STATE OF JHARKHAND & ORS. versus M/S CWE-SOMA CONSORTIUM
The government has the right to cancel a tender, even if only one responsive bid exists, and such decision is valid if made to foster competition and is not arbitrary or unreasonable; the High Court erred in interfering with this discretion without evidence of mala fide or arbitrariness.
- Parties
- Appellant: State of Jharkhand & