The Supreme Court on Friday set aside a Calcutta High Court order that had allowed a bidder to revise its financial quote after the tender process had closed. The case revolved around a multi-crore road user fee collection contract in Hooghly district, West Bengal, where a small numerical entry spiraled into prolonged litigation.
Background
In October 2023, the state government invited bids for toll collection at the Dankuni–Chandannagar–Mogra stretch. Among the seven bidders, four were shortlisted, including Prakash Asphaltings and Toll Highways (India) Ltd. and Mandeepa Enterprises.
When the financial bids opened, Prakash Asphaltings emerged as the highest (H1) bidder at over ₹91 crore, while Mandeepa’s entry showed a surprisingly low ₹9.72 lakh for the entire 1,095-day period. Soon after, Mandeepa claimed it had mistakenly quoted a daily figure instead of the total contract amount, and argued that its corrected bid would actually exceed Prakash’s offer by nearly ₹15 crore.
Court’s Observations
The tendering authority refused the rectification, citing sanctity of process. A single-judge bench of the High Court agreed, saying the bidder “with eyes open, participated in the bid and quoted an erroneous amount.” But a Division Bench later reversed this, holding that the authority had leeway to accept clarifications, and even directed that other bidders be allowed to match the corrected figure.
The Supreme Court was not convinced. Justice Ujjal Bhuyan, writing for the bench, stressed that tender rules clearly barred any change in the Bill of Quantity (BOQ). “Allowing such rectifications after bids are opened would unsettle the entire process,” the bench observed. The Court also noted that Prakash Asphaltings, though directly affected, was never made a party in the High Court proceedings—something it termed a violation of natural justice.
Citing past precedents, the Court said that while earning higher revenue is important, public interest also demands that tender rules be followed strictly to preserve fairness and predictability.
Decision
The apex court set aside the Division Bench order of February 2024 and restored the decision of the single judge. It allowed the appeal of Prakash Asphaltings, directing that the government was free to proceed with finalising the contract as per the original bid terms.
“The sanctity of the tender process must be maintained at all cost,” the Court concluded, bringing clarity to a battle that had stalled revenue collection for months.
Case Title: Prakash Asphaltings and Toll Highways (India) Ltd. vs. Mandeepa Enterprises & Others
Appeal No.: Civil Appeal No. 11418 of 2025 (Arising out of SLP (Civil) No. 12510 of 2024)
Date of Judgment: 12 September 2025
