Case Note & Summary
Constitution of India, 1950 – Article 14–Judicial Review in Tender Matters – Constitutional Courts should interfere only if tender decisions are arbitrary, mala fide, or violate public interest – Tata Cellular v. Union of India followed – (Para 14). – Corporate Entities and Article 14 – Petitioner, being a public sector undertaking, entitled to protection under Article 14 – State Trading Corporation of India Ltd. v. Commercial Tax Officer distinguished – (Para 19). Tendering Process – Interpretation of Contractual Terms– Clause 2.2.2.1(ii) of RFP – "Present value of contract" cannot be equated with "qualifying contract" – Arbitrary interpretation by respondent rejected – (Para 16, 17). – Experience and Public Interest – Exclusion of a technically qualified public sector entity with vast experience would be against public interest – (Para 16). Judicial Precedents – Scope of Interference– Tender Issuing Authority as Best Judge – Interpretation of tender terms by the issuing authority given deference unless arbitrary or unreasonable – Afcons Infrastructure Ltd. v. Nagpur Metro Rail Corporation Ltd. relied upon – (Para 14).– Estoppel Not Applicable – Petitioner not precluded from challenging bid rejection merely because it did not challenge previous rejections – (Para 19).
Impugned order rejecting technical bid quashed – Respondent directed to evaluate financial bid – Petition allowed – (Para 20).
Issue of Consideration: Konkan Railway Corporation Ltd. Versus Union of India
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