Authority: Supreme Court of India, Civil Appellate Jurisdiction (Bench of J. K. Vinod Chandra and J. B. Pardiwala)

Order Date: October 12, 2026

Case Overview

  • Parties: Hardev Construction Private Limited (appellant) vs Union of India & others, including the Ministry of Railways and the successful third respondent.
  • Nature of Proceeding: Civil appeal (SLP (C) No.25855 of 2026) challenging the rejection of the appellant’s bid for the EPC package "Engineering Procurement and Construction of Guide Bunds, Launching Aprons and Associated River Protection Works…" for the Bikramshila‑Katareah New Line Rail Link Project.
  • Background: The bid (Package No. ECR‑CAO‑C‑S‑EPC‑05‑25‑26) was submitted on 06.01.2026. The bid was rejected because the appellant did not submit the original bid security as mandated by Clause 2.20.6(ii) of the RFP. The Patna High Court upheld this rejection, which is now appealed.
  • Appellant’s Argument: The bid security was paid through the e‑payment gateway of Authority; the amount was credited to the respondent’s account and a scanned receipt was uploaded on the e‑procurement portal. The appellant contended that physical submission of an original document was impossible for e‑payment and that the receipt sufficed.
  • Respondent’s Argument: Clause 2.20.6(ii) expressly requires the original security to be delivered physically to the nominated official; therefore, the rejection was proper.
  • Legal Reasoning: The Court examined Clause 2.20.6, noting that while various forms of bid security are permissible, the clause still mandates physical delivery of the original. However, the Court held that for e‑payment, the money had already been transferred to the respondent’s account, rendering the demand for a physical original impossible. Citing Prakash Asphaltings and Toll Highways (India) Ltd. v. Mandeepa Enterprises, the Court emphasized that tender documents cannot be ignored, but also recognized an exception where strict compliance is impossible or would be perverse.
  • Observations: The Court found “clear perversity” in rejecting the bid solely because the original document could not be produced when the payment was already effected. Rigid adherence to the clause was deemed untenable.

Final Outcome

  • The appeal is allowed; the order rejecting Hardev Construction’s bid is set aside.
  • The contract is to be awarded to Hardev Construction Private Limited.
  • Respondents (Union of India & Ministry of Railways) shall facilitate the e‑payment of the bid security within two weeks from the order date; if technical difficulties arise, the appellant may submit the security in any other acceptable form within an additional two‑week period.
  • Upon receipt of the bid security, the appellant’s financial bid shall be opened and considered alongside other bids, and the tender shall be finalized per the stipulated conditions.
  • The amount previously deposited in the e‑portal has been refunded to the appellant.
  • Any pending applications, if any, are to be rejected.

Topics: Public Procurement; Railway Infrastructure