M/S OM GURUSAI CONSTRUCTION COMPANY versus M/S V.N. REDDY & ORS

M/S OM GURUSAI CONSTRUCTION COMPANY versus M/S V.N. REDDY & ORS

Deposit of additional performance security on 17.03.2021 complied with Clause 2.22.0(ix) because the two working day requirement could not be met due to weekend days and a nationwide strike of nationalised bank employees on 15–16 March 2021, the tendering authority verified the non-operation of banks and legitimately accepted the deposit, there was no mala fide or perversity in the authority's decision and the High Court erred in setting aside the work order.

Parties
Appellant: M/S OM GURUSAI CONSTRUCTION COMPANY; Respondent: M/S V.N. REDDY & ORS.
Jurisdiction
India
Judgment Date
23 August 2023
Procedural Posture
Civil Appeal / Appeal Decided by Supreme Court
Outcome
Appeal allowed; impugned order set aside
Legal Topics
Performance Security, Tender Conditions, Judicial Review Under Article 226, Bank Strike and Impossibility, Interpretation of Tender Documents, Forfeiture of EMD
Tender and Procurement Administrative Law Contract Law Constitutional Law Performance Security Tender Conditions Judicial Review Under Article 226 Bank Strike and Impossibility +2 more

Case Brief

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Parties

M/S OM GURUSAI CONSTRUCTION COMPANY

Appellant

M/S V.N. REDDY & ORS.

Respondent

Procedural Posture

Civil Appeal / Appeal Decided by Supreme Court

Legal Issues

  1. 1 Whether Clause 2.22.0(ix) of the tender conditions is rigid and unalterable even where compliance was rendered impossible by a banking strike
  2. 2 Whether acceptance of additional performance security on 17.03.2021 complied with Clause 2.22.0(ix)
  3. 3 Whether the High Court was justified in setting aside the work order on the ground of breach of Clause 2.22.0(ix)

Ratio Decidendi

Deposit of additional performance security on 17.03.2021 complied with Clause 2.22.0(ix) because the two working day requirement could not be met due to weekend days and a nationwide strike of nationalised bank employees on 15–16 March 2021, the tendering authority verified the non-operation of banks and legitimately accepted the deposit, there was no mala fide or perversity in the authority's decision and the High Court erred in setting aside the work order.

Court Disposition

Appeal allowed; impugned order set aside

Orders

  • Impugned order set aside
  • Writ Petition No. 1787 of 2021 on the file of the High Court of Judicature at Bombay, Nagpur Bench, Nagpur dismissed