Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Constitution of India-Arts. 298 299 & 14 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Constitution of India-Arts. 298, 299 & 14-Malafides-Acquisition of advanced technology by Govt. Company-Held, that in the circumstances of the case not feasible to invite tenders-Consideration by Sub-Committee-Held, fair and proper consideration-No Malafides made out against MD-Administrative Law-Natural Justice Article 77-Articles of Association of HAL-Article 117-Rules of business by President-Held, directive can be issued by Govt. of India-The directive must be expressed in the name of the President and not by the President himself-Form not mandatory-Directive issued in the present case by Govt. of India proper-Held, other companies whose offers are rejected - Need not be given an opportunity of being heard.The three appellants along with Max-GB (Respondent No. 4) had E offered to collaborate with HAL, for the purpose of improving the quality and quantity of penicillin-G (Penn.G) and they had also offered to bring in foreign technology through their foreign collaborators.While there were four offers including that of the Respondent No. 5 (Max.GB) the Chairman & MD of HAL supported the offer of Max-GB. The Board of Directors considered the offers made by SPIC and PBG and rejected them, asĀ· the technology offered by them was not in any way superior to that of HAL.A sub-Committee was appointed to evaluate the other proposals in Which the offers of SPIC and PBG were considered again, and their rejection was reiterated. The Sub-committee suggested that the Max-GB was the only offer left and it can be considered, keeping in view the financial parameters suggested by them. The Board of Directors then decided that minimum lease rentals payable by Max-GB should be Rs. 31.68 Crores. The Chairman, HAL, then approached the Govt. of India after stating that the amount of Rs. 31.68 crores was not agreeable to Max-GB and that the Board resolution was not correct. The Govt. of India after obtaining the expert advice of Prof. M.M. Sharma issued a directive to HAL to enter into a MOU with Max-GB and the MOU was signed for an annual rental of Rs. 17 crores.The appellants challenged the MOU by filing three writ petitions contending that the MOU was invalid for the reason that though they had offered to provide equally superior technology on more advantageous terms, their offers were rejected due to the bias of the Managing Director of HAL. It was also contended before the High Court that because of the malafides on the part of the Managing Director, HAL had to lease out its plant for a very low amount, that the Government/HAL should have called for tenders and that no one knew the terms of the contract since it was formed in a hush hush manner and that there was no transparency in their dealings. The High Court repelled all the contentions and dismissed the writ petitions.On appeal, it was contended by the appellants that their offers were rejected due to the malafides on the part of the Managing Director of HAL; that there was no fair consideration of the offers made by the appellants; that the terms stipulated by Max-GB were not put to the appellants for ascertaining their response, that the lower rental accepted in the MOU is against the minimum amount stipulated by the Board of Directors of HAL; that the Managing Director was bound to have carried out the instructions instead he was trying to over reach them; that the power to give directives under Art. 117 of the Articles of Association of HAL is vested in the President alone and the Government of India was incompetent to issue the directive; and that the case of Torrent was not considered prior to entering into the MOU. |
Judge | Hon'ble Mr. Justice B.P. Jeevan Reddy |
Neutral Citation | 1995 INSC 92 |
Petitioner | G.d. Zalani And Anr. Etc. |
Respondent | Union Of India And Ors. |
SCR | [1995] 1 S.C.R. 794 |
Judgement Date | 1995-02-02 |
Case Number | 1251-53 |
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