Thursday 2 May 2024

Supreme Court: No one can be compelled to perform an impossible task

 This is a case where the appellant has complied with the

condition of furnishing the additional performance security at

the earliest possible time, that it could possibly comply. That

no one can be compelled to perform an impossible task - Lex

non cogit ad impossibilia - is a well-accepted legal principle.

{Para 19}

20. This Court in Raj Kumar Dey and Others vs. Tarapada

Dey and Others, (1987) 4 SCC 398, while quoting, approving

and applying the maxim to the facts of that case, had the

following to say:

“6. … The other maxim is lex non cogit ad

impossibilia (Broom’s Legal Maxims – page 162) –

The law does not compel a man to do that which he

cannot possibly perform. 

REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 5375 OF 2023

M/s Om Gurusai Construction Company Vs M/s V.N. Reddy & Ors.

Author: K.V. Viswanathan, J.

Citation:  2023INSC760.

Dated: August 23, 2023.

1. Leave granted.

2. This case brings back to memory the classic words of

Justice M. Hidayatullah (as the learned Chief Justice then was)

in Mahanth Ram Das vs. Ganga Das, [1961] 3 SCR 763.

Though it was in the context of the Code of Civil Procedure,

2

dealing with the powers of a Civil Court, the following passage

does repay study for the present facts too:

“… Such procedural orders, though peremptory

(conditional decrees apart) are, in essence, in terrorem,

so that dilatory litigants might put themselves in order

and avoid delay. They do not, however, completely estop

a Court from taking note of events and circumstances

which happen within the time fixed. For example, it

cannot be said that, if the appellant had started with the

full money ordered to be paid and came well in time but

was set upon and robbed by thieves on the day previous,

he could not ask for extension of time, or that the Court

was powerless to extend it. Such orders are not like the

law of the Medes and the Persians ….”

(emphasis supplied)

3. The question which arises for consideration in this case

is, on the facts herein, are we to construe Clause 2.22.0 (ix) of

the tender conditions as the law of the Medes and the Persians

- rigid and unalterable, even if the justice of the cause

warranted otherwise?

4. Clause 2.22.0 (ix) reads as under: -

(ix) L-I shall submit the demand draft/BG or FDR

additional performance security in the office of the

Executive Engineer, Lower Wardha Project Division,

Wardha within 2 days of opening of envelope-2. This

duration of 2 days will not be relaxed under any

circumstances. Failure to do so will result in forfeiture of

EMD and the contractor/Joint Venture (jointly or

3

individually) shall be debarred from participating in any

bid of Water Resources Department/VIDC, Nagpur for

two years from date of opening of envelope-2. If L-1 fails

to submit to additional performance security within

prescribed time period then Executive Engineer ask L-2 in

writing and if L-2 bidder agree to do work at the rate

quoted by L-1 then L-2 bidder shall be considered for

acceptance".

(emphasis supplied)

Relevant Facts

5. The facts that give rise to the question are short and

interesting. On 18.01.2021, the Executive Engineer, Lower

Wardha Project Division, Wardha issued a tender calling upon

interested bidders to submit their bid. The work, which was the

subject matter of the writ petition before the High Court, was

for "construction of land development works (Part-I) of

Gadegaon main minor offtaking @ R.D. 4995 M on Nandgaon

Dy''. Three bidders submitted their bids. The technical bid

was opened on 08.02.2021 when the appellant, and the first

respondent herein (writ petitioner before the High Court) were

found eligible. The financial bid was opened on 12.03.2021

and the appellant’s bid was found to be the lowest.

4

6. Under Clause 2.22.0 (ix), as set-out above, the appellant

was to furnish the additional performance security within a

period of two working days. It is not disputed that 13.03.2021

was a Saturday and 14.03.2021 was a Sunday and hence two

working days would expire only on 16.03.3021. It is also not

disputed that there was a nationwide employees strike in the

nationalised banks on 15.03.2021 and 16.03.2021.

