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Deviation from tender conditions allowed

The authorities can deviate from the conditions for sale by tender if the terms are not essential parts of the offer. In such cases, strict literal compliance is not required, the Supreme Court has stated in its judgment in Om Prakash vs Ramesh Chand. Setting aside the judgment of the Himachal Pradesh High Court, the apex court stated that conditions in advertisement inviting bids could be classified into two categories - those which lay down the essential conditions of eligibility and the others which are merely ancillary or subsidiary to the main object to be achieved.

Note: Unfortunately this judgment leaves it open to speculation as to which part of the condition is essential and which is not. The judgment relied upon by the Hon'ble court in this matter wasPoddar Steel Corporation vs Ganesh Engineering Works where the court opined that minor technicalities can be ignore. In that matter a cheque for earnest money was paid through Union Bank while the tender stipulated State Bank. In my opinion this difference is genuinely minor technicality while it is not so in the instant matter.

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