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2010 (9) TMI 222 - HIGH COURT OF KERALAAward of contract for supply of machinery by the Government of Kerala to third respondent which is a Central Government undertaking in preference to the appellant Held that:- Even if Government orders or tender conditions do not provide for any preference to a Government Company in the award of contract by the Government, still it is open to the Government while awarding the contract to favour such a contractor as the risk of breach of contract is less and actually there will be no financial loss to the Government, even if the contract amount is higher than the lower price quoted by a private contractor. In this case we notice that a fair procedure is adopted by second respondent by calling for revised quotations from both the parties, the appellant and third respondent, whereunder the third respondent’s tender happened to be the lower and so much so, contract is awarded to them, not merely because third respondent is a Government Company, but because its bid is the lower one. We, therefore, find no merit in the Writ Appeal and, therefore, dismiss the same.
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