7. The additional performance security was submitted on

17.03.2021. The tendering authority, after satisfying itself of

the existence of the strike, accepted the bid of the appellant

and issued work order on 07.05.2021. Thereafter, the work

commencement order was issued on 24.05.2021 to the

appellant.

Findings of the High Court on Clause 2.22.0 (ix)

8. Aggrieved, the first respondent herein filed a writ

petition on 29.04.2021 challenging the work order and the

work commencement order. That writ petition has been

allowed by the Division Bench of the High Court through the

impugned order wherein the High Court has held, with respect

to Clause 2.22.0(ix):

a) that condition prescribed in Clause 2.22.0 (ix) was

mandatory since the consequences for non-compliance

have also been prescribed;

b) that Clause 2.22.0 (ix) is an essential condition;

c) that the period for furnishing the additional performance

security was earlier eight days and was consciously

reduced to two days with a further condition that the said

period would not be relaxed/extended under any

circumstances whatsoever;

d) that the tendering authority had no power under the

tender document to relax/extend the time specified in a

clause which warrants strict compliance.

9. The High Court also referred to the facts qua another

bidder, one M/s Sai Aniruddha Construction, that had

submitted its bid for another work, and had furnished the

additional performance security with a demand draft dated

15.03.2021 from a scheduled bank. This was to demonstrate

that it was possible for a bidder under the same tender notice

to furnish the additional performance security deposit on

15.03.2021.

10. On the basis of the above findings, the High Court held

that the tender issuing authority could not have accepted the

additional performance security from the appellant herein on

17.03.2021, since 17.03.2021 was the third working day from

the opening of the financial bid.

On Additional Findings of the High Court

11. After recording the findings above, the High Court

considered the events subsequent to the issuance of the work

order in favour of the Appellant and found as follows:

a) the work order in question was issued on 24.05.2021 and

the work was to be completed within six months with a

period for rectification of deficiency within further 24

months;


b) that the appellant had on 04.02.2022 issued a

communication to the Executive Engineer stating that it

could not complete the work as allotted and had sought

time till 31.03.2023.

After noticing these facts, the High Court concluded, without

any view having been expressed by the tendering authority and

without discussing any reason given in the letters seeking

extension, that the appellant had not been able to meet the time

limit. The High Court further held that the appellant was not

justified in not adhering to the time limit. Therefore, the High

Court interfered in the matter under Article 226 on the ground

that it affects public interest.

12. The High Court should not have ventured into the

question with regard to the time limit for completion of work

and the extension sought by the appellant since that was a

matter which would depend on the facts and circumstances

that arise therein. That was for the authorities to decide

keeping in mind the myriad facts that would arise there. Even


for deciding about the need for exercise of discretionary

jurisdiction, the High Court should not have ventured into this

aspect without the full facts having been placed before it. As

to, under what circumstances the extension was sought and

what view the authority has taken over the same, even we are

completely oblivious to. The High Court should have just

confined itself to the examination of the question whether the

acceptance of the additional performance security on

17.03.2021 and the consequential issue of the work order was

justified in law or not. Having found that it was not justified,

it should have stopped there and not ventured into this issue,

since full facts were not available on the record.

On alleged breach of Clause 2.22.0 (ix)

13. In this background, the primary question that arises is,

whether the High Court was justified in setting aside the work

order on the ground that the tendering authority had breached

Clause 2.22.0 (ix) by accepting the additional performance

security on 17.03.2021?

14. We have heard Shri Amit K. Pathak, learned counsel for

the appellant, Shri Prashant Shrikant Kenjale, learned counsel

for the first respondent herein and Shri Uday B. Dube, learned

counsel for the tendering authority.

15. The admitted facts are that after the declaration of the

appellant being the L1 bidder (successful bidder) on

12.03.2021, the additional performance security was to be

submitted within two days of opening of the financial bid.

Admittedly, 12.03.2021 being a Friday, 13.03.2021 was a

Saturday and 14.03.2021 was a Sunday. Both these days were

bank holidays. Even the first respondent herein has no case

that the additional performance security could have been given

on these days.

