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Supreme Court Allows Contractor to Complete Road Work After PIL Quashed Tender

O.P. Mehta vs Mohinder Kalta & Ors.

The big legal question

Can a PIL validly challenge a tender based on competing bidders' comparative claims?

What this case means

A PIL before the Himachal Pradesh High Court quashed a road construction tender awarded to the appellant and ordered re-tendering. The Supreme Court questioned whether competing bidders' comparative claims can be challenged through a PIL, and allowed the appellant three months to complete the work at original rates.

“The Supreme Court allowed the appellant-contractor three months to complete the PMGSY road work at original rates, expressing reservations about a PIL being used to challenge tender validity on inter-se bidder comparisons.”

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Case at a glance1 / 5

Supreme Court of India

PIL Cannot Substitute for Bidder Rivalry in Tender Disputes

O.P. Mehta vs Mohinder Kalta & Ors. | 2026 INSC 1037

Court: Supreme Court of India, Civil Appellate JurisdictionDate of Decision: September 23, 2026Bench: Justice Dipankar Datta and Justice Sheel NaguArea of Law: PIL maintainability, Tender/Contract LawContract: PMGSY road upgradation, HP-09-694, Rs. 23 crores
O.P. Mehta vs Mohinder Kalta & Ors. · 2026 INSC 1037September 23, 2026
The legal question2 / 5

Can a PIL challenge a tender based on inter-se bidder comparison?

The core legal question framed by the Supreme Court

  • Appellant: PIL predominantly raised comparative claims between two competing bidders, not genuine public interest.
  • Appellant: PIL petitioner acted as alter ego of the unsuccessful bidder who later withdrew its complaint.
  • Respondent/High Court: Award was vitiated by experience discrepancies, dual-name operation, and unmet sub-contracting conditions.
  • Respondent/High Court: Official respondents took contradictory stands on receipt and withdrawal of competitor's complaint.
The petitioner was the alter ego of the unsuccessful bidder who had since withdrawn its own complaint.
O.P. Mehta vs Mohinder Kalta & Ors. · 2026 INSC 1037September 23, 2026
The Court's reasoning3 / 5

Supreme Court's Reasoning: Step by Step

From PIL challenge to the final order

  1. 1Step 1: Court questioned if PIL is the right forum for inter-se comparison of competing bidders.
  2. 2Step 2: Rs. 23 crore contract not large enough to sustain a public resources wastage argument in PIL.
  3. 3Step 3: PIL petitioner identified as the alter ego of the unsuccessful bidder who withdrew its own complaint.
  4. 4Step 4: Appellant disclosed via affidavit that 3 km of road work was already complete and offered to finish at original rates.
  5. 5Step 5: Court granted 3 months to complete work; re-tendering directed only if work is not satisfactorily completed.
O.P. Mehta vs Mohinder Kalta & Ors. · 2026 INSC 1037September 23, 2026
The verdict4 / 5

The Supreme Court's Decision

Civil Appeal No. 12968 and 12969 of 2026

  • The Fact: High Court quashed PMGSY road contract and ordered re-tendering, acting on a PIL by the unsuccessful bidder's ally.
  • The Law: PIL challenging a tender primarily on inter-se bidder comparison is of questionable maintainability; alter ego PIL is suspect.
  • The Result: Appellant given 3 months to complete road work at original 15.03.2024 rates; re-tendering ordered only on failure.
Appellant to complete entire road work within 3 months at original rates; re-tender at market rates if work is not satisfactorily completed.
O.P. Mehta vs Mohinder Kalta & Ors. · 2026 INSC 1037September 23, 2026
Why it matters5 / 5

What This Means for Ordinary People

Significance of the judgment beyond the parties

  • PILs filed to advance the commercial interests of losing bidders, not public welfare, will face serious scrutiny from courts.
  • Public infrastructure projects should not be halted by PILs where the real grievant has already withdrawn its complaint.
  • Courts can give contractors a fair chance to complete work rather than mechanically ordering re-tendering.
  • Citizens benefit when road projects proceed without unnecessary legal interruptions caused by rival business interests.
A PIL driven by a losing bidder's ally, not genuine public interest, deserves serious scrutiny before courts intervene in tender awards.
O.P. Mehta vs Mohinder Kalta & Ors. · 2026 INSC 1037September 23, 2026

