Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Government contracts: Judicial review |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Government contracts: Judicial review – Scope of – On facts, appellant (CIDCO) invited tender for lease of land for the development of Hotels – Issuance of allotment letter in favour of the highest bidder – Complaints regarding irregularities in allotment of plots of land, change of user and deviation from the terms and conditions of the tender – On the basis of preliminary enquiry, issuance of notice to the highest bidder and the respondent-lessee by the newly appointed Vice Chairman – Thereafter, cancellation of lease deed, pursuant to the enquiry – Writ petitions – High Court quashed the cancellation order – On appeal, held: There is an element of abuse of bureaucratic power behind subsequent change in the tender allotment – When a contract is being evaluated, the mere possibility of more money in the public coffers, does not in itself serve public interest – Blanket claim by the State claiming loss of public money cannot be used to forgo contractual obligations – On facts, post-decisional hearing given to respondent-lessee was just to sanctify the process of cancellation – Change of usage and the subsequent division was within the statutory limitations – Thus, the earlier undertakings taken by the appellant-authorities cannot be set aside with the change of person in power, without any rhyme or reason – Phenomenon of ‘regime revenge’ is detrimental to the constitutional values and rule of law – Equity demands that when the State failed to produce an iota of evidence of either financial loss or any other public interest that has been affected, it should be compelled to fulfill its promises – Thus, the order of CIDCO, inter alia, annulling the allotment on hyper-technical grounds cannot be sustained for being contrary to the doctrine of fairness, and is set aside – Judicial restraint. Government contracts: Tender process – Judicial review of – Power of constitutional courts – Explained. Government contracts: Constitutional factors – Satisfaction of – Held: Governmental bodies being public authorities are expected to uphold fairness, equality and rule of law even while dealing with contractual matters – Right to equality u/Art. 14 abhors arbitrariness – Public authorities have to ensure that no bias, favouritism or arbitrariness are shown during the bidding process, unless public interest demands otherwise – Degree of compromise of any private legitimate interest must correspond proportionately to the public interest, so claimed – On mere grounds of public interest or loss to the treasury, the successor public authority cannot undo the work undertaken by the previous authority – In that case, businessmen would be hesitant to enter Government contract or make any investment. Administrative law: Administrative orders – Principle of natural justice – Significance of – Held: Natural justice is an important aspect while viewing the administrative orders – To maintain rule of law, effective natural justice is to be provided to affected parties, before a decision is taken – Any attempt by authority to evade the requirement of providing effective hearing before reaching a conclusion, cannot pass the muster. |
Judge | Honble Mr. Justice N.V. Ramana |
Neutral Citation | 2021 INSC 797 |
Petitioner | The Vice Chairman & Managing Director, City And Industrial Development Corporation Of Maharashtra Ltd.& Anr. |
Respondent | Shishir Realty Private Limited & Ors. Etc |
SCR | [2021] 13 S.C.R. 190 |
Judgement Date | 2021-11-29 |
Case Number | 3956 |
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