NATIONAL HIGHWAYS AUTHORITY OF INDIA vs M/S.GANGA ENTERPRISES

The Supreme Court held that the bid security of Rs. 50 lakhs, as stipulated in the tender document, serves as an earnest to ensure that the bidder does not withdraw his bid during the validity period and that the performance security is furnished upon acceptance. The Court clarified that the bid security is distinct from performance security and can be forfeited if the bidder withdraws or fails to fulfill the conditions post-acceptance. The appeal against the High Court's judgment was dismissed, affirming the validity of the bid security provisions.