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SANJIV KHANNA, SANJAY KUMAR, K. V. VISWANATHAN
ABCI Infrastructures Pvt. Ltd. – Appellant
Versus
Union of India – Respondent
What is the legality of enforcing encashment of a bank guarantee when a bid error is clearly evident and promptly disclosed? What are the conditions under which a bidder’s mistake in bid submission may be corrected or relief granted under the Indian Contract Act, 1872 (Section 20) and related equitable principles? What are the Court’s determinations regarding responsibility for delays and corrective steps in public contract bidding when a bidder commits a unilateral mistake?
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JUDGMENT
SANJIV KHANNA, CJI.
Leave granted.
2. This is an avoidable litigation. No doubt, there was a mistake on the part of the Appellant – M/s ABCI Infrastructure Private Limited, albeit, instead of taking a pragmatic approach, Respondent No. 2 – Border Road Organisation [Hereinafter, “BRO.”] under the Ministry of Defence, Union of India, adopted an obdurate and overly legalistic stance, causing a delay in the project's execution.
3. We begin by briefly discussing the facts of the case:
o Ten bidders, including the Appellant, had submitted their online Technical and Financial Bids on 03.06.2023. The Appellant, like others, had furnished a bank guarantee of Rs.15,04,64,000/-.
o On 05.06.2023, tec
Mistake – A mistake may be unilateral or mutual, but it is always unintentional – If it is intentional, it ceases to be a mistake – Mistakes, including by authorities, should be resolved through corr....
Courts may mitigate penalties for inadvertent bidding errors, emphasizing fairness in tender processes.
E-auction – Mistake in bid – While undertaking exercise of judicial review of matters relating to tenders, court has to strike a fair balance between interests of Government, which is always expected....
The sanctity of the offer made by the tenderer must be respected, and once a bid has been submitted pursuant to a tender, it has to be the price which the tendering authority is bound to consider whi....
The timing of offer acceptance and withdrawal in relation to EMD forfeiture is crucial in determining the applicability of tender clauses and the entitlement to EMD return.
Government Contract – Sanctity of tender process is paramount and should be maintained at all cost – While benefit or accrual of more revenue to public exchequer is certainly an important aspect, equ....
The annulment of a tender by the NHAI was justified due to the petitioner's failure to comply with procedural requirements, affirming the authority's discretion in public procurement.
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