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2025 Supreme(Gau) 1296

IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
MICHAEL ZOTHANKHUMA, J.
Hatimuria Developers Private Limted - Appellant
Vs.
The State Of Assam And Ors. - Respondent 
WP(C) No. 3963 Of 2025
Decided On : 18-07-2025

Advocates:
Advocate Appeared:
For the Appellant : MS M TIWARI, MR V KUMAR,MR B HAZARIKA,MR B PATHAK
For the Respondent: SC, PWD, GA, ASSAM

The court upheld the requirement of compliance with mandatory tender conditions, reaffirming that failure to submit necessary documents, like a Power of Attorney, results in bid rejection.

Headnote:(A) Companies Act, 2013 - Section 21 - Tender documents - Bid Evaluation Committee declared petitioner's bid non-responsive for failure to submit requisite documentation as per Clause 3.4 of the Information and Guidelines for bidders, mandating signature by a Power of Attorney holder and submission of corresponding documents. (Paras 2-22)

(B) Judicial Review - The interpretation and requirements of tender documents established by the issuing authority must be adhered to unless proven malicious or arbitrary. (Paras 12, 20)

(C) Waiver of Non-compliance - Failure to seek pre-bid clarification or challenge to the mandatory clause results in forfeiture of rights to contest the rejection. (Paras 10, 18)

Facts of the case:
The petitioner, a private limited company, contested the rejection of its bid by the Bid Evaluation Committee, citing lack of essential documents, particularly a Power of Attorney and Memorandum of Articles of Association.

Findings of Court:
The rejection was upheld as Clause 3.4 was deemed mandatory, with no grounds for interference identified.

Issues: Whether the Power of Attorney was required for a company director's signature, and the implications of non-compliance with the tender conditions.

Ratio Decidendi: The court held that adherence to tender conditions, especially mandatory ones, is essential and the interpretation by the tender authority should prevail unless malice or arbitrariness is demonstrated.

Result: Writ petition dismissed.

Table of Content
1. bid requirements for technical documents (Para 2 , 3 , 4 , 5)
2. interpretation of bid document submission requirements (Para 6 , 7 , 8)
3. mandatory compliance with tender conditions (Para 9 , 10)
4. judgment of dismissal of writ petition (Para 11 , 22)
5. court deference to tender document interpretation (Para 12 , 13 , 14 , 16 , 19)
6. non-compliance leads to rejection of bid (Para 15 , 17 , 18 , 20 , 21)

ORDER :

MICHAEL ZOTHANKHUMA, J.

Heard Mr. B. Pathak, learned counsel for the petitioner. Also heard Mr. P. Nayak, learned Addl. A.G. for the respondent Nos. 1 to 3.

2. The petitioner is aggrieved with the minutes of the Bid Evaluation Committee held on 25.06.2025, wherein the petitioner’s technical bid was declared non-responsive, on the ground that the petitioner had not submitted a copy of the Power of Attorney proving that the Power of Attorney holder had signed the bid documents and not furnishing a copy of the Memorandum of Articles of Association in terms of Clause 3.4 of the Information and Guidelines for bidders (Section – II: Technical Bid), which states as follows:-

3.4 If the bidder is a limited company or a corporation, the application shall be signed by a duly authorized person holding power of attorney for signing the application accompanied by a copy of the power of attorney. The bidder should also furnish a copy of the Memorandum of Articles of Association duly attested by a Public Notary.”

3. Clause 3.4 of the Information and Guidelines for bidders required the bid documents to be signed by a duly authorised person holding a Power of Attorney, if the bidder was a limited company or a corporation. The bid documents were also to be accompanied by a copy of the Power of Attorney. The bidders were also required to furnish Memorandum of Articles of Association duly attested by a Public Notary.

4. The petitioner’s case is that the petitioner is a Private Limited Company, which will come under the word “Corporation”. The petitioner being a company can be duly represented in contract matters by its Director, in terms of Section 21 of the COMPANIES ACT , 2013.

5. In the present case pertaining to the NIT dated 07.03.2025, for “construction of a Training Institute at Dhamdhama, Nalbari in Engineering, Procurement and Construction (EPC) Mode-I Basis”, the petitioner company was represented by its Director, who had signed the tender documents. However, the Director had not been given any Power of Attorney by the company, though there was a board resolution, authorising the Director to sign the bid documents.

6. The petitioner’s counsel submits that as the Director can represent a company in contractual matters, in terms of Section 21 of the COMPANIES ACT , 2013, there was no requirement for the Director, who had signed the bid documents, to have a Power of Attorney. As such, no copy of a Power of Attorney had been furnished by the petitioner.

7. The petitioner’s counsel submits that Clause 20 of the “Information and Instructions for contractors for e-Bidding” provided the list of documents to be filled in by the bidders, scanned and uploaded within the period of bid submission. The said Clause 20 provided for various documents. However, Clause 20 did not make a mention of the requirement of furnishing a copy of the Power of Attorney or Memorandum of Articles of Association duly attested by a Public Notary. As such, the petitioner’s bid could not have been rejected, just because the Power of Attorney and Memorandum of Articles of Association had not been uploaded/furnished by the petitioner.

8. The petitioner’s counsel submits that the registration of the petitioner as a company is granted only after verification of documents and credentials, including the Memorandum of Articles of Association made by the petitioner. The certificate of incorporation is also based on such Articles of Association. As the petitioner was already registered with the PWD (Building), Assam, there was no requirement for the petitioner

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