Microscopic examination of conditions of contract by review court not permissible: HC

Excelsior Correspondent

JAMMU, Dec 29: High Court of Jammu & Kashmir and Ladakh has held that principles of judicial review are attracted to the exercise of contractual powers by Government and its instrumentalities and High Courts are vested with the “tender jurisdiction” under Article 226 of the Constitution to ensure greater accountability and transparency. However, “tender jurisdiction” is to be exercised by the High Court in rarest of rare cases on very limited grounds on the anvil of Article 14 of the Constitution.
“Microscopic examination of the terms and conditions of a contract, by the review court is not permissible. The public authority issuing a tender notice is at liberty to grant any relaxation for a bonafide reason and such relaxation is binding on the bidders. The CVC/administrative guidelines are recommendatory in nature and cannot be enforced through courts”, Justice Rajesh Sekhri said, adding “the writ court must avoid imposing its judgment on the decision of the employer regarding acceptance or rejection of a tender bid unless such decision is per se actuated with malice or arbitrariness”.
The case before the High Court was that the petitioner participated in e-NIT No. JKRTC/GML/CHT/582 dated 14.08.2023 floated by the respondents. Since the tendering process was being procrastinated, petitioner approached court by way of WP(C) No. 2442/2023 and court, as an interim measure, restrained the respondents from cancellation of the tender.
However, respondents floated e-NIT No. JKRTC/GML/ CHT/639 dated 18.09.2023 whereby earlier tender came to be cancelled, which is impugned in WP(C) No. 2528/2023. The petitioner invoked writ jurisdiction of the court under Article 226 of the Constitution of India to implore for the quashment of e-NIT dated 18.09.2023 and order dated 22.09.2023 issued by the respondents for cancellation of earlier tender.