In the important case of Tata Cellular v. Union of India, (1994) 6
SCC 651, the law on this point was exhaustively reviewed and the
Supreme Court noted that in relation to public contracts and tenders, the
following principles are discernible from the previous precedents:
15. Counsel for the respondent lastly relied upon the Division Bench
ruling of this Court in Gammon India Ltd. v. Delhi Metro Rail
Corporation Ltd. (2015) 150 DRJ 183 where it was held that if a
tendering agency takes into account adverse material and rejects the bid,
the action would not amount to blacklisting. Reliance was placed on the
following observations: