| CITATION | AIR 1972 MP 131 |
| DATE OF JUDGMENT | 18 JANUARY, 1972. |
| COURT | MADHYA PRADESH HIGH COURT |
| APPELLANT | RAJENDRA KUMAR VERMA |
| RESPONDENT | STATE OF MADHYA PRADESH |
| BENCH | B DAYAL, A SEN |
INTRODUCTION
In the cse Rajendra Kumar Verma v. State of M.P It was determined that the individual initiating the contract has the right to retract the offer or tender prior to receiving notification of its acceptance. Furthermore, it was established that including a clause in the tender notice alone cannot negate the legal entitlement of the petitioner.
FACTS
The State of Madhya Pradesh, as the respondent, issued an advertisement inviting tenders for the sale of Tendu leaves. On 25-3-1969, the petitioner, Rajendra Kumar Verma, submitted a tender at the rate of 38.25 per standard bag and also provided a security deposit. Although the tenders were scheduled to be opened on 9th April 1969, the petitioner withdrew his tender through an application before the opening.
Upon opening the tenders, it was revealed that the petitioner’s submission was the sole tender received, and the government accepted it. However, as the petitioner failed to execute the purchaser’s agreement, proceedings were initiated to recover Rs. 24,846.12. The basis for this action was the claim that the Tendu leaves from the unit had been sold to another party, leading to the balance being recoverable from the petitioner.
ISSUE
Is it permissible to revoke or withdraw an offer or tender before receiving notification of its acceptance?
CONTENTION OF THE PARTIES
The petitioner argued that since he withdrew his offer before it was accepted, it should not be considered a valid tender on his part. The respondent countered by pointing to condition no. 10(b)(1) in the tender, which allows for the withdrawal of a tender before acceptance, provided that there is at least one valid tender available for consideration for the specific unit.
Upon opening the tenders, it was discovered that there were no tenders other than the petitioner’s, rendering his withdrawal invalid as per the condition mentioned.
JUDGMENT
It was determined that, in accordance with the stipulations outlined in condition No. 10(b)(i) of the contract, a tenderer is permitted to retract their tender before the opening, contingent upon the existence of at least one other completed and valid tender available for consideration in relation to the specific unit. In the present case, since there were no other tenders, the withdrawal of the tender by the petitioner was deemed impermissible.
The principle was emphasized that the individual initiating the offer retains the right to withdraw the tender before its acceptance. The inclusion of this clause by the government in the contract safeguards this right for the petitioner. The petitioner formally applied for the withdrawal of the tender, and since it was not denied, it is evident that no offer from the petitioner was present when the tender was opened. Consequently, it was concluded that no implicit or explicit contract had ever existed between the parties.
CONCLUSION
Individuals involved in a transaction possess the right to retract their offers prior to acceptance. In such instances, the other parties involved are not entitled to compel adherence to their respective commitments in consideration. This is because, in the absence of a valid contract, whether explicit or implicit, there exists no basis for enforcement, rendering any potential contract unenforceable.
REFERENCES
Written by MITA SARKER an intern under legal vidhiya
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