Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Government contracts — Notice inviting tender (NIT) for construction of dam as per Standard Bidding Documents (SBD) - Pre-bid meeting |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Government contracts — Notice inviting tender (NIT) for construction of dam as per Standard Bidding Documents (SBD) - Pre-bid meeting — Participation by ten bidders — Thereafter, only three bidders left — Respondent found responsive and other two found unresponsive — Cancellation of tender by the tender Committee as per the Central Vigilance Commission Guidelines, and decision taken for retender to make tender process more competitive — Challenge to, by the respondent — High Court allowed the writ petition holding that there existed competition as three companies participated and respondent turned out to be single bidder and re- tendering would lead to increase in value of tender, causing loss to State exchequer — On appeal, held: Right to refuse the lowest or any other tender is always available to the government — While exercising judicial review in the matter of government contracts, the primary concern of the court is to see whether there is any infirmity in the decision-making process or whether it is vitiated by mala fide, unreasonableness or arbitrariness — In terins of the clause 24 of NIT and clause 32.1 of SBD, though the Government has the right to cancel the tender without assigning any reason, the appellant-State assigned cogent and acceptable reason of lack of adequate competition to cancel the tender and invite a fresh tender — In view of lack of real competition, the State found it advisable not to proceed with the tender with only one responsive bid available before it and invited a fresh tender and the decision of the appellant did not suffer from any arbitrariness or unreasonableness — High Court did not keep in view the said clauses and right of the government to cancel the tender — High Court was not justified to sit in judgment over the decision of tender Committee and substitute its opinion — Thus, the order passed by the High Court is set aside. |
Judge | Hon'ble Ms. Justice R. Banumathi |
Neutral Citation | 2016 INSC 516 |
Petitioner | State Of Jharkhand & Ors. |
Respondent | M/s Cwe-soma Consortium |
SCR | [2016] 4 S.C.R. 157 |
Judgement Date | 2016-07-12 |
Case Number | 6125 |
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