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Supreme Court of India· 21 September 2026

Must an essential eligibility condition in a tender notice be enforced rigidly?

MICKY TRADERS v. L.R.Y. LABOUR CONTRACTOR & ORS
2026 INSC 1025 · SLP (C) No. 22161 of 2026
Coram: Justice K.V. Viswanathan · Justice Alok Aradhe
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Answer

An essential eligibility condition in a tender notice must be enforced rigidly.

An essential eligibility condition in a tender notice must be enforced rigidly, while a merely ancillary or subsidiary condition may be departed from without vitiating the process (¶24). The requirement of an experience certificate was treated as mandatory throughout the process, since the Committee did not accept the bid of any bidder that failed to furnish one, and a condition cannot be mandatory in the abstract yet directory only in its application to a favoured bidder (¶35).

Headnote

Tender — Eligibility condition — Essential vs ancillary — Judicial review — Interpretation — Tender — Eligibility condition — Essential vs ancillary — Held: An essential eligibility condition in a tender notice must be enforced rigidly. A merely ancillary or subsidiary condition may be departed from, but a condition cannot be mandatory in the abstract and directory only in its application to a favoured bidder. (¶24, 35) Tender — Eligibility condition — Interpretation — Held further: An eligibility condition in a tender must be read against the subject-matter of the tender itself, not in the abstract. The appeals were dismissed and the High Court's order quashing the acceptance of the appellant's bid was upheld. (¶25, 36)

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In the Court's own words
Paragraph 24It is well-settled in law that requirements in a tender notice can be classified into the following two categories: (i) those which lay down the essential condition of eligibility; (ii) the other which are merely ancillary or subsidiary to the main object sought to be achieved by the condition. In the first case, the authorities issuing the tender may be required to enforce the condition rigidly whereas in other cases, it may be open to the authority to deviate from it and not to insist upon strict literal compliance of the condition[^12]. It is an equally established legal proposition that any non-conformity with or relaxation in the prescribed standard allowed in case of any tenderer, if not resulting in substantial prejudice or injustice to any of the parties or to public interest in general would not be bad[^13]. It is equally well-settled in law that where upon due consideration of the tender document submitted by all the tenderers on their own merits, if it is ultimately found that successful bidders had in fact substantially complied with the purport and object for which the essential conditions were laid down, the same may not ordinarily be interfered with[^14]. I. THE NATURE OF THE EXPERIENCE REQUIRED UNDER CLAUSE 9: A SPECIALISED ONE?
Paragraph 35We find no merit in the contention that the enlistment instructions are merely directory. The Committee itself proceeded on the footing that the experience criterion was mandatory, it did not accept the bid of any bidder that failed to furnish the certificate at all; it merely erred in its assessment of whether the particular certificate furnished by the H[^1] Bidder satisfied that mandatory requirement. A condition cannot be mandatory in the abstract and directory only in its application to a favoured bidder.

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Also decided in this judgment
Must an eligibility condition in a tender be read against the subject-matter of the tender itself, not in the abstract?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Supreme Court of India. Corrections