Bid Validity Confirmed in Automated E-Auction for Sand Ghats; No Evidence of Arbitrariness or Manipulation Found
In a significant ruling, the Patna High Court on May 13, 2026, dismissed the writ petition filed by Plas Radha Int Udyog challenging the validity of an e-auction process for the settlement of sand ghats by the State of Bihar. The Division Bench, comprising Justices Sudhir Singh and Shailendra Singh, upheld the automated system-driven process of the e-auction and validated the bid timing submitted by the highest bidder, Respondent No. 7.
The court was petitioned to examine the legitimacy of the bid submitted by Respondent No. 7, which was made 30 seconds after the original closing time. The petitioner contended that the bid was beyond the stipulated time, rendering the acceptance arbitrary and violative of the auction conditions. However, the court found that the auction commencement was delayed by five minutes due to technical reasons, shifting the closing time and triggering an automatic extension under Clause 12 of the tender conditions.
The court emphasized that the automated extensions ensure fairness and transparency, and there was no evidence of arbitrariness, manipulation, or mala fides in the process. The scrutiny committee's report, which included system-generated logs and bidding timelines, was pivotal in establishing that the bid by Respondent No. 7 at 2:00:30 PM was within the permissible extended period, validating the respondents' decision to accept the highest bid.
Citing precedents such as Monarch Infrastructure (P) Ltd. v. Ulhasnagar Municipal Corporation and Silppi Constructions Contractors v. Union of India, the court reiterated the limited scope of judicial interference in tender processes unless clear arbitrariness or irrationality is established. The court's decision underscores the importance of adhering to automated processes in government contracts to maintain transparency and equality among participants.
The dismissal of the writ petition affirms the integrity of system-driven e-auction processes and serves as a reminder of the judiciary's restraint in interfering with technical and contractual matters unless substantial evidence warrants it.
Bottom line:-
E-auction conducted under government tender conditions must strictly adhere to the terms specified in the tender document. System-driven processes, like automated extensions, ensure fairness and transparency. Courts should exercise restraint in interfering with such processes unless arbitrariness, mala fides, or irrationality are established.
Statutory provision(s): Clause 12 of Tender Conditions
Plas Radha Int Udyog v. State of Bihar, (Patna)(DB) : Law Finder Doc id # 2898173
