Bihar, Services, Railways and Haryana qualified from Cluster one to four. The eight teams that finished in the top two positions in each group in the quarter-final league in 1985–86 were seeded directly to the quarter-final.
Prasanta Banerjee's goal went through the net and was awarded by the referee after consultation with the linesman B. S. Bisht. Maharashtra refused to play and there was a delay of seven minutes.
Referee: Badal Chakrabarty (Tripura), S. S. Salian (Maharashtra)
After the match ended at 1–1 after 90 minutes, the crowd threw stones at the Kerala players. Thomas Sebastian was hit by a stone and needed medical attention. Debashis Roy's header appeared to have been saved on the goal line but was given as a goal.