VILLAYATI RAM MITTAL P.LTD. vs UNION OF INDIA

The Supreme Court upheld the High Court's decision in Writ Petition (C) No.14998 of 2004, affirming that the correction made by the petitioner in its tender constituted a revocation of the original offer, thus justifying the forfeiture of the earnest money of Rs.40 lacs as per Clause 6 of the Notice. The Court noted that the earnest money was not in compliance with the stipulated requirement of being from a nationalized bank, further supporting the forfeiture. The judgment clarified that the petitioner’s claim for refund of the earnest money was not valid due to the nature of the tender correction and the subsequent cancellation of the tender process.