July 3, 2024
DU LLBLaw of ContractSemester 1

Kanhaiya Lal Aggarwal V. Union of India AIR 2002 SC 2766 Case Analysis

Facts

  • Kanhaiya Lal Aggarwal V. Union of India AIR 2002 SC 2766
  • The first respondent invited tenders for execution of five items of work including supply, delivery and stacking of 75,000 cubic metre machine crushed track ballast as per specifications at its depot in Naurozabad and loading it into Railway wagons.
  • The supply period was for 24 months. The conditions in the tender notice required that the rates at which supply was to be made had to be stated in words as well as in figures against each item of work as per Schedule attached thereto;
  • that the tenders submitted with any omissions or alteration of the tender document were liable to be rejected;
  • however, permissible corrections could be attached with due signature of the tenderers;
  • that the tenderer should hold the offer open till such date as may be specified in the tender which was for a minimum period of 90 days from the date of opening of the tender;
  • that contravention of the conditions would automatically result in forfeiture of security deposit; that the tender was liable to be rejected for non−compliance of any of the conditions of the tender form

Law Points

In the present case, the short question that falls for consideration is whether the tender offered by the appellant with the rebate could have been accepted and whether such acceptance would affect the interests of any other party

  • Now the appellant made his offer of concessional rates along with the tender while respondent No. 5 made such offer after opening of the tenders.
  • It is difficult to conceive that the respondent No. 5 who is a prudent businessman would not be aware of commercial practice of giving rebate or concession in the event of quick finalization of a transaction.
  • What the appellant offered was part of the tender itself while the respondent No. 5 made such offer separately and much later.

There was nothing illegal or arbitrary on the part of Railway Administration in accepting the offer of the appellant, which was made at the time of submitting the tender itself.

PRINCIPLES

Tender legal, at the proper time of filing.

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