16. The High Court, in the impugned order, noticed the

communication of the Branch Manager, Bank of Maharashtra

– the appellant’s Bank, which had not disputed the fact that on

15.03.2021 and 16.03.2021 there was a strike of bank

employees due to which there was no banking transaction on

these days. It was also not disputed at the Bar that there was

indeed a bank employees strike of the nationalised banks on

those two days. The argument was only that scheduled banks

were open and one M/s Sai Aniruddh Construction had

submitted the additional performance security for another

work, under the same tender notice through a scheduled bank.

17. The appellant countered this point in his reply filed

before the High Court as well as in the grounds before us in

the appeal, by stating that the appellant did not maintain any

account in any scheduled bank. It was averred that the

appellant was maintaining the account with the Bank of

Maharashtra. To reinforce their submission, the appellant had

also submitted that, in Form-I of the tender document which

stated about the basic information of the bidder, the appellant

had mentioned the bank name and the address along with the

details of its bank account. It was further submitted that the

Undertaking IV of the tender booklet had stated that, the

bidder had to give undertaking in respect of depositing the

earnest money deposit and performance security, through the

bank account owned by the bidder. It was averred that as such

the appellant could not use any other account to perform the

bank transaction.

18. The fact that there was a strike among the employees of

the nationalised banks is also not in dispute. It is also not

disputed that the account of the appellant was in Bank of

Maharashtra and it was that account which was disclosed as

part of the basic information, furnished with the tender

document. It is also not disputed that the bidders have given

an undertaking that earnest money deposit and performance

security would be paid through the bank account owned by the

bidder. They could not have done it through any other bank.

From the records of the Appeal, it is also clear that on a

complaint made by the first respondent herein to the

Superintending Engineer, the Superintending Engineer had

written a letter on 12.04.2021 to the Executive Engineer asking

for his comments on the complaint. The complaint was about

the appellant submitting the additional performance security

beyond the two days stipulated as per Clause 2.22.0 (ix). This

was the only grievance in the complaint of the first respondent

herein. On 19.04.2021, the Executive Engineer, in his letter to

the Superintending Engineer, mentioned that 13.03.2021 was

a Saturday and 14.03.2021 was a Sunday and also confirmed

that on 15.03.2021 since all the nationalized banks were nonoperational

due to strike, the appellant had made a request to

him to extend the time till 17.03.2021. He further stated that

since 15.03.2021 and 16.03.2021 were the days when banks

were non-operational due to strike, and since the appellant

deposited the additional performance security on 17.03.2021,

the deposit seems to be proper and a request was made to

accept the tender of the appellant. Not only this, the Branch

Manager of the Appellant’s Bank, in his letter of 11.05.2021

also does not deny that there was a strike of bank employees

on 15.03.2021 and 16.03.2021.

19. This is a case where the appellant has complied with the

condition of furnishing the additional performance security at

the earliest possible time, that it could possibly comply. That

no one can be compelled to perform an impossible task - Lex

non cogit ad impossibilia - is a well-accepted legal principle.

20. This Court in Raj Kumar Dey and Others vs. Tarapada

Dey and Others, (1987) 4 SCC 398, while quoting, approving

and applying the maxim to the facts of that case, had the

following to say:

“6. … The other maxim is lex non cogit ad

impossibilia (Broom’s Legal Maxims – page 162) –

The law does not compel a man to do that which he

cannot possibly perform. The law itself and the

administration of it, said Sir W. Scott, with reference

to an alleged infraction of the revenue laws, must

yield to that to which everything must bend, to

necessity; the law, in its most positive and peremptory

injunctions, is understood to disclaim, as it does in its

general aphorisms, all intention of compelling

impossibilities, and the administration of laws must

adopt that general exception in the consideration of

all particular cases.”

