PODDAR STEEL CORPORATION versus GANESH ENGINEERING WORKS AND OTHERS

PODDAR STEEL CORPORATION versus GANESH ENGINEERING WORKS AND OTHERS

Strict literal compliance of every tender condition is not required; the authorities may waive ancillary or technical conditions in appropriate cases. Since the appellant's banker's cheque was verified and fulfilled the tender's objective, acceptance was valid, and the authorities had power to waive the technical requirement of SBI-only drafts.

Parties
Appellant: Poddar Steel Corporation; Respondent No. 1: Ganesh Engineering Works
Jurisdiction
India
Judgment Date
06 May 1991
Procedural Posture
Civil Appeal / Appeal by Special Leave From Judgment and Order of Allahabad High Court
Outcome
Appeal allowed; impugned High Court judgment set aside; respondent's writ petition dismissed with costs throughout.
Legal Topics
Tender Process, Waiver of Technical Conditions, Judicial Review Under Article 226, Appeal Under Article 136, Railway Contracts
Constitutional Law Contract Law Administrative Law Tender Process Waiver of Technical Conditions Judicial Review Under Article 226 Appeal Under Article 136 Railway Contracts

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Parties

Poddar Steel Corporation

Appellant

Ganesh Engineering Works

Respondent No. 1

Procedural Posture

Civil Appeal / Appeal by Special Leave From Judgment and Order of Allahabad High Court

Legal Issues

  1. 1 Whether strict literal compliance of tender notice conditions is required for all terms or only essential conditions?
  2. 2 Was Diesel Locomotive Works entitled to waive literal technical compliance for earnest money payment method in the tender?
  3. 3 Was the acceptance of appellant's tender with a cheque from a bank other than SBI valid?

Ratio Decidendi

Strict literal compliance of every tender condition is not required; the authorities may waive ancillary or technical conditions in appropriate cases. Since the appellant's banker's cheque was verified and fulfilled the tender's objective, acceptance was valid, and the authorities had power to waive the technical requirement of SBI-only drafts.

Court Disposition

Appeal allowed; impugned High Court judgment set aside; respondent's writ petition dismissed with costs throughout.

Orders

  • Impugned judgment of Allahabad High Court set aside.
  • Writ petition filed by respondent no. 1 before High Court dismissed.