25 days to CNM 2026, the free National Mock (30 Nov – 3 Dec 2026).
CLATcoach · Current Affairs
Legal Updates
Judgments · Amendments · Notifications
Judgment

Gauhati HC: an engineer's certification cannot cure an admittedly wrong bid-capacity calculation in a tender

Gauhati High Court2 min readPublished
Illustration: Gauhati High Court

A contractor whose technical bid was rejected in a municipal water-supply tender challenged the qualification of two rival bidders before the Gauhati High Court, pointing out that their 'available bid capacity' — an eligibility threshold computed under the tender's Clause 4.7 formula — had been calculated using the wrong value for the number of years of work, inflating their capacity well above what the stipulated 90-day completion period actually allowed. The Municipal Board defended the qualification on the ground that the figures carried an Executive Engineer's certification, which the evaluation committee had simply relied upon without independent scrutiny.

The Court restated the limited scope of judicial review over public tenders settled in Tata Cellular v. Union of India, (1994) 6 SCC 651, and Jagdish Mandal v. State of Orissa, (2007) 14 SCC 517 — a writ court does not sit in appeal over technical evaluation and interferes only for illegality, mala fides or irrationality — but, invoking Ramana Dayaram Shetty v. International Airport Authority of India, (1979) 3 SCC 489, and the Supreme Court's 2026 ruling in M/s Mickey Traders v. M/s LRY Labor Contractor, held that an authority's interpretation of its own tender document cannot be stretched to validate a bidder who, on the correct formula, would fail the prescribed eligibility criterion; certification authenticates a figure, but cannot cure an admittedly wrong calculation. Since the error went to the root of eligibility, the Court set aside the technical evaluation and directed a fresh evaluation of all bidders strictly under the original tender conditions.

Quick check
Under the principles in Tata Cellular v. Union of India, a court reviewing a public tender's technical evaluation will ordinarily interfere only on grounds of:
  1. A lower price quoted by a losing bidder
  2. The number of years the winning bidder has operated
  3. Illegality, irrationality or procedural impropriety in the decision-making process
  4. Disagreement with the technical merits of the winning bid
Show the answer ↓

Answer: C. Tata Cellular confined judicial review of tenders to the recognised administrative-law grounds — illegality, irrationality, procedural impropriety — not a fresh appraisal of technical merits; the Gauhati High Court applied this but still intervened because the error was an admitted, eligibility-altering miscalculation.

Source document

Issued by Gauhati High Court. If this summary and the source differ, the source is right — tell us and we will correct it.

Revising the month? All 212 legal updates from October 2026 →