M/S Michigan Rubber(I) Ltd vs State Of Karnataka & Ors on 17 August, 2012
14. To support the aforesaid, he has drawn our attention to the
decision of the Division Bench in the case of Maxima Traders Pvt.
Ltd. vs. State of MP reported in 2014 (II) MPWN 5, decision of
Apex Court in the case of Michigan Rubber (India) Ltd. vs. State of
Karnataka & others reported in 2012 (8) SCC 216 and submitted
that in matters of formulating conditions of tenders and awarding
contract, greater latitude is to be conceded to State authorities, unless
action of tendering is malafide and is a misuse of statutory powers,
interference by Court is not warranted. If the State or its
instrumentalities act reasonably, fairly and in public interest in
awarding contract, interference by Court is very restrictive since no
person can claim a fundamental right to carry on business with the
government. The government and their undertakings must have a free
hand in setting terms of the tender and only if it is arbitrary,
discriminatory, malafide or actuated by bias, the Courts would
interfere. The Courts cannot interfere with the terms of the tender
prescribed by the government because it feels that some other terms in
6
W. P. No.2230 of 2017
the tender would have been fair, wiser or logical.