A higher bid cannot cure failure to meet a tender’s experience requirement: Supreme Court upholds cancellation of Mandi user charges contract

Case Name: Micky Traders v. L.R.Y. Labour Contractor & Ors.

Date of Judgment: 21 September 2026

Citation: 2026 INSC 1025

Bench: K.V. Viswanathan and Alok Aradhe, JJ.

Held: Courts ordinarily defer to a tendering authority’s interpretation of its own conditions, but that interpretation must be one the words can reasonably bear. Experience organising cattle fairs did not satisfy the requirement of successfully collecting user charges or parking fees on behalf of a government, semi-government or PSU organisation. A higher financial bid cannot cure a bidder’s ineligibility.

Summary: The Market Committee, Ludhiana accepted Micky Traders’ bid of ₹16.51 crore for collecting Mandi user charges, despite an objection that it lacked the prescribed experience. The Supreme Court held that collecting charges incidentally while operating a cattle fair was materially different from collecting and accounting for charges on behalf of a public authority. The certificates relied upon also named other entities, with no documents establishing their claimed connection to Micky Traders. The Committee’s acceptance of the bid therefore fell outside the deference normally given to a tendering authority’s evaluation.

Decision: The Supreme Court dismissed the appeals filed by Micky Traders and the Punjab State Agricultural Marketing Board and upheld the High Court’s order quashing acceptance of Micky Traders’ bid and its Letter of Acceptance.