At a glance (infographic)

O.P. Mehta vs Mohinder Kalta & Ors. — infographic summary
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In short

This case arose from a PIL filed before the High Court of Himachal Pradesh challenging the award of a road upgradation contract (Matiana, Mahori to Chhaila road, Km. 0/00 to 25/650) under PMGSY package No. HP-09-694 to the appellant O.P. Mehta. The High Court allowed the PIL, quashed the award in favour of the appellant and directed the official respondents to re-tender the remaining work within one month. The High Court based its decision on several factors: contradictory stands by official respondents regarding a complaint by another bidder M/s PK Construction Pvt. Ltd.; whether the appellant's experience was as a sub-contractor or prime contractor; whether the appellant operated under two different names in violation of tender clauses; whether conditions for allowing sub-contracts were fulfilled; and discrepancies in the nature of work experience reflected in the work experience certificate. The Supreme Court expressed strong reservations about the maintainability of the PIL, noting that the challenges predominantly involved inter-se comparative assessment of two competing bidders, and that the work value of Rs. 23 crores was not of such magnitude as to support a claim of wastage of public resources. The Court also noted that the PIL petitioner appeared to be acting as the alter ego of the unsuccessful bidder, who had itself withdrawn its complaint against the successful bidder. During arguments, the appellant through an affidavit informed the Court that three kilometres of road construction were already complete and offered to finish the remaining work at the original rates awarded on 15.03.2024. The Supreme Court accepted this assurance and extended a period of three months to the appellant to complete the entire assigned work at the original rates. If the work is not completed in time with satisfactory quality, re-tendering at prevailing market rates was directed. The interim order dated 07.03.2025 restraining creation of third-party rights was modified accordingly.

Background

The Himachal Pradesh High Court allowed a PIL challenging the award of a road construction contract under PMGSY to appellant O.P. Mehta, quashing the award and ordering re-tendering within one month. The PIL questioned the tender process on grounds including the appellant's contractor credentials, experience discrepancies, and alleged violations of tender conditions. The PIL petitioner was found to be acting as the alter ego of the unsuccessful bidder, M/s PK Construction Pvt. Ltd., whose complaint against the successful bidder had since been withdrawn.

The Decision

The Supreme Court expressed reservations about the PIL's maintainability and, accepting the appellant's assurance that three kilometres of work was already complete, granted three months to complete the entire assigned road work at the original rates of 15.03.2024. If the work is not completed within that period with satisfactory quality, the official respondents are directed to re-tender at prevailing market rates. The interim order restraining creation of third-party rights was modified accordingly.

Why it matters for you

This case signals that courts should be cautious about entertaining PILs that are essentially disputes between competing commercial bidders disguised as public interest matters. An unsuccessful bidder's ally cannot use PIL to re-litigate a tender dispute, particularly when the project work has already commenced and is of modest value. Ordinary citizens benefit when road construction projects are not unnecessarily delayed by such litigation.

Full text of the judgment

Text extracted from O.P. Mehta vs Mohinder Kalta & Ors.. For the authoritative version refer to the Supreme Court of India's official website.

2026 INSC 1037 Page 1 of 6

NON-REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.12968 OF 2026 (@ SLP (C) NO.2036 OF 2025)

...APPELLANT VERSUS MOHINDER KALTA & ORS. …RESPONDENTS

WITH CIVIL APPEAL NO.12969 OF 2026

J U D G M E N T

SHEEL NAGU, J.

