E-Payment of Bid Security Cannot Be Rejected for Non-Submission of Original Receipt: Supreme Court

The Supreme Court of India has set aside the rejection of Hardev Construction Private Limited’s bid for a railway infrastructure project, holding that the company could not be disqualified for failing to submit an original receipt when it had paid the bid security electronically.

The judgment was delivered on October 12, 2026, in Civil Appeal arising out of SLP (C) No. 25855 of 2026. The dispute concerned an Engineering, Procurement and Construction (EPC) contract for guide bunds, launching aprons and river protection works linked to the Bikramshila-Katareah New Line Rail Link Project.

Why the Bid Was Rejected

Hardev Construction’s bid was rejected for not physically submitting the original bid security document as required under Clause 2.20.6(ii) of the Request for Proposal. The company argued that it had paid the security through the authority’s e-payment gateway and uploaded the digital payment receipt along with its bid.

The Ministry of Railways defended the rejection, stating that the tender conditions specifically required the original document to be submitted. The successful tenderer also argued that courts should generally defer to the authority’s interpretation of tender conditions.

Court’s Observations

A bench of Justice J. B. Pardiwala and Justice K. Vinod Chandran held that the rejection was unjustified because the money had already been transferred to the government’s account and was under its control.

The Court distinguished the case from an earlier ruling concerning an incorrect financial bid and said that strict compliance could not be demanded where the requirement was impossible to fulfil in the case of electronic payment.

The judgment observed, “Rigid adherence to the letter of a document cannot be countenanced, especially when there is a clear impossibility in compliance of the same.”

Final Decision and Directions

The Supreme Court set aside the Patna High Court Division Bench’s order and directed that the tender process proceed with Hardev Construction’s bid.

Since the bid security had reportedly been refunded after the initial rejection, the Court directed the authorities to facilitate electronic payment again within two weeks. If technical difficulties arose, the company could submit the amount through another permitted form within a further two weeks.

After the bid security is submitted, the company’s financial bid must be opened and considered alongside the other bids, with the tender finalised in accordance with the remaining conditions. The appeal was allowed, and pending applications were rejected.

Case Details

Case Title: Hardev Construction Private Limited vs Union of India & Others

Case Number: Civil Appeal arising out of SLP (C) No. 25855 of 2026; 2026 INSC 1110

Judge or Bench: Justice J. B. Pardiwala and Justice K. Vinod Chandran

Decision Date: October 12, 2026