Non-Participant Cannot Challenge Tender Process Post Completion: Gauhati HC

In a stern decision protecting commercial contract finality, the Gauhati High Court has ruled that a non-participant who sleeps over a tender notification published on an authorized government portal cannot subsequently challenge the tender conditions or process after the auction has concluded.

Justice Anjan Moni Kalita delivered the judgment while rejecting a writ petition filed under Constitution of India, 1950 by a Kolkata-based firm challenging the auction process for the demolition and disposal of plant, machinery, and structures of the defunct Cachar Paper Mill in Panchgram, Assam.

Court Observations and Directions

The High Court observed that the petitioner was a registered user of the MSTC portal and failed to exercise vigilance regarding the Notice Inviting Tender (NIT). The Court emphasized that since 20 bidders across the country participated, the assertion of inadequate publicity lacked foundation.

The Court, in its reasoning, observed: "It is

Article 226 of the Constitution of India, a Constitutional Court has limited jurisdiction of review of a commercial contract. The terms and conditions of a contract being created and written by the issuer of the contract or the employer as per its requirements to meet the scope of work, the same are the prerogative of the issuer of the contract or the employer, a Constitutional Court should refrain from interfering unless any arbitrary or mala fide or biasness is alleged in awarding the contract or the terms and conditions are such which do not have any reasonable or rational nexus with the object to be achieved."

Tracing established precedents, the Court cited M/s Michigan Rubber (India) Limited vs. State of Karnataka & Ors. ( "(2012)8 SCC 216": 2012 CaseBase(SC) 48) and Tata Cellular v. Union of India ( "(1994) 6SCC 651": 1994 CaseBase(SC) 278) to reiterate the narrow scope of judicial review in public tenders. Relying on National Highways Authority of India vs. Gwalior-Jhansi Expressway Limited ( "(2018) 8 SCC 243": 2018 CaseBase(SC) 707), the Court affirmed that a party failing to participate in a tender process cannot challenge its terms post conclusion.

Background

The dispute pertained to an e-auction initiated on August 7, 2025, by the Assam Industrial Development Corporation Limited (AIDC) through MSTC Limited for the demolition and disposal of the defunct Cachar Paper Mill. The petitioner, M/s Vishnu Engineering Corporation, claimed it remained unaware of the tender because the NIT was not published in national newspapers or on the State Public Procurement Portal (SPPP) in accordance with the Assam Public Procurement Rules, 2020. The petitioner submitted a representation offering a standing bid of Rs. 120 Crores and subsequently approached the High Court seeking permission to participate and challenging the pre-qualification criteria.

Respondent No. 1 argued that the decision to publish the auction solely on the MSTC portal a Central Government Enterprise under the Ministry of Steel was taken by the Cabinet to ensure nationwide reach. The State highlighted that 20 bidders participated, proving wide publicity, and argued that the petitioner approached the Court over a month after the auction process concluded.

Finding no merit in the petition, the Gauhati High Court held that the petitioner had only itself to blame for missing the tender notification on a portal where it was already registered. Consequently, the High Court dismissed the writ petition, directing parties to bear their own costs.

Case Details:
Case No.: WP(C)/6517/2025
Neutral Citation: 2026:GAU-AS:12168
Case Title: M/S VISHNU ENGINEERING CORPORATION v. THE ASSAM INDUSTRIAL DEVELOPMENT CORPORATION LIMITED AND ANR
Appearances:
For the Petitioner(s): Mr. R. Karnani, Adv.
For the Respondent(s): Mr. D. Saikia, Advocate General, Mr. D. Deka, Standing Counsel, AIDC, Mr. P. S. Bhattacharya, CGC

Source: 2026 CaseBase(GAU) 1158