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Mining LawSupreme Court of India

M/S Sri Venkateswara Constructions v. The State of Odisha

Civil Appeal · 2025 INSC 580Decided 25 Apr 2025
C.A. No.-005540-005540 - 2025 (@ SLP(C) No. 12174 of 2023, with connected SLP(C) No. 18198 of 2023)
Justice Bela M. Trivedi · Justice Prasanna B. Varale

Background

The Odisha Tahasildar of Banspal floated an auction for a long-term stone/sand quarry lease. The appellant company quoted the highest additional charge (Rs. 589) and was declared the successful bidder, submitting an income-tax return for an earlier assessment year (with a chartered accountant's clarification about filing due dates) and a GST no-dues confirmation. The second-highest bidder challenged the award, and the Orissa High Court set aside the selection and ordered a fresh tender, holding the appellant's tax return did not strictly match the required financial year and questioning the adequacy of its GST clearance verification.

Decision Breakdown

The Supreme Court reversed the High Court, holding that the appellant had substantially complied with the tender conditions, since its income-tax return for the current financial year was not yet due for filing (per Section 44AB of the Income Tax Act), submitting the most recent available prior-year return, backed by a chartered accountant's certificate, was reasonable and consistent with the tender's purpose of assessing financial capability. The Court also found the appellant's GST no-dues certificate valid, whereas the rival bidder had only submitted an unofficial screenshot from the GST portal, which did not meet the tender's requirement. Since the appellant's bid was also substantially higher (benefiting the public exchequer), the Tahasildar's original selection was upheld and the High Court's order for a fresh tender was quashed.

Lesson Learnt

In government tenders, courts generally defer to the tendering authority's reasonable, good-faith interpretation of technical eligibility conditions, especially where a bidder substantially complies with the underlying purpose of a requirement (like proving financial soundness), rather than mechanically disqualifying bids over rigid technicalities.

M/S Sri Venkateswara Constructions v. The State of Odisha – Legal Case Shots | LegalAware