Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Technical Contract |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Issue for consideration:The issue pertains to the pre-qualification requirement for bidders,notified by the contractor; and whether the bid submitted by thesuccessful bidder was liable to be rejected on the ground that theChinese company with whom it had entered into a consortiumagreement was not registered with the competent authority interms of the Public Procurement Order.Contract – Complex technical contract – Power of judicialreview – Writ petition by the competing bidder challenging thecontract awarded to the successful bidder on the ground thatit was in breach of conditions, the tender submitted did notmeet the technical requirements – Dismissed by the SingleJudge of the High Court, however the Division Bench setaside the order.Held: In contracts involving complex technical issues, the Courtshould exercise restraint in exercising the power of judicial review– Even if a party to the contract is ‘State’ within the meaning of Art.12 of the Constitution, amenable to the writ jurisdiction of the HighCourt or the Supreme Court, the Court should not readily interferein commercial or contractual matters – Court ought to defer tothe discretion of the tender inviting authority which is best placedto interpret their terms – Courts to review the decision-makingprocess and examine arbitrariness or mala fides, if any – Neitherthe State Power Generation Company nor the contractor raised anydispute as regards the eligibility of the successful bidder to bid forthe contract – Challenge was addressed by the competing bidderwhose bid was much higher than the successful bidder – Primarydecision on whether the successful bidder meets the technicalrequirements of the tender on account of its collaborator being aChinese company that was not registered had to be determinedby the contractor – Contractor has not found that there was anybreach – Contractor and the State Power Generation Companyfound that the agreement with the Chinese company was in thenature of a service agreement and not a “consortium” under thepre-qualification requirements, thus, the registration requirementdid not apply – Division Bench ought to have proceeded withcircumspection and interfered only when the order suffered fromperversity or error – Interference of the Division Bench in thejudgement of the Single Judge not warranted – Furthermore, settingaside the award of the contract would cause insuperable difficultiesin the implementation of the contract since the work under thecontract has progressed, and both the State Power GenerationCompany and the contractor, being public entities have investedfunds for the realisation of the project – Thus, the judgement of theDivision Bench set aside and that of the Single Judge restored –Judicial restraint – Constitution of India. [Paras 33-40] |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2023 INSC 864 |
Petitioner | Btl Epc Ltd. |
Respondent | Macawber Beekay Pvt Ltd And Others |
SCR | [2023] 13 S.C.R. 152 |
Judgement Date | 2023-09-18 |
Case Number | 5968 |
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