VidhiSangh

Supreme Court of India · 04/10/2024

BANSHIDHAR CONSTRUCTION PVT. LTD. versus BHARAT COKING COAL LIMITED & OTHERS

[2024] 10 S.C.R. 425 · 2024 INSC 757

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Summary

The Supreme Court set aside BCCL's rejection of the appellant's technical bid and the award of a coal mining contract to Respondent No. 8, holding that the bid was wrongly rejected because the power of attorney was notarised a day after the bid documents were signed, while Respondent No. 8's bid, which lacked the audited annual reports mandated by Clause 10 of the NIT, was accepted and allowed to be cured after the technical bids were opened; the decision was arbitrary, discriminatory and violated Article 14.

Issues

  1. Whether BCCL was justified in rejecting the appellant's technical bid because the bid documents were signed on 13.11.2023 while the power of attorney dated 07.11.2023 was notarised on 14.11.2023.
  2. Whether BCCL could accept the technical bid of Respondent No. 8, which did not include the audited annual reports required by Clause 10 of the NIT, and call for them after the technical bids were opened.
  3. Whether the Court should decline to interfere because the project is a large infrastructure project and an agreement had already been signed with the successful bidder's SPV.

Provisions considered

Held

Result

Appeal allowed; BCCL's decision dated 06.05.2024 rejecting the appellant's technical bid and declaring Respondent No. 8 the successful bidder set aside along with all actions and agreements made under it; BCCL free to start a fresh tender process in accordance with law.

Judgment PDF: Supreme Court of India, [2024] 10 S.C.R. 425.