NDLI: Vidarbha Irrigation Development Corporation Vs. M/s Anoj Kumar Agarwala & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Tenders Essential tender condition Non-compliance of
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Disposed Off
Headnote	Tenders – Essential tender condition – Non-compliance of – Tender called by the appellant on 06.01.2018 for balance earthwork to be done in a canal – Tender was ultimately replied to by three persons – Clause 2.22 of the tender conditions inter alia stated that bank guarantee that was to be furnished had to be valid up to one month after the defect liability period, which was for a period of 40 months – Bank guarantee furnished by Respondent No.2 was initially furnished only for a period of six months – Bids were opened on 06.04.2018 – One day later, Respondent No. 2 sought to make up this deficiency by adding a period of 34 months to the bank guarantee – Bid of Respondent No. 2 being the lowest bid was accepted – Appellant condoned the initial bank guarantee given by Respondent No. 2 for an admittedly incorrect period of 6 months – Propriety of – Held: Clause 2.35 made it clear that a substantially responsive bid was one which conforms to all terms, conditions and specifications without any material deviation – Inter alia, a material deviation is one which limits, in any substantial way, or is inconsistent with the bidding documents or the employer’s rights or bidder’s obligations under the Contract – A bank guarantee, for a period of six months and not for a period of 40 months, would not only be directly inconsistent with the bidding documents but would also be contrary to the employers’ right to a bank guarantee for a longer period – Since a material deviation from the terms and conditions of the tender document was made by Respondent No. 2, such bid would have to be considered as not substantially responsive and ought to have been rejected by the employer – When an essential tender condition which had to be strictly complied with was not so complied with, the appellant would have no power to condone lack of such strict compliance – Any such condonation, as has been done, would amount to perversity in the understanding or appreciation of the terms of the tender conditions, which must be interfered with by constitutional court – Judgment of the High Court, insofar as para 8 is concerned, set aside – Work now be performed by the Respondent No. 1 (one of the bidder) at the bid of Rs. 39.15 Crores that was the bid of Respondent No.2.
Judge	Hon'ble Mr. Justice R.F. Nariman
Neutral Citation	2019 INSC 83
Petitioner	Vidarbha Irrigation Development Corporation
Respondent	M/s Anoj Kumar Agarwala & Ors.
SCR	[2019] 2 S.C.R. 493
Judgement Date	2019-01-23
Case Number	1049

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