Case Note & Summary
The petitioner, a partnership firm, challenged the award of a rate contract for supply of Liquid Sodium Hypochlorite Solution 5% 5ltr (drug code 430) by NIMHANS. The tender required bidders to quote rates on a per-litre basis as per Clause 5.3.2. The petitioner quoted Rs.144 per litre plus taxes, while respondent No.5 quoted Rs.375 per litre plus taxes initially, making petitioner L1. However, respondent No.5 sent a clarification after bid opening on 27.04.2026, indicating that its rate was for a 5-litre pack, and the Tender Evaluation Committee on 07.05.2026 treated respondent No.5 as L1. The petitioner contended that post-bid clarifications or alterations to financial bids are prohibited by tender clauses 5.3.7, 5.7.1, 23.2, and relied on the Supreme Court decision in Prakash Asphaltings & Toll Highways (India) Ltd. v. Mandeepa Enterprises. The matter was pending before the High Court which reserved orders on 07.07.2026 and delivered a CAV order on 23.07.2026. The full judgment is truncated and the final decision is not available in the provided text.
Issue of Consideration
Whether the Tender Evaluation Committee could consider a clarification furnished by a bidder after opening of financial bids, contrary to the express terms of the tender, and thereby alter the L1 designation.
Case Details
2026 LawText (KAR) (07) 76
Writ Petition No. 18066 of 2026 (GM-TEN)
Bhargava D. Bhat (Petitioner), A. Madhusudhan Rao (R1, R3, R4), A. Chandra Chd. (R2), V.P. Sengottuvel and Ajit Kalyan (R5)
National Institute of Mental Health and Neuro Sciences (NIMHANS) & Ors.
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution challenging the award of a rate contract for supply of drugs to a government hospital.
Remedy Sought
Quashing of the award letter dated 04.06.2026 in respect of drug code 430, and a direction to re-evaluate bids on a per-litre basis and declare the petitioner as L1 and award the contract.
Filing Reason
The petitioner was declared L2 after the Tender Evaluation Committee considered a post-bid clarification from respondent No.5, thereby altering the L1 status originally held by the petitioner.
Issues
Whether a bidder can be permitted to clarify or modify its financial bid after opening of bids, in violation of tender conditions prohibiting such modifications.
Whether the Tender Evaluation Committee's action of treating respondent No.5 as L1 based on a post-bid clarification is arbitrary and violative of the petitioner's rights.
Submissions/Arguments
Petitioner relied on Clause 5.3.2 requiring quotations per litre, not per pack size.
Petitioner argued that Clauses 5.3.7, 5.7.1, 23.2 prohibit any revision or modification of bids after submission.
Petitioner contended that it was originally L1 and the post-bid clarification from respondent No.5 wrongly altered the ranking.
Petitioner cited Prakash Asphaltings & Toll Highways (India) Ltd. v. Mandeepa Enterprises to support that post-bid changes are impermissible.
Judgment Excerpts
5.3.2 Tenders must submit their quotations item wise i.e., per tablet, litre, capsule, etc. not as per packing size as has been asked appropriately in the tender.
5.3.7 No bidder shall be allowed at any time on any ground whatsoever to claim revision of or modification in the rates quoted by him. Clerical error, typographical error etc. committed by the bidders in the tender forms shall not be considered after opening di the tenders.
23.2 No change/ alteration on plea of clerical or typographical error in rates or other terms in the tender will be permitted under any circumstances.
Any change in template of BOQ will not be accepted under any circumstances.
Procedural History
The writ petition was filed and heard; the court reserved orders on 07.07.2026 and pronounced a CAV order on 23.07.2026.
Acts & Sections
- Constitution of India: Articles 226, 227
