JUDGMENT

SHARMA, J. :— Special Leave is granted.

2. In response to a notice inviting tenders by the Diesel Locomotive Works, Indian Railways, in connection with disposal of one lot of Ferrous Scrap, a number of tenders were submitted by the appellant, the respondent No. 1 and other intending purchasers. The tenders of the respondent No. 1 and some other bidders were rejected as defective and the appellants offer being the highest was accepted, and accordingly the appellant deposited a sum of about Rs. 15 lacs. The respondent No. 1 challenged the decision by a writ petition before the Allahabad High Court contending that there was no defect in its tender and that the tender of the appellant could not have been validly accepted as the necessary condition of payment of Rs. 50,000/- as earnest money with the tender had not been complied with. The application was resisted on the grounds (i) that the respondent No. 1 having not deposited the earnest money at all was not entitled to a consideration of its tender and has no locus standi in the present matter; and (ii) that the appellant had substantially complied with the requirement by sending with its tender a Bankers Cheque marked and ce