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AI Drafter

Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.

Step 1 – Issue Identification & Review

The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.

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Step 2 – Draft Generation

Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.

• Relevant statutory provisions
• Judicial precedents and Supreme Court, High Court and other citations
• Issue-wise legal analysis
• Practical arguments and supporting content
• Professionally structured draft ready for further review.

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        Case ID :

        2018 (2) TMI 2145 - SC - Indian Laws

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        Appeal allowed; impugned bid declared invalid for failed e-portal retrieval and lack of timely acknowledgement; second-chance relief rejected SC allowed the appeal and set aside the High Court's directions, holding the impugned bid invalid and not entitled to consideration. The Court accepted ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              Appeal allowed; impugned bid declared invalid for failed e-portal retrieval and lack of timely acknowledgement; second-chance relief rejected

                              SC allowed the appeal and set aside the High Court's directions, holding the impugned bid invalid and not entitled to consideration. The Court accepted NIC's affidavit that bid retrieval from the e-portal was not feasible, rejected the respondent's consultant opinion and assertions of retrieval, and found the respondent failed to obtain timely acknowledgement while other bidders did. The High Court's order effectively gave the respondent a second opportunity, which SC ruled cannot be countenanced, and therefore the HC direction was incorrect.




                              ISSUES PRESENTED AND CONSIDERED

                              1. Whether the bid documents uploaded by the bidder (first respondent) on the e-tendering portal but for which no acknowledgement was generated are retrievable or are irretrievably lost.

                              2. If the bid documents are retrievable, whether the bidder is entitled to judicial directions to have its technical and financial bids decrypted, accessed and considered on merits despite failure to obtain an acknowledgement and the lapse of the bid-opening event.

                              ISSUE-WISE DETAILED ANALYSIS - ISSUE 1: Retrievability of Uploaded Bid Documents

                              Legal framework: The e-tendering process is governed by the functional design and operational rules of the e-portal maintained by the National Informatics Centre (NIC) and prevailing Government of India guidelines applicable to the e-Tendering system; successful completion of an online bid requires completion of prescribed steps (including pressing the "freeze button") and generation of an acknowledgement.

                              Precedent treatment: No earlier authority was invoked or treated as determinative on the technical question of data retrievability from the particular e-portal; the Court relied on primary technical affidavit evidence rather than on precedent.

                              Interpretation and reasoning: The NIC, as the developer and maintainer of the portal, filed an affidavit stating that (a) the data uploaded by the bidder cannot be retrieved by NIC and/or the contracting authority under the prevailing e-tender system and Government guidelines; (b) NIC does not possess the keys or an approved process to access the invalid bid packet/envelope/cover once the bid-opening event is concluded; and (c) even with keys held by the contracting authority, retrieval is not feasible at this stage because the bid-opening event has been concluded. NIC further averred that the server did not suffer a systemic glitch in the relevant period, many other acknowledgements were generated that hour, and the bidder had adequate time (44 minutes) after the alleged upload to seek technical assistance but did not do so.

                              Ratio vs. Obiter: The Court treated the NIC's affidavit as determinative on the factual/technical question of retrievability (ratio on retrievability), rejecting contrary technical opinion proffered by the bidder's consultant as insufficient to override the NIC's clear statement of incapacity to retrieve.

                              Conclusion: The Court concluded that the bid documents uploaded by the bidder are not retrievable and are, for all practical and procedural purposes under the existing e-tender system and guidelines, irretrievably lost.

                              ISSUE-WISE DETAILED ANALYSIS - ISSUE 2: Entitlement to Judicial Decryption/Consideration of the Bid

                              Legal framework: Principles governing fair and transparent tendering, that bidders must comply with prescribed procedural requirements, and that courts ordinarily will not confer a second opportunity to cure a failure in compliance where the tendering process and technical systems (as represented by NIC) do not permit retrieval; courts must balance supervisory jurisdiction with non-interference in bona fide and time-bound procurement processes.

                              Precedent treatment: The Court did not overrule or distinguish specific precedents but applied established administrative law principles that relief which amounts to giving a bidder a second chance to meet tender formalities is generally impermissible absent clear systemic failure or retrievability of the bid.

                              Interpretation and reasoning: The Court emphasized (a) the absence of any technical glitch indicated by NIC and the presence of acknowledgements for other bidders; (b) the bidder's failure to take timely remedial steps (e.g., seeking NIC assistance within the available time); (c) the NIC's categorical statement that even joint effort with the contracting authority cannot retrieve the bid after conclusion of the bid-opening event; and (d) the consequence that permitting decryption/access would effectively confer a second opportunity on the bidder, thereby compromising the integrity and timelines of the procurement process. The Court found the High Court's direction to NIC to access, transfer and decrypt the bidder's files to be inconsistent with the technical evidence and with the principle that tenderers must conform to procedural requirements.

                              Ratio vs. Obiter: The holding that judicial direction to retrieve and consider a bid is impermissible where the e-portal operator certifies irretrievability and no systemic failure is shown constitutes the operative ratio on entitlement to such relief; observations on timeliness and bidder familiarity with the system are reasoning supporting the ratio (not mere obiter).

                              Conclusion: The Court held that, even assuming arguendo retrievability were contested, the High Court erred in directing retrieval and consideration of the bidder's technical/financial bids. The directions amounted to conferring an impermissible second opportunity; accordingly, those directions were set aside and the appeal allowed.

                              CROSS-REFERENCES AND PRACTICAL OBSERVATIONS

                              1. The decision treats the NIC's technical affidavit as decisive on technical/operational matters concerning an e-tendering portal; where the portal operator attests to the impossibility of retrieval under existing guidelines and after the bid-opening event, courts should defer to that technical assessment absent cogent contrary evidence.

                              2. The ruling reinforces that bidders bear the responsibility to complete prescribed electronic steps (such as pressing the "freeze button") and to seek immediate technical assistance upon failure of an acknowledgement; failure to do so may preclude equitable relief.

                              3. Directions by a court that would require deviation from prevailing Government e-tendering guidelines or that would effectively give a bidder a second opportunity to complete required formalities are disfavoured and liable to be set aside where doing so would disrupt the integrity and timelines of procurement.


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                              ActsIncome Tax
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