Case Note & Summary
The Central Board of Excise and Customs (CBEC), through the Directorate of Logistics, floated an e-tender for supply, installation, and maintenance of 74 videoscopes at various field formations. The tender was awarded to M/s. ASVA Power Systems India Pvt. Ltd. The unsuccessful bidder, M/s. Almighty Techserv, challenged the award in the High Court, which held the award illegal and directed a retender, finding that Almighty Techserv's bid should have been the lowest and that the government suffered a loss of approximately Rs.63 lakhs. The Department and ASVA appealed to the Supreme Court. At the interim stage, the Supreme Court noted that the tender was floated in 2018 and the videoscopes were urgently required for customs scanning. The Court held that public interest favored permitting the Department to procure the videoscopes from ASVA, but directed that Rs.63 lakhs be deducted from the payment pending final hearing. If ASVA insisted on full payment, the interim stay would not operate and the Department would have to float a fresh tender. The Court did not decide the merits and scheduled a detailed hearing.
Headnote
A) Tender Law - Interim Relief - Public Interest - Conditional Stay - Supreme Court permitted the Department to procure videoscopes from the successful bidder pending final hearing, subject to deduction of Rs.63 lakhs from payment, to balance public interest and the rights of the unsuccessful bidder (Paras 6-7).
Issue of Consideration
Whether interim relief should be granted to allow the Department to procure videoscopes from the successful bidder pending final hearing, despite the High Court's cancellation of the tender.
Final Decision
Supreme Court permitted Department to procure videoscopes from ASVA subject to deduction of Rs.63 lakhs from payment; if ASVA insists on full payment, no interim stay and Department to float fresh tender. Final hearing to be held later.
Law Points
- Interim relief
- Public interest
- Tender law
- Conditional stay
