Jammu and Kashmir High Court
Administrative and Public LawContract Law

Adverse contractor workload entries require individualized reconsideration under the prescribed policy.

M/S GRANCO INDUSTRIES AND CONSTRUCTION THROUGH ITS MANAGINGDIRECTOR GHULAM RASOOL NAGVI vs UNION OF INDIA AND ORS (DEFENCE)

Jammu and Kashmir High CourtJUDGMENT: September 29, 20262 MIN READSOURCE JUDGMENT
Adverse contractor workload entries require individualized reconsideration under the prescribed policy.. M/S GRANCO INDUSTRIES AND CONSTRUCTION THROUGH ITS MANAGINGDIRECTOR GHULAM RASOOL NAGVI vs UNION OF INDIA AND ORS (DEFENCE). Jammu and Kashmir High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioners, contractors supplying services to the Military Engineering Services (MES), challenged communications or orders treating them as ineligible to participate in tenders because certain works were recorded as being in “slow progress” in Work Load Returns (WLRs).

Source reference: para. 2–3

They disputed the entries, asserting that works had been completed or substantially executed, or that delays arose from circumstances beyond their control, including site-access restrictions, the COVID-19 pandemic, post-August 2019 conditions, and matters attributable to the respondents.

Source reference: para. 2–3

Some also alleged cancellation of works despite substantial completion and non-release of claimed amounts.

Source reference: para. 2–3

Interim orders in almost all petitions had allowed the petitioners to participate in tenders, subject to the final outcome of the cases.

Source reference: para. 4

The respondents submitted that the matters could be disposed of by directing the Chief Engineer Command to consider each petition as a representation under the respondents’ policy governing adverse WLR remarks.

Source reference: para. 6–8
02

Issues

1. Whether the disputed adverse WLR entries and resulting tender ineligibility should be finally determined by the Court or reconsidered by the competent Chief Engineer under the respondents’ policy.

Source reference: para. 5–8

2. Whether the petitioners’ interim permission to participate in tenders should continue pending that reconsideration.

Source reference: para. 4, 10
03

Law Applied

The Court relied on the respondents’ policy for WLR reporting, which requires show-cause notices for proposed adverse remarks to be served by the Accepting Officer by the specified deadline; the contractor’s reply to accompany the WLR; and the forwarding authority to confirm that notice was issued, a reply received, and the reply analysed before an adverse remark was recorded.

Source reference: para. 7

The Court also required the competent authority to consider each contractor’s case separately, in accordance with law and the policy, and to issue a detailed speaking order.

Source reference: para. 8–9
04

Reasoning

The Court noted that the petitioners’ immediate ability to participate in tenders had been protected by interim orders, but the underlying adverse WLR entries had not been finally reviewed, despite the petitioners’ claims of changed circumstances and completed works.

Source reference: para. 4–5

Because the policy prescribed a mechanism for considering adverse remarks and the respondents proposed individual administrative reconsideration, the Court concluded that each petition should be treated as a separate representation.

Source reference: para. 6–9

The Chief Engineer Command was directed to assess the workload in light of the policy, relevant facts, subsequent developments, and contemporaneous official records, and to provide a reasoned decision.

Source reference: para. 6–9
05

Holding

The Court disposed of all the writ petitions other than WP(C) No. 1091/2024, directing the concerned Chief Engineer Command to treat each petition as a separate representation and pass a detailed speaking order within four weeks of receiving a copy of the judgment.

Any subsisting interim order permitting participation in tenders was to remain in force until the Chief Engineer Command made its decision; if that decision went against a petitioner, the petitioner could pursue an appropriate remedy in law.

Source reference: para. 9–10

WP(C) No. 1091/2024 was dismissed as infructuous on counsel’s statement, and any interim direction in it was vacated.

Source reference: para. 16–17

The Court also allowed the application to correct the petitioner’s name in the order concerning WP(C) No. 2448/2026 and directed that the main petition be governed by the common directions.

Source reference: para. 12–15
Jammu and Kashmir High Court

Original Court PDF

M/S GRANCO INDUSTRIES AND CONSTRUCTION THROUGH ITS MANAGINGDIRECTOR GHULAM RASOOL NAGVIvsUNION OF INDIA AND ORS (DEFENCE)

Jammu and Kashmir High Court · September 29, 2026

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