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Subodh Kumar Singh Rathour vs The Chief Executive Officer on 7 July, 2023

In Subodh Kumar (supra), the Hon'ble Apex Court has held that an action under a writ will lie even at the stage prior to the award of a contract by the State, wherever such award of contract is imbued with procedural impropriety, arbitrariness, favouritism or without any application of mind. However, it is also cautioned that Courts may set aside the decision which is found to be vitiated for the reasons stated -21- above, but Courts cannot substitute the same with its own decision. It is also held that even after the contract comes into existence, an action may lie by way of a writ to either obviate an arbitrary or unreasonable action on part of the State or to call upon it to honour its obligations unless there is a serious or genuine dispute as regards the liability of the State from honouring such obligation. When we consider the grounds raised in these writ petitions, viz., that certain conditions are arbitrary, unreasonable and impossible to comply, this Court is not impressed with such contentions, raised at the hands of the petitioners. The impugned conditions are not such that they are designed to favour a few tenderers and keep away a few. Such tender condition are uniformly made applicable in all the districts of the State. It is also not possible to hold that the conditions are impossible to comply with. If -22- COVID-19 has caused disruption in the business of the petitioners, it would be the same even in respect of other bidders also. During the course of the argument, this Court was apprised of the fact that more than 92 bids were received by the respondents and because of the interim orders of stay passed by this Court, the respondents are not able to proceed with the tender process. This Court is dealing with tenders pertaining to supply of food grains and vegetables to the children residing and studying in the Schools established by KREIS which are about 821 in number. Any further delay in the conclusion of the tender process will seriously impact the children studying in the Schools. Merely because the petitioners contend that they may have some difficulty in complying with the conditions, it will not call for interference and direct amendment to the tender conditions.
Supreme Court - Daily Orders Cites 0 - Cited by 0 - P S Narasimha - Full Document
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