The Bank Guarantee Was Called Non-Conforming, And The Bid Never Got Opened
A bidder was shut out at the threshold over the form of its bank guarantee. The Delhi High Court has ordered the bid admitted and technically evaluated.
The Court held the decision not to admit the bid on the ground that the Bank Guarantee was not in conformity with the RFP is not sustainable, and directed the respondents to admit the bid, technically evaluate it and proceed accordingly. Whether a bid fulfils the requirements can only be known during technical evaluation — which never happened because the bid was treated as not admitted.
- Admission and evaluation are different stages, and conflating them decided this case.
- The Court kept its own ruling narrow — only the impugned ground was examined.
- Everything else stays with the authority, including whether the bid meets the RFP on other aspects.
- Authority cited but not applied. The propositions were not disputed; they simply did not fit these facts.
- Court
- High Court of Delhi at New Delhi
- Bench
- Justice HON'BLE MR. JUSTICE V. KAMESWAR RAO, Justice HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA
- Citation
- W.P.(C) No. 12267 of 2026
- Case
- W.P.(C) No. 12267 of 2026
- Decided
- 1 September 2026
- Outcome
- Petition disposed of; bid to be admitted and technically evaluated
Why the rejection did not hold
The respondents treated the bid as not admitted because the Bank Guarantee furnished was, in their view, not in conformity with the Request for Proposal.
Whether a bid fulfils the requirements can only be known during its technical evaluation — and that could not happen, precisely because of the impugned action of treating the bid as not admitted.
The decision was therefore not sustainable. The respondents were directed to admit the bid, technically evaluate it, and proceed accordingly.
What the Court did not decide
The authorities relied on by the respondents were not doubted; the propositions of law in them simply could not assist on these facts.
The Court clarified that it had examined only the limited issue raised in the petition on the impugned report. It did not venture into whether the consortium's bid meets the conditions of the RFP on other aspects — which the respondents must consider on the bid and the documents attached to it.
Who argued it
Appearances as recorded in the judgment of the Court.
Frequently asked
Can a bid be rejected because the bank guarantee's format differs?
Not at the admission stage on these facts. The Court held whether the bid conforms can only be known on technical evaluation.
Does this mean the bidder wins the contract?
No. The bid must be admitted and evaluated; everything else remains with the authority.
Challenging a bid rejected at the admission stage
- Distinguish admission from evaluation in the first paragraph; that distinction is the case.
- Show that the alleged defect could only have been assessed on evaluation, which never took place.
- Ask for admission and evaluation, not for award — courts will give the first and not the second.
- Accept a narrow order; the authority retains everything else on the merits of the bid.
Source. High Court of Delhi at New Delhi, W.P.(C) No. 12267 of 2026, decided 1 September 2026 by Justice HON'BLE MR. JUSTICE V. KAMESWAR RAO, Justice HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA. This explainer is written from the judgment text as reported.
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