked diet for indoor patients at

Bankura Sammilani Medical College & Hospital, Bankura

and the Respondent no.17 has been supplying cooked diet

since 2023 almost tender period is about to complete.
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19. The fresh cause of action arose when work order

was issued in favour of the respondent no. 17 in the year

2023 but even knowing the facts, the petitioner has not

challenged the said order. Therefore, the instant writ

petition become infructuous and the same should be

dismissed.

To support of his contentions, he has placed reliance of the

following judgments as under:

i. Nicco Corporation Ltd. Vs. Cable
Corporation of India Limited & Ors. WITH Metro
Railway
, Calcutta & Anr. Vs. Cable Corporation
of India Limited & Ors.4
;

ii. Jagdish Mandal Vs. State of Orissa and
Others
WITH Laxman Sharma Vs. State of
Orissa & Ors.5
;

iii. Afcons Infrastructure Limited Vs. Nagpur
Metro Rail Corporation Limited & Anr.6
;

iv. Silppi Constructions Contractors Vs.
Union of India & Another7
.

4
2007 SCC OnLine Cal 652 : (2008) 1 CHN 567 : (2008) 61 AIC (Sum 12) 6;
5
(2007) 14 SCC 517;

6

(2016) 16 SCC 818 : 2016 SCC OnLine SC 940;

7

2019 SCC OnLine SC 1133.

12

20. This Court has heard the learned advocates

appearing for respective parties, upon perusal of the writ

petition, application, affidavit-in-opposition and reply

thereto, this Court finds the writ petitioner had challenged

the rejection of his technical bid and prayer for a direction

permitting him to participate in the tender process and/or

for issuance of fresh tender. The petitioner challenged with

regard to selection in technical bid.

21. Evaluation of a contingent technical bid is upon

multiple parameters such as credentials, financial capacity,

goodwill and past performances and other allied factors. All

these factors required to be considered at the threshold

stage of tendered process after comparing with others

participants. On such evaluation, the petitioner was found

deficient in fulfilling the requisite criteria essential for

supply of cooked diet to the indoor patients at Bankura

Sammilani Medical College & Hospital, Bankura.
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22. Out of six bidders only three bidders were found

technically qualified. Thereafter, on 27.09.2019 at 4 PM, a

lottery was conducted amongst three lowest bidders whose

financial bids were tied in connection with the aforesaid

tender.

23. The respondent No.17 and other two selected

contractors had better parameters than the writ petitioner.

The lottery process of selection was conducted in the

presence of the three selected parties. The respondent

No.17 was declared as L-1 in the lottery selection process

and, accordingly, awarded the contract. A work order was

issued in favour of the respondent no.17 in 2003 and the

same is continuing till date. Hence, prayer sought for in the

writ petition without any valid ground at this present stage,

when already work order has been issued in favour of

Respondent no.17, cannot be interfered with by the judicial

review.

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24. The judgment relied upon by the learned counsel for

both the sides primarily deal with the contours of judicial

review in matters relating to Government contracts and

tenders. The legal position is well settled that although the

Court can exercise its writ jurisdiction in cases of

arbitrariness, mala fides, bids or irrationality, the scope of

interference at the stage of technical evaluation is extremely

limited. Technical evaluation involves assessment of several

factors, which are essentially factual and comparative in

nature and Courts, not being experts in field, ordinarily

refrain from substituting their own view for that of the

tendering authority.

25. The respondent authority is the authority to select

best tenderer in field of service provider, particularly supply

of services like cooked diet for indoor patients at Bankura

Sammilani Medical College & Hospital, Bankura as it

involves public interest. When public interest is involved, a

Court should refrain from interfering with the tender
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process particularly when the petitioner failed to success

even at the technical bid stage.

26. The Hon’ble Supreme Court in the case of Silppi

Constructions Contractors Vs. Union of India and Anr. 8

held in paragraph no. 19 as under:-

“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. One must remember
that today many public sector undertakings compete
with the private industry. The contracts entered into
between private parties are not subject to scrutiny under
writ jurisdiction. No doubt, the bodies which are State
within the meaning of Article 12 of the Constitution are
bound to act fairly and are amenable to the writ
jurisdiction of superior courts but this discretionary
power must be exercised with a great deal of restraint
and caution. The courts must realise their limitations

8
2019 SCC OnLine SC 1133.

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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.”

27. The challenge of issuing final work order in favour

of respondent no. 17 at this belated stage is not justified

and also not sustainable in law. Filing an application with a

prayer to set aside or cancel the work order issued in

connection with the tender notice being no.3542 dated 27 th

May, 2019 in favour of the respondent no.17 after expiry of

long period of issuance of work order without any valid or

sufficient ground does not call for interreference when the

period of supply of cooked diet is verge of completion.
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Therefore, it is not a fit case to allow such prayer.

Therefore, the writ petition is liable to be dismissed.

28. Accordingly, WPA 18675 of 2019 stands dismissed

without order as to costs.

29. Consequently, CAN 1/2020 and CAN 2/2025 and

all connected applications, if any, are also, thus, disposed

of.

30. Interim order, if any, stands vacated.

31. Parties shall act on the server copies of this

Judgment downloaded from the official website of the High

Court at Calcutta.

32. Urgent Photostat certified copies of this Judgment,

if applied for, be supplied to the parties upon compliance of

all the necessary and legal formalities.

(Ajay Kumar Gupta, J)

P.A.

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