(emphasis supplied)

21. Applying the same maxim and highlighting its principle,

this Court in HUDA and Another vs. Dr. Babeswar Kanhar

and Another (2005) 1 SCC 191 stated that every consideration

of justice and expediency would require that the accepted

principle which underlies Section 10 of the General Clauses

Act should be applied in cases where it does not otherwise in

terms apply [Para 5].

22. Closer to the facts of the present case is the judgment in

Rosali V. vs. TAICO Bank and Others (2009) 17 SCC 690.

In that case, an auction was held after 4.00 p.m. when the

banks were closed. Order XXI Rule 84 of the Code of Civil

Procedure mandates that “on every sale of immovable

property the person declared to be the purchaser shall pay

immediately after such declaration a deposit of twenty-five per

cent on the amount of his purchase-money to the officer or

other person conducting the sale, and in default of such

deposit, the property shall forthwith be re-sold”. In Rosali

(supra), the 25% bid amount under Order XXI Rule 84 of the

CPC was directed to be paid the next day and it was so paid.

While accepting it as a valid deposit, this Court quoted the


following paragraph from the judgment of the Karnataka High

Court in Dakshayani vs. Branch Manager, Indian Overseas

Bank, AIR 1998 Kant 114:

“4. On that basis if we interpret the law though there is

no power in the Court to extend the time fixed by the

statute still the expression immediately is capable of

taking within its sweep a situation where an act is

impossible of performance on the day on which the

auction is held as it happened in Savithramma case [ILR

1973 Kant 1277] when the bank itself was on strike and

no deposit could have been made in the bank or in the

event the auction-sale is held after court hours, a receipt

order in that regard cannot be obtained for deposit of

such an amount. Such amount could be deposited only

after obtaining a receipt order. If next day also happens

to be a holiday, the day immediately thereafter coming

up which is a working day will be the day on which such

act will have to be performed. If any other interpretation

is given it would stultify the very object of law.”

23. In view of the above, we have no hesitation to hold that

the deposit of the additional performance security on

17.03.2021 was in due compliance of Clause 2.22.0 (ix) of the

tender conditions. There was no breach of that clause.

24. Decision making authorities, like the tendering authority

here, cannot be expected to turn a blind eye to undisputed

ground realities and compelling necessities, like the one that

presented itself here. After all, they do not live in ivory towers.

25. In this case, the tendering authority, after due

verification, about the non-operation of the banks on

15.03.2021 and 16.03.2021 due to the strike by the bank

employees, had accepted the additional performance security

on 17.03.2021 and awarded the work to the appellant. It is

well settled by a long line of judgments that the owner or the

employer of a project, having authored the tender documents,

is the best person to understand and appreciate its requirements

and interpret its documents. It has also been held that the

constitutional courts must defer to this understanding and

appreciation of the tender documents by the employer unless

there is mala fide or perversity in the understanding or

appreciation. [See Afcons Infrastructure Limited vs. Nagpur

Metro Rail Corporation Limited and Another, (2016) 16 SCC

818 and Uflex Limited Vs. Government of Tamil Nadu and

Others, (2022) 1 SCC 165)].

26. In this case, no mala fide has been alleged and the

interpretation as adopted by the tendering authority cannot be

said to be perverse. We also do not find that the decision to

accept the additional performance security on 17.03.2021 and

the issuance of the work order was arbitrary and irrational.

We also do not find it to be a decision, which no responsible

authority acting reasonably and in accordance with law could

have reached. On facts, no case of prejudice to public interest

by the award of the work has also been made out. In such

circumstances, the High Court ought not to have interfered

with the acceptance of the tender and the issuance of the work

order in the present case.

27. Learned counsel for the first respondent herein, in his

written submissions, relied upon the judgment of this Court in

Vidarbha Irrigation Development Corporation and Others

vs. Anoj Kumar Agarwala and Others, (2020) 17 SCC 577.

We have carefully considered the said judgment. In that case,

the bank guarantee which ought to have been furnished for

forty months was only furnished for six months. The facts of

the present case are completely different and, as such, the said

judgment is clearly distinguishable.

