SC ORDERS JUDICIAL SCRUTINY IN ARBITRARY TENDER REJECTION CASE
Category: Legal News
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BACKGROUND
The Bharat Coking Coal Limited & Others (BCCL), which is a respondent, had issued a tender for the project for extraction of coal for 25 years. The Banshidhar Construction Pvt. Ltd. (BCPL) Company, which is appellant, gave Power of Attorney to the Director and participated in the tender bid. The technical bids opened and after the evaluation, the company was declared technically disqualified on the ground that it does not comply with the clause of providing important documents. Later other Respondent company was considered to be the successful bidder. The aggrieved Appellant had file Writ Petition before the High Court which was later dismissed via impugned order. The Appellant has challenged the judgement and order and appealed in the Supreme Court under Special Leave Petition.
KEY ASPECTS
WEDNESBURY PRINCIPLE OF REASONABLENESS
The government decisions and its instrumentalities must be free from arbitrariness. The decisions have to be taken based on the reasonableness so that it is free from bias.
PUBLIC TRUST DOCTRINE
The petitioner had made a more competitive and favourable bid but allotting tender to other Respondent company which was ineligible, commensurate loss was caused to the public through BCLL.
JUDICIAL REVIEW IN AWARD OF CONTRACTS
The Supreme Court in its judgement has set aside the impugned decision that other Respondent company is a successful bidder. Any other agreements with respect to the order are also set aside. It directed the Respondent BCCL to initiate fresh tender process for the project and to process the same in question in accordance with law.
CONCLUSION
In the public contracts, the transparent and unbiased bidding process is important. All bidders should adhere to those important/essential terms. The Government authorities should ensure equality, fairness and public interests in public contracts. The decisions passed by the executive committees must of reasonableness and not favour anyone. It is also subjected to judicial review transparency, fairness and accountability as under Article 14 of the Indian Constitution.
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WRITTEN BY: SOUJANYA V
GUIDED BY: ADVOCATE ANIK
