West Bengal State Electricity Board vs Patel Engineering Co. Ltd. & Ors on 15 January, 2001
In W.B. SEB v. Patel Engg. Co. Ltd., (2001) 2 SCC 451, the Supreme
Court emphasised on maintaining sanctity and integrity of process of
tender/bid and also award of a contract and observed ".........adherence
to the instructions cannot be given a go-bye by branding it as a
pedantic approach otherwise it will encourage and provide scope for
discrimination, arbitrariness and favouritism which are totally opposed
to the Rule of law and our Constitutional values. The very purpose of
issuing Rules/instructions is to ensure their enforcement lest the Rule of
law should be a casualty. Relaxation or waiver of a rule or condition,
unless so provided under ITB, by the State or its agencies (the
appellant) in favour of one bidder would create justifiable doubts in the
minds of other bidders, would impair the rule of transparency and
fairness and provide room for manipulation to suit the whims of the
State agencies in picking and choosing a bidder for awarding contracts
as in the case of distributing bounty or charity. In our view such
approach should always be avoided. Where power to relax or waive a
rule or a condition exists under the Rules, it has to be done strictly in
compliance with the Rules."