JABALPUR, India, March 8 -- Madhya Pradesh High Court issued the following judgment/order on Feb. 5:

1. Petitioner impugns two orders, both dated 30.01.2026(Annexure P/7 & P/8), whereby the bank guarantee submitted by the petitioner towards additional performance security has been declared to be null and void and further the tender awarded to the petitioner has been cancelled and the Earnest Money Deposit (EMD) has been directed to be forfeited and proceedings sought to be initiated against the petitioner for blacklisting the petitioner.

2. Learned senior counsel appearing on behalf of petitioner submits that apart from the Earnest Money Deposit and Performance Security, petitioner was required to furnish additional performance security. He further submits that in letter of acceptance (LOA) dated 31.12.2025, it was stipulated that the additional performance guarantee could be in the shape of term deposit receipt/bank guarantee of any nationalized/scheduled commercial bank. He submits that even the notice inviting tender (NIT) stipulated such a condition that the additional performance guarantee could be in the shape of a bank guarantee. He submits that in compliance of letter of acceptance, the bank guarantee for additional performance guarantee was furnished within time. However, the respondents by the impugned communication have declined to accept the same contending that the additional performance security was to be only in the from of a fixed deposit receipt.

3. Learned senior counsel submits that even though the petitioner has complied with all the conditions of the NIT, without prejudice to their right and contention petitioner is willing to even furnish a fixed deposit receipt within a period of two weeks from today.

4. Issue notice.

5. Notice is accepted by learned Additional Advocate General appearing on behalf of respondents/State, who under instructions submits that in case, petitioner furnishes the additional performance guarantee in the form of a fixed deposit on or before 20 t h February, 2026, the contract in favour of petitioner shall be revived and the Earnest Money Deposit that has been forfeited shall be restored to the petitioner.

6. In view of the above, petition is disposed of, directing the petitioner to furnish the additional performance security in the shape of a term deposit receipt. On furnishing of the said fixed deposit, the original bank guarantee of the petitioner submitted towards the additional performance security shall be returned. The petitioner shall comply with the terms of NIT in respect of the Earnest Money Deposit also and upon furnishing the term deposit receipt, the contract shall be revived.

7. Subject to petitioner complying with the undertaking given to this Court, the Notice Inviting Tender dated 02.02.2026 shall stands set aside. However, till the time petitioner complies with the same, respondent shall defer the date of the said notice for a period of two weeks.

8. The petition is disposed of in the above terms. The question of law raised by the petitioner is left open.

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