2026LatestLegalSupreme Court

From Paper to Proof – SC Validates E-Payment Tender Bid Security

Judgment dated 12.10.2026 of the Supreme Court in SLP (Civil) No.25855 of 2026 of Hardev Construction Private Limited  Vs.  Union of India and others

The appellant’s bid for the project ‘Engineering Procurement and Construction (EPC) of Construction of guide bunds, Launching Aprons and Associated River Protection Works etc. in connection with Bikramshila-Katareah New Line Rail Link Project on EPC Mode”-Bid/ Package No. ECR-CAO-C S-EPC-05-25-26 dated 06.01.2026’ was rejected for reason of non-submission of original of the Bid Security furnished; stipulated vide Clause 2.20.6 (ii) of the Request For Proposal (RFP), as indicated in the e-portal of the respondent.

Learned Counsel for the appellant points out that the rejection was only on the ground that the appellant had not submitted the original of the Bid Security furnished, which in the case of the appellant was submitted through the e payment Gateway of Authority. The Bid Security was remitted to the account of the respondent through e-payment, the receipt of which in the digital form was scanned and uploaded along with the bid.

The rejection was only on the ground of violation of Clause (ii). Clause (ii) prescribes that the form in which the Bid Security is furnished, should be delivered in person, physically, to the official nominated, as indicated in the tender document. The appellant’s contention is that there is no question of production of an original,since the payment has already gone into the coffers of the respondents and the digital receipt has been uploaded along with the tender document. 8. We are perfectly in agreement with the contention of the appellant, especially looking at the various forms in which the Bid Security can be furnished; a Bank Guarantee/ Account Payee Demand Draft/Fixed Deposit Receipt/ Banker’s Cheque, unless physically furnished to the respondent, there can be no lien exercised on the Bid Security. It is, hence, the stipulation that at the time of application, the scanned copy should be uploaded and later the original should be handed over to the nominated official. Insofar as the appellant is concerned, the money was deposited to the account of the respondents and there is nothing further required to be produced insofar as the e payment made, especially when the digital payment receipt had been uploaded along with the bid document.

We are convinced that here, there is a clear perversity; insofar as an e-payment was made, as required by the tender document, the digital receipt of which was scanned and uploaded, rejected only since the original was not produced; which is an impossibility. Rigid adherence to the letter of a document cannot be countenanced, especially when there is a clear impossibility in compliance of the same. As we noticed, Bid Security, when furnished in all other forms, cannot be enforced, unless the original comes into the hands of the respondents. However, insofar as the e-payment is concerned, the money has already been transferred to the account of the respondents, and they have full control over it.

Leave a Reply

Your email address will not be published. Required fields are marked *

I HAVE READ THE DISCLAIMER AND AGREE TO IT.

User Acknowledgement

By proceeding further and clicking on the "AGREE" button herein below, I acknowledge that I of my own accord wish to know more about LegalDeli for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from LegalDeli or any of its members to create an Attorney-Client relationship through this knowledge site. I further acknowledge having read and understood the Disclaimer below.

Disclaimer
About: This knowledge-site (www.LegalDeli.in) is owned and operated by LegalDeli (“LD”), and is a resource for your informational and educational purposes only.

No Warranty: LD does not warrant that any content or information contained on this knowledge-site is accurate, correct, complete or up-to-date, and hereby disclaims any and all liability to any person for any actual or threatened loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or otherwise. LD assumes no liability for the interpretation and/or use of the content and/or information contained on this knowledge-site, nor does it offer any warranty of any kind, either expressed or implied in relation to such content or information.

Third-Party Links: LD does not intend that links / URLs contained on this knowledge-site re-directing users to third party websites be considered as referrals to, endorsements of, or affiliations with any such third party website operators. LD is not responsible for, and makes no representations or warranties, express or implied, about the content or information contained on such third party websites to which links may be provided on this knowledge-site.

No Legal Advice: By clicking ‘I agree’ and proceeding further, you acknowledge, represent and undertake that you on your own accord wish to know more about LD, its capabilities and research content and information contained on the knowledge-site, for your own knowledge and personal use. The content and information contained on this knowledge-site should not be construed as nor relied upon as legal advice. You as a reader or recipient of content or information contained in this knowledge-site should not act, nor refrain from acting, based upon any or all of such content or information, but should always seek the advice of competent legal counsel licensed to practice the relevant law in the appropriate jurisdiction.

No Attorney-Client Relationship: This knowledge-site is not intended to be and you should not consider the content or information contained therein to be an advertisement, solicitation, inducement or invitation for an Attorney-Client relationship. Transmission, receipt or use of this knowledge-site, including content and information contained therein, does not constitute nor create an Attorney-Client relationship between LD and you.