Tender: Tender process – Security interest deposit – Forfeiture of – Bidder participated in the tender process – Bidder sought permission to modify his price bid on the ground of mistake committed in offering the price – Howver, the bidder disqualified – Corporation then decided to invoke the bank guarantees furnished by the bidder towards the security interest deposit invoking clause 14.5(b) of the tender document – Writ petition by the bidder challenging the decision of the Corporation to forfeit the security interest deposit by invoking the bank guarantees – Writ petition dismissed by the High Court holding that in a contractual matter, the writ petition u/Art. 226 not maintainable – Correctness of – Held: High Court justified in dismissing the writ petition – As per Clause 14.5 of the tender document, the security deposit submitted by the bidders would be forfeited by the Corporation in the event bidder varies or modifies the bid in a manner not acceptable to ONGC during the validity period or any extension thereof duly agreed by the bidder – Action of the Corporation in consonance with the terms and conditions of the tender document – It cannot be said that it was not a case of modification of the bid but an arithmetical error in calculation which was sought to be corrected – Furthermore, the request for modification/variation of the bid offer was made during the validity period, thus, clause 14.5(b) of the tender document applicable – In view thereof, order passed by the High Court upheld. Kailash Nath Associates Vs. Delhi Development
Authority and Anr. (2015) 4 SCC 136 – referred to.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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