TMI Blog1990 (4) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... 076 TO 2078 OF 1990 - - - Dated:- 30-4-1990 - RANGANATH MISRA, KULDIP SINGH AND R.M. SAHAI, JJ. D.N. Dwivedi Sarva Mitter for the Appellant. Arun Jetley, Raian Karavjawala, H.S. Anand, Nandini Gore, Ravi Kumar, M. Karanjawala, V.N. Patil and A.S. Bhasme for the Respondent. JUDGMENT Ranganath Misra, J. Special leave granted. Three applications were filed under article 226 of the Constitution before the High Court of Bombay by the respective appellants before us challenging the rejection of their highest offers in response to invitation by public tender without assigning any reason for the same as arbitrary, unconstitutional and contrary to the rule of law. The respondent, a Government company within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its discretion as well as to reject any or all offers for allotment without assigning any reason". Obviously, it is in exercise of this power that the highest tenders have not been accepted. It is the contention of Mr. Dwivedi appearing in support of these appeals that the respondent is "State" under article 12 of the Constitution and conferment of naked and unguided power as referred to above is arbitrary and contrary to the provisions of article 14 of the Constitution ; and since there is no prescribed norm or guideline and the power is unregulated and unfettered and the highest offer, after complying with the prescribed requirements, is available to be rejected without assigning any reasons, citizens are likely to be affected by exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial review. The State is certainly entitled to look for the best deal in regard to its properties. This has been accepted by several decisions of this court with reference to State action under the Excise laws. There is no allegation of mala fides in the conduct of respondent No. 1 in refusing to accept the highest offer. We must, therefore, proceed on the footing that respondent No. 1 acted bona fide and, in refusing to accept the highest offers of the appellants in regard to specific plots, has been actuated by the consideration of looking for better offers for the specific plot in the economic interests of respondent No. 1. The question which still remains to be answered is as to whether, when the highest offer in response to an invi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve action has become expansive and is becoming wider day by day. The traditional limitations have been vanishing and the sphere of judicial scrutiny is being expanded. State activity too is becoming fast pervasive. As the State has descended into the commercial field and giant public sector undertakings have grown, the stake of the public exchequer is also large justifying larger social audit, judicial control and review by opening of the public gaze ; these necessitate recording of reasons for executive actions including cases of rejection of highest offers. That very often involves high stakes and availability of reasons for action on the record assures credibility to the action, disciplines public conduct and improves the culture of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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