Calcutta High Court

Tendering Authority Is Not Responsible for Technical Glitches Occurring at the Bidder's End During E-Auction Processes.

CITY MALL VIKASH PRIVATE LIMITED AND ANR vs UNION OF INDIA AND ORS.

Calcutta High CourtJUDGMENT: April 23, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner participated in a tender auction (NIT No. SMP/KDS/LND/131-2025) issued by Respondent No. 3 for a 30-year lease of land in Kolkata.

Source reference: para. 1

During the live e-auction on March 26, 2026, the Petitioner’s computer system suffered a technical glitch at approximately 10:40 PM, causing them to be logged out.

Source reference: para. 3

The Petitioner alleged that this malfunction prevented them from submitting higher bids despite having the financial capacity.

Source reference: para. 6

However, records from MSTC (Respondent No. 2) indicated that while the Petitioner stopped bidding at 10:38:15 PM, their connection was restored at 10:45 PM. The bidding window remained open for an additional four minutes until 10:49:34 PM, during which the Petitioner failed to place any further bids.

Source reference: paras. 9, 17

Respondent No. 4 emerged as the highest bidder.

Source reference: para. 8
02

Issues

1. Whether the respondent authorities are responsible for a technical glitch occurring at the bidder's end during an e-auction process.

Source reference: para. 15

2. Whether the petitioners can be permitted to re-participate in the bidding process from the stage of the glitch if the tender has not yet been finalized via an allotment letter.

Source reference: para. 15
03

Law Applied

Clause 16 of the General Information to Bidders, which stipulates that the tendering authority (SMP/MSTC) is not responsible for hardware, software, or internet connectivity failures at the bidder's end.

Source reference: para. 16

In Maharashtra Housing Development Authority v. Shapoorji Pallonji & Co. Pvt. Ltd., it was held that providing a "second opportunity" to a bidder due to their own technical failures is impermissible in the absence of a portal-side glitch.

Source reference: para. 18

A bidder’s willingness to pay more post-auction does not justify setting aside results if the e-portal functioned correctly, as established in Jindal Steel & Power Ltd. v. Union of India and Deep Blue Xpress Ltd. v. Municipal Corporation of Delhi.

Source reference: paras. 11, 19
04

Reasoning

The Court reasoned that the auction's integrity depended on the functionality of the MSTC portal, not the individual bidder’s infrastructure. Since the Petitioner admitted the glitch occurred on their own computer system and the MSTC records proved the portal was operational, the authorities could not be held liable.

Source reference: para. 8, 16

The Court noted a critical factual finding: the Petitioner's system was restored at 10:45 PM, yet they remained inactive for the final four minutes of the auction window. Consequently, the Petitioner's failure to utilize the restored window negated any claim for equitable relief.

Source reference: para. 17, 20

The Court further observed that allowing a restart would unfairly prejudice the rights of the highest bidder (Respondent No. 4) who had already complied with the tender requirements.

Source reference: para. 13, 21
05

Holding

The Court answered both issues in the negative and held that the respondents are not responsible for glitches at the bidder's end.

The mere fact that an allotment letter had not been issued did not grant the Petitioner a right to re-open a concluded bidding process. The writ petition was dismissed.

Source reference: para. 21-23
Calcutta High Court

Original Court PDF

CITY MALL VIKASH PRIVATE LIMITED AND ANRvsUNION OF INDIA AND ORS.

Calcutta High Court · April 23, 2026

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment