Tender Dispute - The Legal Chamber

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 b...

The Supreme Court ruled that tender conditions must be explicit and unambiguous. A bidder cannot be disqualified for non-submission of a document not expressly mandated by the tender. The tendering authority must act fairly and cannot impose hidden requirements, especially when a submitted certificate adequately demonstrates compliance with the stated criteria. Facts Of The Case: The case involved a tender issued by Madhya Pradesh Power Generating Co. Ltd. (MPPGCL) for coal beneficiation work. Maha Mineral, the appellant, submitted its bid relying on its past experience as a 45% partner in a Joint Venture (JV) named Hind Maha Mineral LLP. To prove this, it submitted a work execution certificate from the Maharashtra State Mining Corporation (MSMC), which explicitly stated its 45% share an...

Tag: Tender Dispute

Clarity in Tender Documents is Key: Supreme Court Quashes Bid Rejection Over Ambiguous Term

Supreme Court Rules: Tender Conditions Must Be Clear, Can’t Reject Bids on Unstated Requirements