HomeWhat's TrendingHighest Bidder Loses Out Due to Faulty Scrutiny by Allahabad High Court

Highest Bidder Loses Out Due to Faulty Scrutiny by Allahabad High Court

Allahabad High Court awards tender to 2nd highest bidder after 1st bidder failed to submit docs & committee missed it. The court highlights the importance of proper scrutiny in e-tendering.

In a recent legal development, the Allahabad High Court has intervened to rectify a procedural flaw in a tendering process, ultimately awarding the tender to the highest bidder who exceeded the reserve price. The court’s decision stemmed from the tendering committee’s failure to diligently scrutinise the tender documents, thereby displaying a significant lapse in their responsibilities.

The case unfolded when a petitioner participated in an e-tender cum e-auction for a short-term permit, concerning specific land parcels identified as Gata No.62 and 63/1, covering an area of 42.00 acres in Village Khapatiha Kala, Tehsil Pailani, District Banda. Despite the petitioner submitting the second-highest bid, they raised concerns through a formal application. The petitioner pointed out that the highest bidder had not provided self-attested copies of essential documents such as the Aadhaar Card, PAN card, and Character Certificate, rendering their bid potentially invalid.

Responding to this discrepancy, the Chief Treasury Officer of Banda recommended a fresh e-auction, citing the inadequacies in the initial scrutiny process. Consequently, the tender, in which the petitioner’s bid qualified, was canceled, and a new notice was issued. Dissatisfied with this turn of events, the petitioner approached the High Court to challenge the validity of the fresh notice.

Upon examining the instructions provided by the respondents and scrutinising the committee’s actions, the Court observed a clear failure on the part of the committee to fulfill its duties adequately. Notably, the financial bid of the highest bidder, who failed to submit proper documentation, was accepted due to the committee’s lax approach.

In light of these findings, the Court ruled in favor of the petitioner, emphasising the validity of their bid and the unfairness of penalising them for the committee’s oversight. Justices Anjani Kumar Mishra and Jayant Banerji, presiding over the case, acknowledged the petitioner’s argument, highlighting the negligence of the committee.

Consequently, the Court directed that the tender be awarded to the petitioner, considering their bid as the highest among all valid bids submitted. This decision underscores the importance of procedural diligence in tendering processes and ensures fairness and transparency in such matters.

‘This case emphasises the crucial role of proper document verification in tender processes. Businesses participating in tenders should ensure they have all necessary documents to avoid disqualification’, says a Vakilsearch Legal Expert

The Allahabad High Court’s decision serves as a reminder for both tendering authorities and participants.  Following proper procedures and ensuring thorough document verification is vital for a fair and transparent tender process. Vakilsearch offers expert legal services to businesses navigating complex tender processes. Contact us today to ensure your bids are compliant and successful.

Akash G Varadaraj