Image Source: Economic Times Legal
In a significant legal victory for infrastructure firm Ceigall India Ltd, the Delhi High Court has ruled in favor of the company in a dispute involving the forfeiture of ₹5.4 million in bid security. The judgment, delivered on August 13, 2025, brings closure to a contentious matter between Ceigall and the National Highways Authority of India (NHAI), stemming from a technical error in a high-stakes bidding process.
The court’s decision not only restores Ceigall’s bid security but also reinforces the importance of procedural fairness and clarity in public procurement processes.
Background: A Bid Gone Awry
The dispute originated from Ceigall’s participation in an NHAI tender for the development of a four-lane bypass in Sambalpur, Odisha, under the Hybrid Annuity Model. The project, valued at ₹1,086.73 crore, required bidders to submit a refundable bid security of ₹10.87 crore.
Ceigall submitted its bid on March 4, 2025. However, due to a typographical error in the online bidding system, the bid amount was entered as ₹1,220 crore in figures but written as “One Thousand Two Hundred and Twenty only” in words—omitting the word “crore.” This discrepancy led NHAI to declare the bid non-responsive and initiate forfeiture of ₹5.4 million from the bid security.
Ceigall challenged the decision, arguing that the error was minor and did not affect the integrity or competitiveness of the bid.
The Court’s Verdict
The Delhi High Court, presided over by Chief Justice and Justice Tushar Rao Gedela, ruled in favor of Ceigall India Ltd. The judgment emphasized that:
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The error was typographical and did not constitute a material deviation.
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NHAI’s decision to disqualify the bid and forfeit the security was disproportionate.
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Procedural fairness must be upheld, especially when public funds and competitive bidding are involved.
The court directed NHAI and New India Insurance Company Ltd (which held the bid security) to refrain from encashing the security and to restore the amount to Ceigall.
Implications for Infrastructure Bidding
This ruling sets a precedent for how bid evaluation errors are treated in public tenders. It underscores the need for:
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Robust digital bidding platforms that minimize human error.
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Clear guidelines on how discrepancies between numerical and textual entries should be handled.
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Proportional responses from authorities in cases of minor technical lapses.
Legal experts believe the judgment will encourage more transparency and accountability in infrastructure contracting, especially in large-scale PPP projects.
Ceigall’s Response
Ceigall India Ltd welcomed the judgment, calling it a “vindication of procedural justice.” In a statement, the company said:
“We appreciate the court’s recognition of the facts and its balanced approach. This decision reinforces our faith in the legal system and our commitment to ethical business practices.”
The company also reiterated its focus on delivering high-quality infrastructure projects and maintaining compliance with all regulatory frameworks.
What’s Next for Ceigall?
With the legal hurdle cleared, Ceigall is expected to continue bidding for major infrastructure projects across India. The company has recently received a completion certificate for another highway project and is actively expanding its portfolio in road construction, bridges, and urban infrastructure.
Industry analysts believe the ruling will enhance Ceigall’s credibility and strengthen its position in future tenders.
Sources: Ceigall India Ltd vs NHAI, Economic Times, CaseMine
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