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M/S. R. K. Sancheti, Nagpur Thr. ... vs State Of Maharashtra, Thr. Secretary ... on 22 January, 2024
cites
Afcons Infrastructure Ltd vs Nagpur Metro Rail Corporation Ltd. & Anr on 15 September, 2016
Union of India, (2020) 16 SCC 489, wherein it was held that
the courts must realise their limitations and the havoc which
needless interference in commercial matters could cause. In
contracts involving technical issues, the courts should be
even more reluctant because most of us in Judges' robes do
not have the necessary expertise to adjudicate upon
technical issues beyond our domain. As laid down in the
judgments cited above, the courts should not use a
magnifying glass while scanning the tenders and make every
small mistake appear like a big blunder. In fact, the courts
must give "fair play in the joints" to the government and
public sector undertakings in matters of contract. The courts
must also not interfere where such interference would cause
unnecessary loss to the public exchequer. -----.
The Silppi Constructions Contractors vs Union Of India on 21 June, 2019
The courts should not use a magnifying glass while
scanning the tenders and make every small mistake
appear like a big blunder. In fact, the courts must give
"fair play in the joints" to the government and public
sector undertakings in matters of contract. Courts
must also not interfere where such interference will
cause unnecessary loss to the public exchequer. (See:
Silppi Constructions Contractors v. Union of India,
(2020) 16 SCC 489).
M/S N.G. Projects Limited vs M/S Vinod Kumar Jain on 21 March, 2022
7. The legal position for interference in tender matters, is
spelt out by the hon'ble Apex Court in N.G. Projects Limited Vs. Vinod
Kumar Jain, 2022(6) SCC 127, after considering Silppi Constructions
Contractors (supra) and Afcons Infrastructure Limited (supra) as
under :
National High Speed Rail Corporation ... vs Montecarlo Limited on 31 January, 2022
In National High Speed Rail Corpn. Ltd. v. Montecarlo
Ltd., (2022) 6 SCC 401, this Court sounded a word of
caution while entertaining the writ petition and/or granting
stay which ultimately may delay the execution of the mega
projects. ---.
Uflex Ltd. vs The Government Of Tamil Nadu on 17 September, 2021
In Uflex Ltd. v. State of T.N., (2022) 1 SCC 165], this
Court stated that the enlarged role of the Government in
economic activity and its corresponding ability to give
economic "largesse" was the bedrock of creating what is
commonly called the "tender jurisdiction". The objective was
to have greater transparency and the consequent right of an
aggrieved party to invoke the jurisdiction of the High Court
under Article 226 of the Constitution of India beyond the
issue of strict enforcement of contractual rights under the
civil jurisdiction. However, the ground reality today is that
almost no tender remains unchallenged. Unsuccessful
parties or parties not even participating in the tender seek to
invoke the jurisdiction of the High Court under Article 226
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of the Constitution. ---.
M/S Galaxy Transport ... vs M/S New J.K. Roadways,Fleet Owners And ... on 18 December, 2020
In Galaxy Transport Agencies v. New J.K. Roadways,
(2021) 16 SCC 808 : 2020 SCC OnLine SC 1035, a three-
Judge Bench again reiterated that the authority that authors
the tender document is the best person to understand and
appreciate its requirements, and thus, its interpretation
should not be second-guessed by a court in judicial review
proceedings. ---.
Tata Motors Limited vs The Brihan Mumbai Electric Supply And ... on 19 May, 2023
In Tata Motors Limited Vs. The Brihan Mumbai Electric
Supply & Transport Undertaking (BEST) and others , Civil Appeal
No.3897/2023, decided on 19/05/2023, [2023 Live Law (SC) 467], it
has been held as under :
Association Of Registration Plates vs Union Of India & Ors on 30 November, 2004
52. Ordinarily, a writ court should refrain itself from
imposing its decision over the decision of the
employer as to whether or not to accept the bid of a
tenderer unless something very gross or palpable is
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pointed out. The court ordinarily should not interfere
in matters relating to tender or contract. To set at
naught the entire tender process at the stage when the
contract is well underway, would not be in public
interest. Initiating a fresh tender process at this stage
may consume lot of time and also loss to the public
exchequer to the tune of crores of rupees. The
financial burden/implications on the public exchequer
that the State may have to meet with if the Court
directs issue of a fresh tender notice, should be one of
the guiding factors that the Court should keep in
mind. This is evident from a three-Judge Bench
decision of this Court in Association of Registration
Plates v. Union of India and Others, reported in (2005)
1 SCC 679.
Air India Ltd. vs Cochin International Airport Ltd. on 31 January, 2000
53. The law relating to award of contract by the State
and public sector corporations was reviewed in Air
India Ltd. v. Cochin International Airport Ltd.,
reported in (2000) 2 SCC 617 and it was held that the
award of a contract, whether by a private party or by a
State, is essentially a commercial transaction. It can
choose its own method to arrive at a decision and it is
free to grant any relaxation for bona fide reasons, if
the tender conditions permit such a relaxation. It was
further held that the State, its corporations,
instrumentalities and agencies have the public duty to
be fair to all concerned. Even when some defect is
found in the decision-making process, the court must
exercise its discretionary powers under Article 226
with great caution and should exercise it only in
furtherance of public interest and not merely on the
making out of a legal point. The court should always
keep the larger public interest in mind in order to
decide whether its intervention is called for or not.
Only when it comes to a conclusion that
overwhelming public interest requires interference,
the court should interfere.