1. These appeals assail the Division Bench decision of the High Court of Himachal Pradesh, Shimla, rendered in a PIL bearing CWPIL No.30 of 2024 on 24.12.2024, whereby the PIL was allowed by quashing the award of work in favour of respondent No.5 therein (appellant herein) and directing the official respondents to re-tender the remaining work of Digitally signed by rashmi dhyani pant Date: 2026.09.23 16:59:49 IST Reason: Signature Not Verified

Page 2 of 6

upgradation of Matiana, Mahori to Chhaila road, Km. 0/00 to 25/650 under PMGSY package No. HP-09-694 within one month from the date of the judgment.

2. The aspect which glares in the face in present case is as to whether the issue of validity of a tender, where comparative claims of competing tenderers are to be adjudged, can be raised as subject matter of challenge in a PIL?

2.1. We have our reservations since the grounds raised in the PIL before the High Court of Himachal Pradesh, Shimla pre-dominantly dealt with, inter-se comparative assessment between the two bidders whose bids had been received including respondent No.5 therein (appellant herein).

2.2. Moreso even the cost of work (Rs. 23 crores) was not of such magnitude, which may allow the petitioner in PIL to raise the plea of wastage of public resources.

Page 3 of 6

3. Certain factors which weighed in the mind of the High Court, for rendering the impugned judgment, were as follows: i. The contradictory stand taken by the official respondents as to whether the complaint made by M/s PK Construction Pvt. Ltd. (the other bidder) was actually received by the official respondents or not and if received then whether it was withdrawn or not. ii. Whether the experience gained by the appellant was as a sub-contractor or as a prime contractor. iii. Whether the appellant could have been allowed to operate under two different names in violation of certain clauses of the tender documents. iv. Though it was admitted in the impugned order that sub-contracts were allowed under the terms and conditions of the tender document but subject to fulfilment of certain conditions which were found missing in the instant case.

Page 4 of 6

v. The nature of work experience gained by appellant, as reflected from his work experience certificate was at variance to the nature of work actually executed in the past.

4. It cannot be overlooked that the petitioner before the High Court, as the alter ego of the unsuccessful bidder, filed the PIL questioning the tender process. The said unsuccessful bidder had complained against the successful bidder and has since withdrawn the complaint.

5. During the course of argument, we were informed vide affidavit of appellant dated 03.09.2026 that three (03) Kms. of road construction is complete along with retaining and breast walls of Matiana to Mohri Road in Distt-Shimla (H.P.) and that appellant is ready and willing to complete the work at the same rates on which the work was awarded to appellant on 15.03.2024. Appellant has assured that quality of work shall not be compromised.

Page 5 of 6

5.1 In view of the aforesaid assurance made by the appellant, we extend a period of three months for the appellant to complete the entire work allotted to him on 15.03.2024 at the rates prevailing as on 15.03.2024. If the work so assigned to the appellant is not completed within the given time of three months subject to the official respondents verifying the quality of the work executed, the official respondents are directed to re-tender the same work at the prevailing market rate.

6. The instant case stands deferred to be listed in the first week of December, for the appellant to submit compliance report of this order.

7. This order shall also govern Civil Appeal No.12969 of 2026 preferred by the State of Himachal Pradesh.

8. That by order dated 07.03.2025, this Court had till the pendency of this appeal restrained the official respondents from creating third party rights, which interim order continues to subsist till date.

Page 6 of 6

Therefore, to the extent indicated above in this order, the said interim order dated 07.03.2025 stands modified. 9. List in the 1st week of December, 2026, for appellant to file compliance report.

……………………………...J. (DIPANKAR DATTA)

…...………………………...J. (SHEEL NAGU) NEW DELHI; SEPTEMBER 23, 2026

AI-assisted summary, reviewed and verified by our editorial team.

In the Court's words

“Whether the issue of validity of a tender, where comparative claims of competing tenderers are to be adjudged, can be raised as subject matter of challenge in a PIL?”
“The petitioner before the High Court, as the alter ego of the unsuccessful bidder, filed the PIL questioning the tender process.”
“The said unsuccessful bidder had complained against the successful bidder and has since withdrawn the complaint.”
“If the work so assigned to the appellant is not completed within the given time of three months subject to the official respondents verifying the quality of the work executed, the official respondents are directed to re-tender the same work at the prevailing market rate.”

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