Gujarat High Court|Thursday, 5 February 2026
Gujarat HC Rules in Favor of N R Agarwal Industries Ltd in Tender Disqualification Case
Bench
Hon'ble Mr. Justice Bhargav D. Karia
Bhargav D. Karia
Gujarat HC Rules in Favor of N R Agarwal Industries Ltd in Tender Disqualification Case (2026) held that The interpretation of Clause No.29 of the General Terms and Conditions of the GeM was found to be misconceived, leading to the wrongful disqualification of the petitioner.
N R Agarwal Industries Ltd challenged the disqualification of its tender bids by the Gujarat State Board of School Textbooks, which was based on the interpretation of a clause regarding common directors. The petitioner argued that the disqualification was unjustified as the director in question was an Independent Director and did not hold shares in either company. The High Court ruled in favor of the petitioner, stating that the interpretation of the tender conditions was misconceived and ordered the reconsideration of the bids accordingly.
The interpretation of Clause No.29 of the General Terms and Conditions of the GeM was found to be misconceived, leading to the wrongful disqualification of the petitioner.
The court emphasized that the presence of an Independent Director should not automatically lead to disqualification under the 'One Bid Per Bidder' clause if there is no shareholding involved.
Tenders floated by Gujarat State Board of School Textbooks
Petitioner submitted bids
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Petitioner disqualified by the respondent
Interim order passed by the court
Final judgment delivered
