Tender alterations after bid submission arbitrary and violative of Article 14: Calcutta High Court
Respondent authorities are instructed to proceed with the tender process based on the original tender document.
Respondent authorities are instructed to proceed with the tender process based on the original tender document.
Delhi High Court opined that, if the orders passed by this Court would not be implemented, it would lead to a situation where each department of the Government would be raising objections to the statement made by the other department.
Calcutta High Court observed that the Courts should refrain from interfering in the grant of contracts or licenses unless there is clear arbitrariness or malafide conduct.
Supreme Court viewed that the Division Bench of Karnataka High Court, which was considering an appeal against a judgment of a Single Judge rejecting the writ petition, ought to have proceeded with circumspection.
“The notice is required to state the grounds necessitating the action and the penalty proposed specifically and unambiguously and is also required to adhere to the principles of natural justice”
“The aim of fostering diverse supplier base can serve as counterbalance to intrinsic challenges posed by oligopsonistic market. By discouraging market domination by single entity, tender conditions are designed to mitigate the risks associated with limited buyer options, thereby creating more level playing field for all market participants.”
“Engaging in opportunistic litigation undermines the fairness and credibility of the tendering process, creating an environment of unpredictability. Such practices must be strongly discouraged to ensure the integrity of the tendering system of procurement.”
Allahabad High Court said that the proceedings against the petitioner based only on inspection report is arbitrary.
Inviting tenders from the entities mentioned in paragraph 4(vi)(b) of the National AYUSH Mission Operational Guidelines is the most transparent and non-arbitrary method of allocation that can be undertaken. Hence, the appellant must henceforth purchase Ayurvedic medicines only through a free and transparent procedure such as tenders, and deviation from this rule to procure medicines by nomination can be done, only if exceptional circumstances exist.
Allahabad High Court viewed that the tender authority, has been given a certain degree of leverage by the courts, being the best person to understand its requirements. Hence, a mere disagreement with the authority's decision-making process is not a reason for a constitutional court to interfere.
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