Prakash Asphaltings Case: Tender Bid Corrections After Opening

❓ Question:

CAN A BIDDER CORRECT A MISTAKE IN THEIR FINANCIAL BID AFTER THE BIDS HAVE BEEN OPENED AND THE HIGHEST BIDDER HAS BEEN DECLARED?

✅ Answer:

No. Once financial bids are opened and the highest bidder is declared, a bidder cannot correct their bid, even if the mistake appears genuine.

The Supreme Court has held that allowing such corrections undermines the sanctity, fairness, and finality of the public tender process.

🧩 Understanding the Legal Principles

1 Sanctity of the Tender Process is Paramount

The rules of the tender are final and binding on all bidders
The goal is to ensure a level playing field for all participants
Allowing changes after bids are opened is unfair to other bidders and makes the process opaque and arbitrary

2 No Post-Bid Corrections to Financial Offers

A bidder is expected to be vigilant and careful while submitting their bid
Mistakes in quoting prices, whether inadvertent or not, cannot be rectified after the financial bids are opened and results are declared
The court stated that a "casual approach" by a bidder cannot be used to "resurrect" their bid after losing

3 "Public Interest" is More Than Just Higher Revenue

While getting the highest revenue for the government is important, it is not the only aspect of public interest
Upholding the rules, ensuring fairness, and maintaining the integrity of the process is equally, if not more, crucial for public interest
Delaying projects through litigation to correct bids also harms public interest

4 Courts Must Show Restraint in Tender Matters

Judicial review of tender awards is very limited
Courts should not interfere unless there is clear malice, bias, or arbitrariness by the authorities
Courts should not substitute their judgment for the commercial wisdom of the tendering authority

5 All Affected Parties Must Be Heard in Court

If an unsuccessful bidder challenges the tender award in court, they must make the successful bidder a party to the case
Passing orders that affect the rights of the successful bidder without hearing them is a violation of natural justice and invalidates the court's order

🧭 Your Action Plan: Navigating Public Tenders

📝 If You Are Submitting a Bid:

✅ Pre-Submission Checklist

Read tender documents thoroughly, especially clauses on eligibility, format, and the Bill of Quantity (BOQ)
Double-check all figures in the financial bid. Ensure the amount in figures and words match and that the total is calculated correctly for the specified contract period
Do not assume past tender practices apply to the current one. Treat each tender as unique
Submit the bid well before the deadline to avoid last-minute technical errors

❌ What You CANNOT Do After Bidding

You cannot request a change in your financial bid after the submission deadline
You cannot claim a "typographical error" or "system glitch" after the bids are opened and you are not the highest bidder
You cannot argue that your corrected bid would have been higher and more beneficial to the government

⚖️ If You Are the Successful Bidder (H1) and Someone Challenges the Award:

✅ Protect Your Rights

If another bidder goes to court against the tender award, ensure you are made a party to the case
Argue that the sanctity of the tender process must be upheld and that post-bid corrections are impermissible
Highlight the public interest in finalizing contracts without delay

⚖️ Key Legal Provisions Explained

📜 Constitution of India, Article 226

The power of High Courts to issue writs
While this allows challenges to government actions, the Supreme Court has consistently held that this power should be used with great restraint in commercial/tender matters

⚖️ Established Judicial Principles

Doctrine of Sanctity of Tenders: Public tenders are the cornerstone of fair and transparent government spending. Their rules must be strictly followed
Principles of Natural Justice: In judicial proceedings, no order affecting a person's rights can be passed without giving them a chance to be heard

📘 Checklist for Bidders

                    ✅ Before Clicking "Submit"
                    I have read and understood every clause of the tender document
I have filled the BOQ template exactly as required, without any alterations
The amount in figures and words is consistent
The total bid value is correctly calculated for the entire contract period
All required documents are uploaded in a clear, readable format

                

🚩 Red Flags in Tender Processes

⚠️ Red Flags for Bidders

Assuming tender conditions based on past experience
Rushing to submit the bid at the last moment
Not verifying the final uploaded documents for errors

🛡️ Protective Measures

Meticulous preparation and internal review of the bid
Maintain a record of all clarifications sought from the tender authority
Understand that the tender conditions are binding and non-negotiable post-submission

🚨 When to Seek Professional Help

👨‍⚖️ Expert Advice Essential For:

Drafting and reviewing complex bid responses
Understanding intricate tender clauses and eligibility criteria
Filing or defending against a legal challenge to a tender award
If your bid security or bank guarantee is threatened with forfeiture due to a dispute

📝 You Can Handle With Support:

Basic document collection and organization
Initial tender analysis and bid preparation
Understanding your rights as a bidder
Monitoring tender process compliance

"A bidder's carelessness cannot become a ground to vitiate the entire tender process. Public interest is not only about maximizing revenue but also about upholding the integrity of the process. Always double-check your bid. There are no second chances. The rules of the tender are your bible. Follow them to the letter. When in doubt, seek clarification before submitting your bid, not after."

⚠️ DISCLAIMER

This content is for informational purposes only and does not constitute legal advice. Consult a qualified legal professional for specific legal guidance. The information provided is based on judicial interpretation and may be subject to changes in law.

🌿 LegalEcoSys Mission

Making Supreme Court judgments accessible and actionable for every Indian citizen navigating legal challenges.

Can a Bidder Correct a Mistake in Financial Bid After Bids Are Opened?