✦ Supreme Court of India · 23 Aug 2023

Civil Appeal No. 5375 of 2023 · Supreme Court of India

Civil Appeal No. 5375 of 2023K MAHESHWARI, K V VISWANATHAN21 min read

Case at a glance

Decided
23 Aug 2023
Bench
K MAHESHWARI, K V VISWANATHAN
Neutral citation
2023 INSC 760

Outcome

Set aside

Accordingly, the order impugned is set aside and we direct that

Provisions considered

Judgment

11 S.C.R. 379 : 2023 INSC 760 CASE DETAILS M/S OM GURUSAI CONSTRUCTION COMPANY v. M/S V.N. REDDY & ORS. (Civil Appeal No. 5375 of 2023) AUGUST 23, 2023 [J. K. MAHESHWARI AND K. V. VISWANATHAN, JJ.] HEADNOTES Issue for consideration: Under Clause 2.22.0 (ix) of tender conditions, the appellant was to furnish the additional performance security within a period of two working days and this duration of two days was not to be relaxed under any circumstances, whether to construe clause 2.22.0(ix) as rigid and unalterable, even if the justice of the cause warranted otherwise. Tender – The tendering authority had accepted the additional performance security on 17.03.2021 i.e. after a period of two working days – Propriety: Held: Under Clause 2.22.0 (ix), the appellant was to furnish the additional performance security within a period of two working days – It is not disputed that 13.03.2021 was a Saturday and 14.03.2021 was a Sunday and hence two working days would expire only on 16.03.3021 – It is also not disputed that there was a nationwide employees strike in the nationalised banks on 15.03.2021 and 16.03.2021 – Finally, additional performance security was accepted on 17.03.2021 – This is a case where the appellant has complied with the condition of furnishing the additional performance security at the earliest possible time, that it could possibly comply – That no one can be compelled to perform an impossible task - Lex non cogit ad impossibilia - is a well-accepted legal principle – Decision making authorities, like the tendering authority here, cannot be expected to turn a blind eye to undisputed – ground realities and compelling necessities, like the one that presented itself here – Thus, there is no hesitation in holding that the deposit of the additional performance security on 17.03.2021 was in due compliance of Clause 2.22.0 (ix) of the tender conditions – There was no breach of that clause. [Paras 6, 9, 23 and 24] 379 Tender – Verifi cation by tendering authority: Held: In the instant case, the tendering authority, after due verifi cation, about the non-operation of the banks on 15.03.2021 and 16.03.2021 due to the strike by the bank employees, had accepted the additional performance security on 17.03.2021 and awarded the work to the appellant – It is well settled by a long line of judgments that the owner or the employer of a project, having authored the tender documents, is the best person to understand and appreciate its requirements and interpret its documents – It has also been held that the constitutional courts must defer to this understanding and appreciation of the tender documents by the employer unless there is mala fi de or perversity in the understanding or appreciation. [Para 25] LIST OF CITATIONS AND OTHER REFERENCES

Questions this judgment answers

What did the Court decide in this case?

The Court recorded the following disposition: Accordingly, the order impugned is set aside and we direct that

Which statutory provisions did this judgment involve?

Code of Civil Procedure, 1908 — O. XXI r. 84.

Which court decided this case, and when?

Supreme Court of India, on 23 Aug 2023. The bench was K MAHESHWARI, K V VISWANATHAN.

Precedent status how later indexed judgments have treated this case

No known negative treatment found in the Courts & Cases corpus.

This is a result about the indexed corpus, not a finding that the judgment remains good law. Coverage may be incomplete.

Why is this linked?

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