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TMI Blog2016 (5) TMI 1409X X X X Extracts X X X X X X X X Extracts X X X X ..... bids from interested parties for outright purchase of sites located at three places in Himachal Pradesh including Café Aabshar in District Solan situated at 3 kilometers from town named Kandaghat. The relevant conditions mentioned in the advertisement were as under:- "A Bidder is free to bid for one or more than one cafes. However all bidders need to provide the following information for consideration of their EOI. Area of business interests (please enclose firm profile or corporate brochure) Annual turnover & Net worth in last three (3) years (please submit audited financial statements and income Tax Return of last three financial years supporting this information). Interest in particular café(s) and proposed usage. Offer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondition regarding submission of the net worth was mandatory and the Committee could not have over-looked such condition. It was further observed that the Expert Committee had fixed the reserve price in respect of the Café at Rs. 30,78,000/- while the bid submitted by the appellant at Rs. 27,15,000/- was accepted. Interestingly, respondent No.1 himself had given a bid for Rs. 17,00,000/-, far below the alleged reserve price. However, the Single Judge while accepting the submissions made on behalf of the respondent No.1 allowed the Writ Petition and quashed the Letter of Intent dated 02.03.2010 and Sale Deed dated 31.03.2010 and directed the authorities to re-do the entire process of selling said Café in accordance with law. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far below the figure of Rs. 30,78,000/-. The High Court was clearly in error in accepting this plea on behalf of respondent No.1 Now, the question that remains to be considered is whether requirement to furnish Annual Turnover and Net Worth for last three years was a mandatory condition for infraction of which the bid made by the appellant had to be rejected. In Poddar Steel Corporation v. Ganesh Engineering Works and Others[1], this Court considered conditions which are essential conditions of eligibility and those which are ancillary or subsidiary with the main object to be achieved. It was observed in para 6 of the decision as under:- ".......As a matter of general proposition it cannot be held that an authority inviting tenders is bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... condition aimed at ensuring a particular level of financial ability on part of the bidder, for example in cases where the benefit is designed to be given to a person coming from a particular financial segment, in which case the condition could well be termed essential. The idea was pure and clear sale simplicitor. As a matter of fact, the appellant did pay the entire bid amount within the prescribed period and the Sale Deed was also executed in his favor. In the circumstances the relevant condition in the advertisement would not fall in the first category of cases as dealt with by this Court in Poddar Steel Corporation (supra). The authorities could therefore validly deviate from and not insist upon strict literal compliance. The discretio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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