On October 4, 2024, the Supreme Court of India quashed a tender decision by Bharat Coking Coal Limited (BCCL), criticizing its arbitrary and discriminatory rejection of the technical bid submitted by Banshidhar Construction Pvt. Ltd. for a coal mine project. The case centered on the rejection of Banshidhar's bid due to an alleged technicality, while the bid of Respondent No. 8, despite not meeting mandatory requirements, was accepted.
The project involved reopening and operating the Amalgamated East Bhuggatdih Simlabahal Coal Mine in BCCL’s Bastacolla area. Banshidhar Construction's bid was rejected for a minor procedural issue—submitting a Power of Attorney (POA) that was notarized after the bid was signed, even though the bid was filed well within the deadline.
On the other hand, the successful bidder, Respondent No. 8, failed to submit critical financial documents by the deadline, but was later allowed to make up the shortfall after bids were opened, violating the tender’s strict guidelines. The Court deemed this acceptance discriminatory and unfair.
Justice Bela M. Trivedi, delivering the judgment, ruled that the rejection of Banshidhar's bid was unjustified and held that the tender process must be transparent, equitable, and free of bias. The Court ordered BCCL to set aside the current tender and initiate a new process, ensuring compliance with legal standards.
This ruling emphasizes the Supreme Court’s stance against arbitrary government decision-making in tender processes, reaffirming that all bidders must be treated equally to protect the integrity of public contracts.
Click Here to: Download/View Related File
TAGS: Supreme Court BCCL tender arbitrariness public contracts equality coal mining.
