Summary
The Court upheld forfeiture of a bidder’s security deposit under a gas-sale tender. The tender permitted forfeiture where the bidder varied or modified its bid in a manner unacceptable to ONGC during the validity period. The bidder’s communication sought a change arising from misunderstanding the price calculation, rather than correction of an arithmetical error. The Court found the tender clause applicable and dismissed the special leave petition.
Issues
- Whether ONGC could forfeit the security deposit when the bidder sought to modify its price offer.
- Whether the proposed change was merely correction of an arithmetical error outside the forfeiture clause.
Held
- The tender expressly authorised forfeiture when a bidder varied or modified its offer in a manner unacceptable to ONGC during bid validity or an agreed extension. The Corporation’s action conformed to that condition. (¶ 5)
- The contention that only an arithmetical correction was sought was factually incorrect. The bidder’s communication referred to misunderstanding the bidding-price calculation; the Court also rejected the contention that the request fell outside the relevant validity period. (¶¶ 6, 7)
- The High Court’s dismissal on the merits disclosed no error. The disposition did not establish a general bar to writ jurisdiction in contractual matters. (¶¶ 2, 8)
Result
Special leave petition dismissed; the High Court’s dismissal of the challenge to forfeiture remained undisturbed.