28. The other judgment relied upon is the judgment in Tata

Cellular Vs. Union of India, (1994) 6 SCC 651. On the facts

herein, it does not assist the first respondent.

29. We find nothing wrong in the authority having accepted

the tender and awarding the work to the appellant.

Other grounds raised by the first respondent

30. By way of amendments made to the writ petition before

the High Court, certain additional grievances were raised by

the first respondent herein. They were: firstly that the appellant

had filed acknowledgment of income-tax returns only for three

years and not five years and secondly the old partnership deed

and the power of attorney of Shri Devereddy Chinna Guruvi

Reddy, father of Shri D. Guru Maheshwar Reddy was filed. It

was alleged that the father had expired and the Power of

19

Attorney of a dead person had been filed. These averments

have been controverted in the reply filed by the appellant.

31. With regard to the requirement of income-tax return

acknowledgements for five years, the answer given was that

the firm itself was in existence only for three financial years

before. Even otherwise, we have not been shown the specific

clause requiring acknowledgement of the income-tax returns

for five years. In any case, the tendering authority has awarded

the work, after satisfying itself, about the necessary

compliances. The High Court has also not found it fit to

pronounce on these aspects. Hence, on this ground also, the

work order cannot be set aside.

32. With regard to the submission concerning the

reconstituted partnership deed and the Power of Attorney of

the father, the Appellant has explained it in the counter, by

stating:

20

a) that Shri D. Guru Maheshwar Reddy was always a

partner since inception; that his father had died on

05.05.2020 in the middle of the pandemic;

b) that after reaching back from the native place from

Andhra in September, 2020 the Partnership was

reconstituted and that the reconstituted Partnership Deed

was submitted to the office of the Registrar of

Partnership Firms, Aurangabad on 23.10.2020.

c) that that due to pandemic and lock down, the certified

copy of the reconstituted Partnership Deed has not been

issued till the submission of the tender form.

d) that the Partnership Deed submitted contained the name

of D. Guru Maheshwar Reddy and he was a partner right

from the registration of the firm.

Hence, it was contended that the filing of the earlier

Partnership Deed and the Power of Attorney did not vitiate the

condition of the tender process warranting disqualification. In

view of the explanation and additionally in view of the fact

21

that the tendering authority has found no illegality in the same

and further the High Court having not thought it fit to examine

this issue, we do not find merit in these additional grounds.

33. Before we part, we would do well to remind ourselves of

the words of caution administered by this Court in Jagdish

Mandal vs. State of Orissa and Others, (2007) 14 SCC 517.

Speaking for the Court, Justice R.V. Raveendran said:

“22. … Attempts by unsuccessful tenderers with

imaginary grievances, wounded pride and business

rivalry, to make mountains out of molehills of some

technical/procedural violation or some prejudice to

self, and persuade courts to interfere by exercising

power of judicial review, should be resisted. Such

interferences, either interim or final, may hold up

public works for years, or delay relief and succour to

thousands and millions and may increase the project

cost manifold. Therefore, a court before interfering

in tender or contractual matters in exercise of power

of judicial review, should pose to itself the following

questions:

(i) Whether the process adopted or decision

made by the authority is mala fide or

intended to favour someone;

OR

Whether the process adopted or decision made is

so arbitrary and irrational that the court can say: “the

decision is such that no responsible authority acting

reasonably and in accordance with relevant law could

have reached”;

22

(ii) Whether public interest is affected.

If the answers are in the negative, there should be no

interference under Article 226. ….”

34. Accordingly, the order impugned is set aside and we

direct that Writ Petition No. 1787 of 2021 on the file of the

High Court of Judicature at Bombay, Nagpur Bench, Nagpur

shall stand dismissed. The Appeal is allowed. No order as to

costs.

…....…………………J.

(J.K. Maheshwari)

..…..…………………J.

(K.V. Viswanathan)

New Delhi;

August 23, 2023.

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