Supreme Court orders railway contract award after finding perversity in bid rejection

The Supreme Court had to determine if this rejection was valid given that the money had already been transferred digitally.

Who it concerns: Appellant: Hardev Construction Private Limited; Respondents: Union of India & Ors. (including Ministry of Railways and the successful tenderer); Bench: Justice K. Vinod Chandran and Justice B. Pardiwala.

What the court decided

• Set aside the order of the Patna High Court that affirmed the rejection of the appellant's bid.
• Direct the contract to be awarded to the appellant.
• Order Respondents 1 and 2 to facilitate e-payment of the Bid Security within two weeks, or allow the appellant to submit it in another form within a further two weeks if technical difficulties arise.
• Direct that upon submission of the Bid Security, the appellant's financial bid shall be opened and considered along with other bids to finalize the tender.
• Allow the appeal and reject any pending applications.

Also in the document

• The Court found a 'clear perversity' in rejecting the bid for non-production of an original receipt for an e-payment, as the money had already been transferred to the respondent's account.
• The Court noted that the appellant's financial bid was not previously opened because the technical bid was rejected at the inception.
• The judgment is dated October 12, 2026.