Delhi High Court

Inadvertent typographical errors in bid documents do not constitute mala fide misrepresentation warranting disqualification if no undue advantage is gained.

World Class Services Ltd vs National Sample Survey Office & Ors.

Delhi High CourtJUDGMENT: May 14, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner challenged the award of public contracts for manpower services (Bid Nos. GEM/2025/B/7005488 and GEM/2025/B/7004775) in favor of Respondent No. 5

Source reference: p. 1

The Petitioner alleged that Respondent No. 5 submitted a Chartered Accountant (CA) Certificate with an inflated turnover of ₹10,98,54,61,729/-, while its audited balance sheet purportedly showed only ₹1,09,85,617/-

Source reference: p. 3

Respondent No. 1 (NSSO) clarified that Respondent No. 5, being a Micro and Small Enterprise (MSE), was entitled to a minimum of 9 marks regardless of turnover

Source reference: p. 3-4

It was further revealed that a typographical error in the CA certificate (adding an extra digit "4") was corrected to show the actual turnover as ₹1,09,85,61,729/-, which matched the audited statements when read as "₹ in 00" per ROC guidelines

Source reference: p. 4-5
02

Issues

1. Whether Respondent No. 5 committed a deliberate misrepresentation/fraud by submitting a CA Certificate with a typographical error in turnover figures, warranting disqualification under the RFP

Source reference: p. 3 / para. 8

2. Whether the decision-making process of Respondent No. 1 in accepting the clarification and awarding the contract was arbitrary or irrational

Source reference: p. 5 / para. 14
03

Law Applied

Article 226 of the Constitution of India regarding the scope of judicial review in contractual/tender matters

Source reference: p. 1

The principle that interference is warranted only if the decision-making process suffers from arbitrariness, irrationality, or procedural impropriety

Source reference: p. 6

Request for Proposal (RFP) Clauses 8.4.1(iv), (v) and 8.4.2(v) concerning technical evaluation scores for turnover and the consequences of submitting false information

Source reference: p. 3-4
04

Reasoning

The Court found that the discrepancy in turnover was a "clerical and typographical error" rather than a mala fide misrepresentation.

Source reference: p. 5

The corrected turnover of over ₹100 Crores entitled Respondent No. 5 to the maximum 15 marks, yet it was only awarded 9 marks as an MSE; thus, no preferential advantage was gained

Source reference: p. 5

Crucially, the Court noted the Petitioner misread the financial statements, failing to realize the figures were represented in "hundreds" (₹ in 00), which actually reconciled the figures to approximately ₹109 Crores

Source reference: p. 5

Since Respondent No. 1 sought and verified clarifications before finalization, the Court held the process was transparent and not arbitrary

Source reference: p. 5-6
05

Holding

The Court dismissed the petition, holding that there was no case for interference as the Petitioner’s claims were based on an erroneous interpretation of financial documents

The Court answered that the error was not a "deliberate misrepresentation" intended to secure undue advantage

Source reference: p. 5

The petition was dismissed with a cost of ₹20,000/- imposed on the Petitioner for lack of due diligence and filing a grievance based on a misreading of documents, payable to DHCLSC

Source reference: p. 6
Delhi High Court

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World Class Services LtdvsNational Sample Survey Office & Ors.

Delhi High Court · May 14, 2026

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