{"id":261490,"date":"2022-02-11T11:00:03","date_gmt":"2022-02-11T05:30:03","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=261490"},"modified":"2022-02-18T09:53:37","modified_gmt":"2022-02-18T04:23:37","slug":"if-the-interpretation-of-a-tender-document-is-not-accepted-by-constitutional-court-can-court-interfere-with-the-interpretation","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/11\/if-the-interpretation-of-a-tender-document-is-not-accepted-by-constitutional-court-can-court-interfere-with-the-interpretation\/","title":{"rendered":"If the interpretation of a tender document is not accepted by Constitutional Court, can Court interfere with the interpretation? SC answers"},"content":{"rendered":"

Supreme Court: The Division <\/strong>Bench of Dinesh Maheshwari and Vikram Nath, JJ., while addressing a matter with regard to the tender document, made an observation that,<\/p>\n

\n

\u201cEvery decision of the administrative authority which may not appear plausible to the Court cannot, for that reason alone, be called arbitrary or whimsical.\u201d<\/span><\/p>\n<\/blockquote>\n

Two appeals against the same decision of the Delhi High Court were filed and taken up for disposal.<\/p>\n

In the said decision, Delhi High Court had disapproved the technical disqualification and consequential rejection of the technical bid of the petitioner in respect of a tender floated by the appellant.<\/p>\n

Another appellant was said to be the bidder (Agmatel) whose offer was accepted by NVS after technically disqualifying the writ petitioner.<\/p>\n

Crux<\/span><\/h4>\n

Whether the Delhi High Court was justified in interfering with the view taken by the tender inviting authority in rejection of the technical bid of writ petitioner for want of fulfilment of \u2018Past performance\u2019 criterion about supply of \u2018same or similar Category Products\u2019 of 60% of bid quantity in at least one of the last 3 financial years?<\/p>\n

Background<\/span><\/h4>\n

The dispute revolved around a Notice Inviting Tenders (NIT), as issued by the appellant-NVS on the Government online portal i.e., Government e-market Place for the supply of 68,940 Tablets for school children.<\/p>\n

The terms and conditions that the Court is concerned with from the NIT were pertaining to \u2018Experience\u2019 and \u2018Past Performance\u2019 of the bidders.<\/p>\n

During the pendency of the writ petition, it was informed by the tender inviting authority that the contract in question had been awarded to the other bidder who was found qualified and successful; and the application for impleadment made by the said successful bidder-Agmatel was allowed by the High Court.<\/p>\n

Analysis, Law and Decision<\/span><\/h4>\n

Interpretation of Tender Document: Relevant Principles<\/em><\/span>\u00a0<\/em><\/p>\n

The scope of judicial review in contractual matters, and particularly in relation to the process of interpretation of the tender document, has been the subject matter of discussion in various decisions of this Court.<\/p>\n

Supreme Court remarked that,<\/p>\n

\n

\u201cAuthor of the tender document is taken to be the best person to understand and appreciate its requirements; and if its interpretation is manifestly in consonance with the language of the tender document or subserving the purchase of the tender, the Court would prefer to keep restraint.\u201d<\/span><\/p>\n<\/blockquote>\n

Adding to the above, Court stated that the Court cannot technically evaluate or compare and even if the interpretation given to the tender document by the person inviting offers is not as such acceptable to the Constitutional Court, that by itself would not be a reason for interfering with the interpretation given.<\/p>\n

Supreme Court opined that the impugned Judgment could not be sustained.<\/p>\n

\n

\u201c\u2026.which particular product was to be treated as similar category product, could not have been a matter of interpretative exercise by the Court, particularly when the view taken by the tender inviting authority and its evaluation committee has not been shown to be absurd or irrational or suffering from mala fide.\u201d<\/span><\/p>\n<\/blockquote>\n

Further, the Bench observed that the elaborative and in-depth analysis of the features and categorization of the two products i.e., Smart Phones and Tablets was not called for.<\/p>\n

Adding to the above, Court stated that the writ court should not substitute its preferred interpretation of the tender condition with the one adopted by the author of the tender document and the person procuring the product, who has to be regarded as the best person to understand its requirements.<\/p>\n

Supreme Court observed from the facts and submission that, even if some of the organisations, in relation to their requirements, procured tablets and smart phones both under the same tender process or even used these expressions \u201cinterchangeably\u201d or \u201cinterconnected\u201d, that by itself cannot lead to a definite conclusion by the Court that \u201cSmart Phones\u201d and \u201cTablets\u201d are to be taken as similar category products for the tender process in question.<\/p>\n

When can Courts interfere in matters of Contracts?<\/span><\/p>\n

The process of interpretation of terms and conditions is essentially left to the author of the tender document and the occasion for interference by the Court would arise only if the questioned decision fails on the salutary tests laid down and settled by this Court in consistent decisions, namely, irrationality or unreasonableness or bias or procedural impropriety.<\/p>\n

