M&C represented a tenderer challenging Bangladesh Public Procurement Authority’s decision holding PPA and PPR only applies to purchases.
In a landmark judicial development, a Division Bench of the High Court Division, comprising of Mr. Justice Ahmed Sohel and Madam Justice Fatema Anwar, delivered a significant judgment on July 9, 2026, establishing a critical legal principle relating to applicability of public procurement laws to sale and disposal of public assets.
This ruling addresses a critical jurisdictional gap, as the case at hand involved a ruling by the Bangladesh Public Procurement Authority refusing to adjudicate a dispute arising out of a tender for the sale and disposal of industrial by-products specifically Dry Ash and Gypsum from the Patuakhali 1320 (2×660) MW Coal Fired Thermal Power Plant operated by state-owned RPCL-Norinco Intl Power Limited (RNPL). BPPA held that public procurement laws and acts were to only encompass the “purchase” or “procurement” of goods, works, and services using public funds. The High Court Division overturned the BPPA’s decision and through its judgment sent the dispute back to BPPA holding that it had jurisdiction to adjudicate disputes over tenders for public sales.
By ruling that such sales now fall within the ambit of the legal framework for public procurement, the High Court has held that competitive bidding and technical evaluation principles as contained in the procurement laws apply to both the acquisition and disposal of public assets.
Marking the first judgment on this specific law point, the decision provides essential clarity on the transition from the legacy 2006 Act to the 2025 regulatory regime. H.B. Traders Limited, the petitioner that successfully challenged the prior restrictive interpretation of the law, was represented by the Mahbub & Company’s Saqeb Mahbub, Partner, M Parvez Rana and S M Rasheduzzaman Rone, Associates.
This milestone verdict is expected to have far-reaching implications for public sector entities and infrastructure projects across Bangladesh, mandating that all future disposals of state-generated materials remain consistent with the overarching principles of fairness and legal integrity.
