Delhi High Court

Timelines and mandatory certification requirements in tenders are sacrosanct; failure to comply warrants disqualification without judicial interference.

Navya Industries vs Ntpc Limited

Delhi High CourtJUDGMENT: May 13, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Petitioner, a sole proprietorship, participated in a tender invited by the Respondent (NTPC) for the procurement of biomass pellets via the GeM Portal

Source reference: para 1-2

Clause 6(C) of the Invitation for Bids (IFB) required bidders to submit technical experience documents duly certified by an "Independent Statutory Auditor of their Company" or a "specified Third-Party Inspection Agency (TPIA)"

Source reference: para 3

The Petitioner initially submitted documents certified by its Chartered Accountant

Source reference: para 4

On March 20, 2026, the Respondent requested specific TPIA-verified documents by a deadline of March 24, 2026

Source reference: para 5

The Petitioner first provided certification from "Madre Certification Pvt. Ltd," which was not an empaneled/specified TPIA

Source reference: para 6

Although the Petitioner eventually obtained a certificate from an approved agency ("BSCIC Certifications") on March 24, it failed to submit or upload it within the prescribed time due to alleged portal issues, eventually submitting it physically on March 27

Source reference: para 6, 12-13

Consequently, the Respondent disqualified the Petitioner for failing to meet technical requirements within the stipulated timeframe

Source reference: para 7
02

Issues

1. Whether the disqualification of the Petitioner for failure to submit specified TPIA certification within the prescribed deadline was arbitrary or unlawful

Source reference: para 9, 19

2. Whether the court should exercise judicial review to waive a procedural technicality in a commercial tender

Source reference: para 14, 18
03

Law Applied

The court primarily applied the principles of judicial review in administrative action as established in Jagdish Mandal v. State of Orissa, which mandates that courts must exercise restraint in tender matters unless the decision is vitiated by mala fides, arbitrariness, or irrationality

Source reference: para 18

It applied the principle that a contract is a commercial function where "principles of equity and natural justice stay at a distance"

Source reference: para 18

The court further relied on the doctrine that tender timelines and cut-off dates are sacrosanct to ensure equal treatment of bidders

Source reference: para 21

Additionally, the court noted that a bidder who participates in a process without challenging the terms (Clause 6(C)) is precluded from challenging those terms after being disqualified

Source reference: para 25
04

Reasoning

The Court observed that Clause 6(C) was an essential condition of the IFB and clearly mandated certification by either a statutory auditor (for companies) or a specified TPIA

Source reference: para 20

Since the Petitioner was a sole proprietorship, the requirement for a specified TPIA was mandatory

Source reference: para 20, 24

The Court found that the Petitioner’s failure to submit the correct certification by the deadline of March 24, 2026, was a fatal lapse, as subsequent attempts to cure deficiencies cannot be entertained without compromising the integrity of the bidding process

Source reference: para 21

It rejected the Petitioner’s claim of ambiguity in the clause, noting that the IFB provided a list of specified agencies

Source reference: para 20

Furthermore, the Court held that while the Respondent had discretionary power under Clause 25.2 to waive minor irregularities, it was not legally bound to do so; refusing to relax mandatory timelines for one bidder does not constitute arbitrariness

Source reference: para 28-30
05

Holding

The Court answered that it cannot direct the Respondent to accept documents beyond a prescribed deadline, as doing so would rewrite the tender terms and create an unfair advantage

The Court dismissed the petition, holding that the Respondent’s decision to disqualify the Petitioner was lawful and strictly in accordance with the tender terms

Source reference: para 22, 33

No mala fides or irrationality was found in the decision-making process

Source reference: para 31

The challenge to the validity of the conditions was rejected as the Petitioner had already participated in the process

Source reference: para 25

All pending applications were disposed of

Source reference: para 33
Delhi High Court

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Navya IndustriesvsNtpc Limited

Delhi High Court · May 13, 2026

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