Lawstreet Journal

If There Is Total Arbitrariness Or Tender Has Been Granted In A Malafide Manner, The Court Should Refrain From Interfering In The Grant Of Tender: Supreme Court

Lawstreet Journal 23 Mar 2022 8:08pm

Image courtesy: Lawstreet Journal Judiciary If There Is Total Arbitrariness Or Tender Has Been Granted In A Malafide Manner,  The Court Should Refrain From Interfering In The Grant Of Tender: Supreme Court

The Supreme Court observed that a Court should refrain from interfering in the grant of tender even if it suffers from total arbitrariness . 

The bench, which included Justices Hemant Gupta and V. Ramasubramanian, ordered that instead of injuncting the contract's execution, the parties should seek damages for the unlawful exclusion. The court went on to say that the injunction or interference in the tender adds to the State's costs and is also against the public interest.

The Hon’ble Court observed that 

A word of caution ought to be mentioned herein that any contract of public service should not be interfered with lightly and in any case, there should not be any interim order derailing the entire process of the services meant for larger public good. The grant of interim injunction by the learned Single Bench of the High Court has helped no-one except a contractor who lost a contract bid and has only caused loss to the State with no corresponding gain to anyone”.

While deciding an appeal against a High Court decision that had authorised a writ petition challenging the grant of  tender, the Apex Court bench made this observation. Disagreeing with the High Court's approach, the bench stated that the question of whether a contract term is important or not must be considered from both the employer's and the employee's perspectives.

“Since the construction of road is an infrastructure project and keeping in view the intent of the legislature that infrastructure projects should not be stayed,… Continue Reading...


Tagged: Supreme Court of India  
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