Govt has “right to choose” in contracts: HC

Excelsior Correspondent

Srinagar, Dec 29: Observing that ‘Right to Choose’ contracts is always available with the Government, High Court today said that in the matter of contracts, the Government must be left free and quashing such decisions may impose heavy administrative burden on the administration and lead to increased and unbudgeted expenditure.
The Division Bench of Justice Ali Mohammad Magrey and Justice V C Koul recorded this while dismissing an appeal filed a transport company M/s Iqbal Motors Transport Services against decision of Food, Civil Supplies and Consumer Affairs Department for hiring of trucks for transportation of food grains in Kashmir Valley from other transport company.
The DB while dismissing the plea of the appellant-contractor said, the Government is the guardian of the finances of the State and it is expected to protect the financial interests of the State. Court said the ‘right to choose’ in contracts is always available to the Government but principles laid down under Constitution of India have to be kept in view while taking such decision.
Court said that there can be no question of infringement of Article 14 of the Constitution, if the Government tries to get the best person or the best quotation and in such eventuality the ‘right to choose’ cannot be considered to be an arbitrary power.
If such power is exercised for any collateral purpose, court said, and then the power will be struck down. “Judicial quest in administrative matters has been to find the right balance between the administrative discretion to decide matter whether contractual or political in nature or issues of social policy as such they are not essentially justifiable and the need to remedy any unfairness”, DB said.
Court has made it clear that the judicial review is not concerned with the decision but with the decision-making process and unless that restriction on the power of the court is observed, the court will, under the guise of preventing the abuse of power be itself guilty of usurping power.
The DB said that the court does not have the expertise to correct the administrative decision and that if a review of the administrative decision is permitted, it will be substituting its own decision without the necessary expertise which itself may be fallible.
On the liberty of making decision on contracts by the Government, court said, public authorities must be left with the 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.
Court on perusal of the pleadings and record said, it is apparent that the decision taken by the FCS&CA department was certainly not irrational in any manner whatsoever or intended to favour anyone.
The department had vide communication dated 17.8.2020 had intimated the consent of a transport contractor for arrangement of 200-300 trucks need for meeting requirement of making civil supplies to various destination in Valley.
The appellant contractor aggrieved of such decision for benefit of extension of contract under clause 34 of the contract agreement as he was allotted the said transportation by the department earlier for two years which was further extended from time to time.
Court said it shall not entitle the contractor with any right to claim any further extension and merely because of performance of the appellant-contractor remained satisfactory cannot confer upon it any right to claim further extension.