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Informist, Wednesday, Aug. 13, 2025

 

NEW DELHI – The Delhi High Court on Wednesday set aside the National Highways Authority of India's direction to disqualify Ceigall India Ltd. and forfeit its bid security for the Sambalpur Bypass project in Odisha. Ceigall India had given the bid amount as INR 12.20 billion in figures, but in words as "One Thousand Two Hundred and Twenty only" and the word "crore" was missed out due to a minor typographical mistake.

 

The National Highways Authority of India ought to have seen the inadvertence in the quoted bid and could have called Cefigall India for clarification, which it did not, said the high court. The nature and magnitude of the project itself would, perceivably, make the bid in "words" of "Rupees One Thousand Two Hundred Twenty only", seem ludicrous and unconceivable, said the court.

 

"...we are of the considered opinion that the error or mistake of the petitioner is inadvertent and bonafide, thus, the proposed action of the NHAI vide the impugned letters dated Mar. 27, 2025 and Mar. 29, 2025 is unsustainable and hence, is quashed and set aside," said the high court. As a measure of caution and to ensure that bidders take the entire process more seriously and be careful and strict in compliances, particularly, while quoting the bid prices, the high court directed Ceigall India to deposit a sum of INR 1.5 million with the highways authority within two weeks. 

 

"We further direct that on account of this bonafide mistake of the petitioner while submitting the bid qua the subject tender, no further action such as debarment etc. shall precipitate," said the court. The highways authority is at liberty to proceed with the fresh tendering process, if not already undertaken, at the earliest, said the court, adding that Ceigall India would also be at liberty to participate.

 

In September, the highways authority had floated a tender for the development, operation, maintenance and construction of a new four lane Sambalpur Bypass in Odisha with an estimated cost of INR 10.87 billion. The request for proposal required the bidder to pay INR 110,000 towards the cost of its process and to furnish a bid security of INR 108.7 million, refundable to all unsuccessful bidders.

 

The petitioner Ceigall India submitted its bid in March, however, made a typographical mistake in the same. Thereafter the petitioner immediately wrote a letter to the highways authority clarifying that the bid amount was INR 12.20 billion and not INR 1,220 and explaining that there was no provision to correct the error in the system. The petitioner requested that the bid amount be considered as INR 12.20 billion. However, the highways authority disqualified the petitioner and forfeited INR 5.44 million out of the bid security amount of INR 108.7 million.

 

At 1231 IST, the shares of Ceigall India were unchanged at INR 246 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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