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.
