Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Contract |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Contract-Award of-For professional work-To a Company-After opening the tender-Another company-tenderer objecting to the award of contract as the Company did not hold licence for carrying out the work-Licence was in the name of Chairman of the Company who was also appointed as consultant by the Company-Contract awarded in discretion to relax the tender conditions~98% of the work did not require licence-The financial bid of the Company was 25% lower than that of the other company-Writ Petition-- Award of contract quashed by High Court-In appeal, held: High Court was not justified in quashing the contract-In the facts of the case, no such public interest was involved which may warrant interference by High Court in exercise of its extraordinary jurisdiction while undertaking judicial review of an administrative action relating to award of a contract-Constitution of India, Article 226. The second respondent floated a limited tender for hiring professional services for survey of container and cargo. The contract was to be awarded through two bid process i.e. 'Technical bid' and 'Financial bid'. After opening the Technical bid, the bid of appellant and first respondent was accepted. Before awarding the contract, the Tender Evaluating Committee had doubt with regard to surveyors licence of appellant Company under Insurance Act, 1938, as the same was not in the name of the Company. The appellant informed that the licence had been issued in the name of Chairman of the Company. After reconsidering the matter second respondent qualified both the tenderers for their technical capabilities. On opening of financial bid, the bid of appellant was accepted as his bid was 25% lower than that submitted by first respondent. Second respondent was also of the view that the major work (98%) under the contract was of such nature for which no licence was required. Hence, work was awarded to appellant. First respondent had initially filed Writ Petition challenging the eligibility of the appellant to participate in the tender process on the ground that the appellant did not have licence to act as a surveyor/loss assessor under the Insurance Act. High Court dismissed the petition. Special Leave Petition against it was also dismissed. Thereafter first respondent filed another Writ Petition seeking quashing the award of contract to the appellant High Court allowed the petition holding that the appellant did not fulfil an essential pre-qualification norm by not having a licence as surveyor/loss assessor in its name; and thus the decision of second respondent in accepting the tender of the appellant, being violative of the equity clause of the Constitution, suffers from vice of arbitrariness. In appeal to this Court, appellant contended that in view of the fact that the licence-holder was the Chairman and Managing Director of the appellant Company, holding 40.02% shares of the Company, and that the appellant company had entered into an agreement whereunder the licence - holder was employed as consultant, it could not be said that the appellant did not hold the licence; and that High Court while exercising jurisdiction under Article 226 of the Constitution, had not acted under the well defined parameters of judicial review of administrative action in setting aside the order of second respondent in awarding the contract. |
Judge | Hon'ble Mr. Justice G.P. Mathur |
Neutral Citation | 2005 INSC 214 |
Petitioner | M/s. Master Marine Services Pvt. Ltd. |
Respondent | Metcalfe And Hodgkinson Pvt. Ltd. And Anr. |
SCR | [2005] 3 S.C.R. 666 |
Judgement Date | 2005-04-19 |
Case Number | 1853 |
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