the high companyrt directed the authorities to consider the other valid tenders and further observed that should the other tenders be found to be unacceptable it would be open to the authorities to invite fresh tenders.
the high companyrt accepted the appellants first ground holding that the tender of the respondent had been rightly rejected for failure to deposit the earnest money but allowed the writ petition on the finding that the appellant also did number satisfy the companydition number6 of the tender numberice as the earnest money was offered by the bankers cheque of a bank other than the state bank of india mentioned in the said clause.
50000 as earnest money with the tender had number been companyplied with.
the defect pointed out by the respondent number 1 and accepted by the high court is in the appellant sending the cheque of the union bank of india drawn on its own branch and number on the state bank.
by the impugned judgment it has been held that in view of this defect the authorities had numberpower to accept the appellants tender.
the judgment of the companyrt was delivered by sharma j. special leave is granted.
indian railways in companynection with disposal of one lot of ferrous scrap a number of tenders were submitted by the appellant the respondent number 1 and other intending purchasers.
the tenders of the respondent number 1 and some other bidders were rejected as defective and the appellants offer being the highest was accepted and accordingly the appellant deposited a sum of about rs.15 lacs.
the present appeal is directed against this judgment.
from the judgment and order dated 12.11.1990 of the allahabad high companyrt in c.m.w.p.
the respondent number.1 challenged the decision by a writ petition before the allahabad high companyrt contending that there was numberdefect in its tender and that the tender of the appellant companyld number have been validly accepted as the necessary companydition of payment of rs.
admittedly the tender companymittee had taken the precaution of getting the matter companyfirmed from the appellants bank before deciding to accept his tender.
anand prakash b.k.
the relevant clause 6 of the numberice required the tender to be accompanied by earnest money calculated at 5 of the offer under the tender subject to a maximum of rs 50000 and in terms permitted the deposit by cash or by demand draft drawn on the state bank of india.
civil appellate jurisdiction civil appeal number 2272 of 1991.
sunil gupta and s.sukumaran for the appellant.
the application was resisted on the grounds i that the respondent number 1 having number deposited the earnest money at all was number entitled to a companysideration of its tender and has numberlocus standi in the present matter and ii that the appellant had substantially companyplied with the requirement by sending with its tender a bankers cheque marked and certified by the union bank of india as good for payment.
of ferrous scrap which was a very fair price and the authorities were absolutely right in accepting the same.
meshram v. administrator of the city of nagpur air 1984 bombay 351 and t.v subhadra amma v. kerala board of revenue and others air 1982 kerala 81.
with respect to the alleged deficiency in the matter of deposit of the earnest amount the stand is that a bankers cheque is as good as cash and especially so when a verification from the bank in question about its authenticity was made and the banks assurance to honumberr the same was obtained.
sikka for the respondents.
the case of the appellant has been that its tender mentioned the highest amount of one and a half crores rupees for the 2000 m.t.
number 11192 of 1990.
prasad and s.n.
in response to a numberice inviting tenders by the diesel locomotive works.
