Patna High Court

Automated bidding extensions in e-auctions are valid if system-driven and uniformly applied to all participants.

PLAS RADHA INT UDYOG, vs The State of Bihar

Patna High CourtJUDGMENT: May 13, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner challenged the e-auction settlement of two sand ghats (Group No. 4) in Muzaffarpur.

Source reference: para. 8, 10

The auction, originally scheduled for 26.12.2022 from 11:00 A.M. to 01:00 P.M., commenced at 11:05 A.M. due to technical issues.

Source reference: para. 8, 10

Under Clause 12 of the tender, a bid within the final five minutes triggers a one-hour extension.

Source reference: para. 11

Respondent No. 7 placed a bid at 01:00:30 P.M. (within the final five minutes of the revised 01:05 P.M. deadline), causing the system to automatically extend the window to 02:05 P.M.

Source reference: para. 11, 13

Respondent No. 7 then placed the highest bid of Rs. 1,56,27,150/- at 02:00:30 P.M.

Source reference: para. 4

The Petitioner, whose final bid was at 01:47:56 P.M., alleged the auction closed at 02:00 P.M. and the Respondent’s bid was invalidly accepted after expiry.

Source reference: para. 3-4
02

Issues

1. Whether the bid submitted by Respondent No. 7 at 02:00:30 P.M. was within the permissible time-frame according to Clause 12 of the e-auction notice and the actual commencement time of the auction.

Source reference: para. 9

2. Whether the actions of the respondent authorities in declaring Respondent No. 7 as the successful bidder were arbitrary, biased, or violative of the principles of natural justice.

Source reference: para. 6, 9
03

Law Applied

Principles of fairness, transparency, and non-arbitrariness in government contracts as established in Monarch Infrastructure (P) Ltd. v. Ulhasnagar Municipal Corporation, emphasizing that all participants must be treated alike.

Source reference: para. 15

Restrictive judicial review in contractual/technical matters unless there is manifest arbitrariness or mala fides as per Silppi Constructions Contractors v. Union of India.

Source reference: para. 17

Doctrine from University of Mysore v. C.D. Govinda Rao, holding that courts should be slow to interfere with the findings of expert/technical committees in the absence of mala fides.

Source reference: para. 19
04

Reasoning

The Court examined the Scrutiny Committee report and the "Auction Synopsis Report," which confirmed that the auction's start time was shifted to 11:05 A.M. due to technical reasons.

Source reference: para. 10-12

Because the closing window shifted to 01:05 P.M., the bid at 01:00:30 P.M. was validly within the "last five minutes" specified in Clause 12.

Source reference: para. 11

The resulting one-hour extension to 02:05 P.M. was system-generated and automatic, precluding any manual intervention or favoritism.

Source reference: para. 12, 18

The Court reasoned that since the extension applied uniformly to all qualified bidders, there was no discrimination.

Source reference: para. 16, 20

The Petitioner failed to refute the authenticity of the system logs or prove any breach of the tender conditions.

Source reference: para. 12, 21
05

Holding

The Court answered the issues in the negative, holding that the bid by Respondent No. 7 was legally valid as it was submitted within the automatically extended period.

The writ petition was dismissed, and the settlement in favor of Respondent No. 7 was upheld.

Source reference: para. 22
Patna High Court

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PLAS RADHA INT UDYOG,vsThe State of Bihar

Patna High Court · May 13, 2026

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