Wednesday, September 23, 2026
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SC on Highest Tender Bid Vs. Eligibility Highest Bidder

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Judgment dated 21.9.2026 of the Supreme Court in SLP (Civil) No.22161 of 2026 of Micky Traes  Vs.  L.R.Y. Labour Contractor and others with connected matters.

A tender begins with competition, but it proceeds upon rules.

On evaluation, the technical bid of  H1 Bidder was found responsive and its financial bid being the highest was accepted.

The H2 Bidder addressed an e-mail to the Secretary, Tender Opening Committee, Market Committee, Ludhiana, stating that the H1 Bidder did not possess the requisite experience of collection of parking fees or user charges and that the Board had erred in issuing an Enlistment Certificate dated 24.02.2026 in its favour. The objection notwithstanding, a LoA was issued to the H1 Bidder on 20.03.2026.

The submission that the H1 Bidder’s bid, being higher by about Rs.1.5 crore, ought to be preferred in the interest of the public exchequer, does not assist the H1 Bidder. Revenue considerations cannot cure ineligibility. Bids can be compared only among bidders who are eligible to be compared in the first place; to hold otherwise would be to allow every eligibility condition to yield to the highest figure quoted, and would render the tender document, and the enlistment instructions framed to secure competence and accountability in the collection of public revenue, wholly illusory. The public interest that the H1 Bidder invokes is served, not disserved, by holding the Committee to the conditions it has itself prescribed.

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