Court can only interfere when decision of authority is arbitrary: HC

Excelsior Correspondent
Srinagar, Nov 22: High Court has refused to quash the NIT issued by J&K Project Construction Corporation (JKPCC) for construction of office complex for Excise & Taxes Department in Srinagar by recording that the court can interfere when an irrational and unjust decision is taken by the authority.
Holding the NIT issued by the Deputy General Manager of JKPCC for construction of office complex for Commercial Taxes Department at Excise and Taxation Premises Solina, Srinagar as valid, Justice Vinod Chatterji Koul dismissed the plea of MS Creations Architects, Engineers, Planners, Interior Designers seeking quashing NIT issued by Deputy General Manager – JKPCC for engagement of Architectural-cum-Structural Consultant for Construction of building in question.
The petitioner firm was also seeking that JKPCC authorities be directed to continue consultancy allotted to petitioner-firm in respect of construction tendered vide impugned NIT and to pay the amount already due towards him.
Justice Koul recorded that the courts can interfere only if the decision taken by the authority is found to be illogical, capricious or in gross abuse of power or in violation of principles of natural justice and contrary to public interest.
The concept of legitimate expectation, court said, has no role to play where the said action is a matter of public policy or in the public interest, unless, of course, the action taken amounts to an abuse of power. “In the present case petitioner, having regard to all that has been discussed and well settled legal position, has not been able to make a case to warrant interference in impugned NIT and as a result whereof, writ petition is liable to be dismissed. For the reasons writ petition is without any merit and is, accordingly, dismissed”, Court concluded.
The case set up before the court is that petitioner-firm is a renowned architectural cum structural consultancy, having expertise in the field and that petitioner has also been elected as fellow of Indian institute of Architects and the J&K Project Construction Corporation Limited is a government owned corporation registered under the Companies Act as it is entrusted with function of effecting constructions of Government buildings in Union Territory of J&K and has also power to float tenders on behalf of the Government of J&K for getting the government buildings constructed under its control and supervision.
The respondent-JKPCC court has been informed, has no right or authority to issue NIT impugned as petitioner has accomplished all the work in question and its tendering/ retendering is unjustified, making mockery of all the executions, already accomplished on the basis of consultancy provided by petitioner-firm. NIT suffers from arbitrariness and has been issued without application of mind at the huge loss of State Exchequer.
JKPCC counsel insists that public authorities must be left with same liberty as they have in framing the policies, even while entering into contracts because many contracts amount to implementation or projection of policies of the Government but it cannot be overlooked that unlike policies, contracts are legally binding commitments and that in contracts having commercial element, some more discretion has to be conceded to the authorities so that they may enter into contracts with persons keeping an eye on the augmentation of the revenue.