Larsen And Toubro Ltd & Anr vs Union Of India & Ors

The Supreme Court upheld the Delhi High Court's dismissal of Writ Petition No.3231 of 2010, affirming that the bid submitted by M/s. Larsen and Toubro Ltd. was non-responsive under the Defence Procurement Procedure-08 due to the inclusion of a Foreign Exchange Rate Variation clause, contrary to the requirement for a firm and fixed price. The Court emphasized that the withdrawal of the condition post-bid submission did not rectify the non-responsiveness of the initial bid. Consequently, the contract was awarded to the second lowest bidder, M/s. Cochin Shipyard Ltd.