Amended corrected Bank Guarantee – Mistake in submission of Bank Guarantee for tender
On 3.2.2025, the Respondent invited a tender for civil works of Pune Satara railway station for Rs.12.83 crores. The bids were to be submitted during 18.2.2025 to 4.3.2025 with bid security of Rs.64,91,600/-. If bid security was given in the form of bank guarantee, the same would remain valid for 90 days beyond the tender validity period.
The petitioner submitted the bid and the bank guarantee with validity upto 30.7.2025. The petitioner also submitted bids for other tenders.
On 21.4.2025, the tender was rejected. The petitioner learnt that the bank guarantee was less than 90 days from the validity period of respective tenders.
On 24.4.2025, the petitioner submitted an amended bank guarantee of Rs.64,69,600/- with expiry date of 30.9.2025. However, there was no response.
Paragraph 84 of the American Jurisprudence (2nd Edition, Volume 64, page 944) as referred to in the case of WB State Electricity Board case (2001 (2) SCC 451), reads: –
“As a general rule, equitable relief will be granted to a bidder for a public contract where he has made a material mistake of fact in the bid which he submitted, and where, upon the discovery of that mistake, he acts promptly in informing the public authorities and requesting withdrawal of his bid or opportunity to rectify his mistake particularly where he does so before any formal contract is entered into.”
HELD that no prejudice would be caused to the Respondent if the amended bank guarantee submitted by the petitioner is accepted and the petitioner is allowed to correct the mistake which is bona fide. The petitioner carried a wrong impression as regards interpretation of the relevant provision and immediately on realizing the mistake, the Petitioner has taken steps to correct the mistake.
Judgment dated 8.5.2025 of the High Court of Bombay in Writ Petition [L] No.14272 of 2025 of M/s. S.A.Yadav Vs. Union of India through Chief Engineer Central Railway
