The Supreme Court held that a tender condition must be explicitly stated. The rejection of a bid for not submitting a solvency certificate from a District Magistrate was invalid, as the tender notice did not specify this requirement. Authorities cannot reject a bid on grounds not stated in the tender documents.
Facts Of The Case:
The dispute arose from a tender floated by the Krishi Utpadan Mandi Parishad (Mandi Parishad) to lease a banquet hall and terrace lawn for ten years. The appellant, Kimberley Club Pvt. Ltd., submitted its bid alongside other parties, including the fifth respondent, who emerged as the successful bidder. The Mandi Parishad rejected the appellant’s technical bid on a specific ground: the ‘haisiyat praman patra’ (solvency certificate) it submitted was issued by a private professional architect, rather than by the office of the District Magistrate. Aggrieved, the appellant filed a writ petition before the Allahabad High Court, contending it was the highest bidder and its disqualification was unlawful. The High Court dismissed the petition, upholding the rejection by reasoning that a solvency certificate must be issued solely by the District Magistrate. The appellant then appealed to the Supreme Court via a special leave petition. The core factual contest centered on whether the tender’s terms explicitly mandated that the solvency certificate be issued by a District Magistrate, or if a valuation certificate from a competent private valuer was acceptable.
Procedural History:
The procedural history commenced with the appellant filing a writ petition before the Lucknow Bench of the Allahabad High Court, challenging the rejection of its technical bid by the Krishi Utpadan Mandi Parishad. The High Court dismissed the petition, upholding the rejection. The appellant then invoked the Supreme Court’s jurisdiction by filing a Special Leave Petition (SLP(C) No. 20557/2021). The Supreme Court granted leave, issued notice, and imposed an interim order restraining further work under the tender pending its final decision. After hearing the parties, the Court allowed the appeal, set aside the High Court’s order, and remanded the matter back to the Mandi Parishad for a fresh consideration of the appellant’s technical bid in accordance with its directions.
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Court Observation:
The Supreme Court made several key observations. It noted that the Notice Inviting Tender did not explicitly require the ‘haisiyat praman patra’ to be issued solely by a District Magistrate. The Court held that tender conditions must be clear and unambiguous, and the authority could not imply a condition not stated in the document. It further rejected the respondent’s attempt to justify the rejection on new grounds regarding asset encumbrances raised belatedly in court, stating that a rejection order must stand only on the grounds originally cited. The Court also observed that the valuation certificate from a qualified professional, indicating a net worth far exceeding the tender requirement, could not be disregarded on an invalid technicality.
Final Decision & Judgement:
The Supreme Court allowed the appeal and set aside the impugned judgment of the High Court. It quashed the rejection of the appellant’s technical bid, holding it was dehors the terms of the tender. The Court remanded the matter to the first respondent, Krishi Utpadan Mandi Parishad, with directions to reconsider the appellant’s technical bid. The Mandi Parishad was instructed to assess whether the valuation certificate, indicating the appellant’s net worth free of encumbrances, satisfied Clause 18 of the tender. If satisfied, it must accept the technical bid and then conduct fresh negotiations between the appellant and the successful bidder to finalize the tender award.
Case Details:
Case Title: Kimberley Club Pvt. Ltd. Versus Krishi Utpadan Mandi Parishad & Ors. Citation: 2025 INSC 1276 Appeal Number: (@ SLP (C) No. 20557/2021) Date of Judgement: October 31, 2025 Judge/Justice Name: Justice Joymalya Bagchi