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2009 (2) TMI 784 - HC - VAT and Sales TaxInterpretation of the price bid made by the petitioner (Arraycom) - extent of judicial review in the event of a misinterpretation of its bid - Held that:- Prasar Bharati acted completely arbitrarily in loading the bid of Arraycom with an amount that was not at all justified. The result of the loading is that the bid of Arraycom got unnaturally inflated and became higher than the bid of BECIL. This was clearly wrong on the part of Prasar Bharati and we can correct that error which has a serious and material consequence. The award of the contract to BECIL, on this basis, was clearly erroneous and it deserves to be set aside. Since we have concluded that the bid of Arraycom was lower than the bid of BECIL, we set aside the award of the contract in favour of BECIL and allow the writ petition. Since there is no other bidder in the fray, we direct Prasar Bharati to award the contract to the lowest bidder, that is, Arraycom at its bid price of ₹ 51.57 crores. Arraycom will be entitled to costs of ₹ 50,000 payable by Prasar Bharati. We direct Prasar Bharati to deposit the amount by means of a cheque drawn in favour of the Registrar General of this court within four weeks from today.
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