\n

\u201cMere elaboration by the tender inviting authority as regards its reasons and basis of the decision cannot be said to be that of inconsistency.\u201d<\/span><\/p>\n<\/blockquote>\n

Court held that, the terms of tender in the present case had been clear, and they were ascertainable with specificity available on the very portal on which NIT was issued.<\/p>\n

In view of the above discussion, it was concluded that the petition be dismissed, and the impugned order be set aside. [Agmatel India (P) Ltd. v. Resoursys Telecom, 2022 SCC OnLine SC 113<\/b><\/a>, decided on 31-1-2022]<\/p>\n","protected":false},"excerpt":{"rendered":"

Supreme Court: The Division Bench of Dinesh Maheshwari and Vikram Nath, JJ., while addressing a matter with regard to the tender document, <\/p>\n","protected":false},"author":8808,"featured_media":261504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[33250,42003,4881,29785,42834,46326,5363,48589,48588],"class_list":["post-261490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-bid","tag-contracts","tag-education","tag-law","tag-legal-news","tag-smart-phones","tag-supreme-court","tag-tablets","tag-tender-document"],"yoast_head":"\nIf the interpretation of a tender document is not accepted by Constitutional Court, can Court interfere with the interpretation? 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Supreme Court explains where the virtue itself turns into vice","author":"Editor","date":"April 27, 2021","format":false,"excerpt":"Supreme Court: The Division Bench comprising of Rohinton Fali Nariman* and B.R. Gavai, JJ., addressed the issue of overstepping of review jurisdiction by the High Courts in policy matters. The Bench expressed, \u201cJudicial review in these matters is equivalent to judicial restraint in these matters\u2026the writ court does not have\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/sc-2-7.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":330869,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/09\/16\/allahabad-high-court-reiterates-scope-of-judicial-review-of-tender-process\/","url_meta":{"origin":261490,"position":1},"title":"Allahabad High Court reiterates scope of judicial review in terms of tender prescribing eligibility criteria","author":"Apoorva","date":"September 16, 2024","format":false,"excerpt":"\u201cThe writ Court is not required to find fault of the authorities with a magnifying glass rather the Court should examine the decision-making process and also leave room for interpretation of the contract by the authorities.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":379902,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/01\/sc-courts-exercise-judicial-restraint-in-contractual-matters\/","url_meta":{"origin":261490,"position":2},"title":"Marginal technical score difference in tender bidding can’t justify interference with owner’s commercial decision: Supreme Court","author":"Ritu","date":"April 1, 2026","format":false,"excerpt":"The Court held that Constitutional Courts should not exercise an \u201cex-ante jurisdiction\u201d to pre-empt executive decisions in such matters, as doing so would undermine the contractual discretion vested in the authority.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"judicial restraint in contractual matters","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/judicial-restraint-in-contractual-matters.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/judicial-restraint-in-contractual-matters.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/judicial-restraint-in-contractual-matters.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/04\/judicial-restraint-in-contractual-matters.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":214502,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/05\/09\/mp-hc-courts-to-interfere-only-when-decision-taken-by-authority-state-is-irrational-or-arbitrary-in-notice-inviting-tender\/","url_meta":{"origin":261490,"position":3},"title":"MP HC | Courts to interfere only when decision taken by authority\/State is irrational or arbitrary in Notice Inviting Tender","author":"Bhumika Indulia","date":"May 9, 2019","format":false,"excerpt":"Madhya Pradesh High Court: The Bench of S.K Seth, C.J. and Vijay Kumar Shukla, J. dismissed a writ petition challenging the conditions of Notice Inviting Tender and the relevant bid document. The petitioner contended that, associated bid document imposed restriction and made bidder ineligible for submitting the impugned tender, it\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/12\/MP-HC-JABALPUR.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":325100,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/26\/delhi-hc-dismisses-petition-challenging-tender-award-passed-by-indian-oil-corporation\/","url_meta":{"origin":261490,"position":4},"title":"\u2018Barred by delay and laches\u2019; Delhi High Court dismisses petition challenging tender award passed by Indian Oil Corporation","author":"Editor","date":"June 26, 2024","format":false,"excerpt":"The Delhi High Court said that the issuance of a commitment letter does not make the issuer a \u2018bidder\u2019 in the tender process.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":71151,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/09\/17\/courts-must-be-slow-in-interfering-with-the-interpretation-given-to-the-tender-document-by-the-owneremployer-of-the-project\/","url_meta":{"origin":261490,"position":5},"title":"Courts must be slow in interfering with the interpretation given to the tender document by the owner\/employer of the project","author":"Prachi Bhardwaj","date":"September 17, 2016","format":false,"excerpt":"Supreme Court: In the controversy relating to bids invited by the Nagpur Metro Rail Corporation Limited for the design and construction of Metro Rail in the city of Nagpur, the Court held that M\/s. Guangdong Yuantian Engineering Company (GYT) of China and M\/s. TATA Projects Limited (TPL) as a Joint\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/261490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=261490"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/261490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/261504"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=261490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=261490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=261490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}