Supreme Court Allows Appeal in Tender Dispute Case — Upholds Single Judge's Decision. The Chief Engineer's re-verification process was deemed fair and justified under the tender conditions.

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Case Note & Summary

The case involved a civil appeal filed by the appellant against the order of the Division Bench of the High Court of Telangana, which had allowed an intra court appeal challenging the decision of the learned Single Judge. The dispute arose from a tender process for the construction of a road in Mahabubabad District, where the appellant and the fourth respondent both submitted bids. The appellant's bid was accepted based on the distance of their Hot Mix Plant from the work site, which was contested by the fourth respondent. The learned Single Judge dismissed the writ petition, finding no illegality in the Chief Engineer's decision to re-verify the distance after a complaint was raised. However, the Division Bench found fault with the second verification report, leading to the appeal. The Supreme Court analyzed the tender conditions and the reports submitted by the Superintending Engineers, ultimately concluding that the Chief Engineer acted within his authority and that the process was fair. The court emphasized that judicial review in tender matters is limited to the decision-making process and not the merits of the decision itself. The appeal was allowed, and the order of the Division Bench was set aside, reinstating the Single Judge's decision.

Headnote

A) Tender Law - Compliance with Tender Conditions - Requirement of Ownership of Equipment - Constitution of India, Article 226 - The court held that the appellant's ownership of the required Hot Mix Plant within the specified distance was established, and the Chief Engineer's re-verification process was fair and justified. The Division Bench's reversal of the Single Judge's order was found to be erroneous as it disregarded the established procedure for handling complaints (Paras 30-34).

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Issue of Consideration

Whether the Chief Engineer's decision to seek a second verification report from an independent authority was justified under the tender conditions.

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Final Decision

The Supreme Court allowed the appeal, set aside the Division Bench's order, and confirmed the Single Judge's decision, stating that the Chief Engineer's actions were fair and within the tender conditions.

Law Points

  • Tender conditions
  • Judicial review
  • Decision-making process
  • Article 14 of the Constitution
  • Independent verification
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Case Details

2019 LawText (SC) (08) 179

C.A.@S.L.P.(c) No.8185 of 2019

2019-08-28

R. Subhash Reddy, S. Abdul Nazeer

Sri B.Adinarayana Rao, Sri R. Basant, Sri S.Udaya Kumar Sagar

M/S N Ramachandra Reddy

The State of Telangana & Ors

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Nature of Litigation

Civil appeal regarding a tender dispute for road construction.

Remedy Sought

The appellant sought to overturn the Division Bench's order and reinstate the Single Judge's decision.

Filing Reason

The appellant contested the Division Bench's finding regarding the second verification report.

Previous Decisions

The Single Judge dismissed the writ petition, finding no illegality in the Chief Engineer's actions.

Issues

Validity of the Chief Engineer's second verification report Scope of judicial review in tender matters

Submissions/Arguments

The appellant argued that the Chief Engineer acted within his authority and followed fair procedures. The fourth respondent contended that the second report was not justified and violated tender conditions.

Ratio Decidendi

The court emphasized that judicial review in tender matters is limited to the decision-making process and not the merits of the decision itself, affirming the Chief Engineer's authority to seek independent verification.

Judgment Excerpts

The learned Single Judge has held that in absence of any specific mala fides against any individual, the re-verification undertaken, about the distance, by the Chief Engineer, is not illegal. We find nothing wrong in the first report, mentioning the distance from the alternate route.

Procedural History

The appellant filed a civil appeal against the Division Bench's order allowing the intra court appeal, which reversed the Single Judge's dismissal of the writ petition.

Acts & Sections

  • Constitution of India: Article 14, Article 226
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