VIDARBHA IRRIGATION DEVELOPMENT CORPORATION versus M/S ANOJ KUMAR AGARWALA & ORS.

VIDARBHA IRRIGATION DEVELOPMENT CORPORATION versus M/S ANOJ KUMAR AGARWALA & ORS.

A bid which materially deviates from essential tender conditions—such as furnishing a bank guarantee for the wrong period—must be rejected as non-responsive, and the employer has no power to condone such lack of strict compliance; such condonation amounts to perversity and warrants interference by a constitutional court.

Parties
Appellant: Vidarbha Irrigation Development Corporation; Respondent No.1: M/S Anoj Kumar Agarwala; Respondent No.2: Respondent No.2; Respondent No.3: Respondent No.3
Jurisdiction
India
Judgment Date
23 January 2019
Procedural Posture
Civil Appeal / Judgment
Outcome
appeals disposed
Legal Topics
Tender Conditions, Material Deviation, Judicial Review, Performance Security
Public Contracts Administrative Law Tender Conditions Material Deviation Judicial Review Performance Security

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Vidarbha Irrigation Development Corporation

Appellant

M/S Anoj Kumar Agarwala

Respondent No.1

Respondent No.2

Respondent No.2

Respondent No.3

Respondent No.3

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether a material deviation from essential tender conditions can be condoned after submission of bid
  2. 2 Whether a bid with a deficient bank guarantee period is substantially responsive under the tender terms

Ratio Decidendi

A bid which materially deviates from essential tender conditions—such as furnishing a bank guarantee for the wrong period—must be rejected as non-responsive, and the employer has no power to condone such lack of strict compliance; such condonation amounts to perversity and warrants interference by a constitutional court.

Court Disposition

appeals disposed

Orders

  • Judgment of the High Court, insofar as para 8 is concerned, is set aside.
  • Work to be performed by Respondent No. 1 at the bid amount of Rs. 39.15 crores.