TMI Blog2012 (6) TMI 873X X X X Extracts X X X X X X X X Extracts X X X X ..... space in VPH (Parcel Van) on round trip basis for 3 years. The tender was opened on 16.8.2011 and though the writ petitioner was the highest bidder, the tender process was cancelled on the ground that necessary clauses were not incorporated in the tender notice. The respondent-writ petitioner approached this Court with the submission that cancellation of the tender process was arbitrary and there was no valid reason for rejection of the highest bid. Learned Single Judge upheld the plea of the writ petitioner with the observation that the writ petitioner having exposed their rates, it will be in disadvantageous situation in making fresh quotation. Accordingly, the decision to cancel the tender process was set aside. It was observed that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a writ petition is filed in the High Court challenging the award of a contract by a public authority or the State, the court must be satisfied that there is some element of public interest involved in entertaining such a petition. If, for example, the dispute is purely between two tenderers, the court must be very careful to see if there is any element of public interest involved in the litigation. A mere difference in the prices offered by the two tenderers may or may not be decisive in deciding whether any public interest is involved in intervening in such a commercial transaction. It is important to bear in mind that by court intervention, the proposed project may be considerably delayed thus escalating the cost far more than any savin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g interim relief. 22. In Tata Cellular v. Union of India (1994) 6 SCC 651 this Court again examined the scope of judicial review in the case of a tender awarded by a public authority for carrying out certain work. This Court acknowledged that the principles of judicial review can apply to the exercise of contractual powers by government bodies in order to prevent arbitrariness or favouritism. However, there are inherent limitations in the exercise of that power of judicial review. The Court also observed that the right to choose cannot be considered as an arbitrary power. Of course, if this power is exercised for any collateral purpose, the exercise of that power will be struck down: (SCC p. 675, para 71) 71. Judicial q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Construction Ltd. v. Trafalgar House Construction (I) Ltd (1997) 1 SCC 738 the Court observing that judicial review of contractual transactions by government bodies is permissible to prevent arbitrariness, favouritism or use of power for collateral purposes. This Court added a further dimension to the undesirability of intervention by pointing out that where the project is a high-cost project for which loans from the World Bank or other international bodies have been obtained after following the specifications and procedure of such a body, it would be detrimental to public interest to interfere. The same principles have also been reaffirmed in New Horizons Ltd. v. Union of India(1995) 1 SCC 478 with this Court again emphasising the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
