M/S Patel Enginnering Ltd vs Union Of India & Anr on 11 May, 2012
56. The third case cited on behalf of UOI is the judgment of the Supreme
Court in Patel Engineering Ltd. v Union of India and Anr. (2012) 11 SCC
257.
56.1. This was a case where the bidder i.e., the petitioner was blacklisted
after it had refused to issue a confirmation letter although its bid had been
accepted. This resulted in the respondent no.2/National Highways Authority
of India [hereafter referred to as "authority"], having to award the contract to
another entity at a much lower premium, causing substantial loss to it.
Resultantly, the petitioner/bidder was debarred from participating or bidding
for future projects for one year from the date of the said order being passed.
56.2. Given these facts, the Court refused to intervene with the blacklisting
order. The Court ruled that, since respondent no.2/authority had the power to
enter into a contract by necessary implication it also had the power not to
enter into a contract.