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        Case ID :

        2025 (1) TMI 716 - HC - GST

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        Tender conditions and belated objection to GST could not save a bidder from cancellation for non-payment and default. A successful bidder who accepted tender terms could not challenge cancellation of the shop allotment after failing to deposit the required 25% of the bid ...
                          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.

                              Tender conditions and belated objection to GST could not save a bidder from cancellation for non-payment and default.

                              A successful bidder who accepted tender terms could not challenge cancellation of the shop allotment after failing to deposit the required 25% of the bid amount and GST within time. The court found that the petitioner knew the conditions at bidding stage, received repeated notices, and raised the GST objection only after allotment, so no arbitrariness or illegality was shown. The parity argument also failed because other bidders had at least made partial deposits, unlike the petitioner. Writ interference was therefore unwarranted, the cancellation was upheld, and the respondents were left free to proceed in accordance with law, including recovery of damages.




                              Issues: Whether cancellation of the shop allotment and insistence on deposit of 25% of the bid amount with GST under the tender conditions warranted interference in writ jurisdiction.

                              Analysis: The allotment letter and tender conditions required the successful bidder to deposit 25% of the amount within the stipulated time and also pay GST on the sanctioned premium amount. The petitioner was aware of these conditions at the stage of bidding. Despite repeated opportunities and notices, no amount was deposited, and the objection to GST was raised only after allotment. The challenge to cancellation therefore did not disclose any arbitrariness or illegality in the respondents' action. The claim of parity with other bidders also failed because those bidders had deposited partial amounts, whereas the petitioner had not deposited anything.

                              Conclusion: The cancellation of allotment was upheld and no interference was called for in writ jurisdiction.

                              Final Conclusion: The writ petitions failed for non-compliance with the tender and allotment conditions, and the respondents were left free to proceed in accordance with law, including recovery of damages.

                              Ratio Decidendi: A successful bidder who knowingly accepts tender conditions cannot resist cancellation for non-deposit of the required amount by raising a belated objection, and writ interference is unwarranted absent demonstrated illegality or arbitrariness.


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                              ActsIncome Tax
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