Case Note & Summary
The case involved appeals by B.S.N.L. Ltd. against judgments from the Himachal Pradesh and Punjab and Haryana High Courts regarding a disqualification clause in the Notice Inviting Tender (NIT). The clause prohibited tenderers from participating if a near relative was employed in BSNL. The respondents challenged this clause, arguing it was impermissible and irrelevant for lower-class employees. The High Courts ruled in favor of the respondents, citing previous judgments that struck down similar stipulations. The appellants contended that the clause was a legitimate policy decision in a contractual context. The court analyzed the scope of judicial review in contractual matters, emphasizing that the terms of tenders are generally not subject to judicial scrutiny unless they are arbitrary or discriminatory. The court noted that the ultimate goal was to prevent undue influence in the decision-making process. However, it found that the High Courts had not applied the correct principles in their judgments. Ultimately, the appeals were dismissed as infructuous due to the passage of time, with no costs awarded.
Headnote
A) Administrative Law - Judicial Review - Scope of Judicial Review in Contractual Matters - Not applicable under the principles of judicial review - The court held that the terms of the invitation to tender are not open to judicial scrutiny as they fall within the realm of contract, and interference is only warranted if the policy decision is arbitrary, discriminatory, or mala fide. (Paras 10-12).
Issue of Consideration
Whether the stipulation in the Notice Inviting Tender disqualifying tenderers with relatives in BSNL was permissible.
Final Decision
The Supreme Court dismissed the appeals as infructuous due to the passage of time, stating that the High Courts had not applied the correct principles in their judgments.
Law Points
- Judicial review
- Contractual matters
- Tender conditions
- Policy decision
- Disqualification clause
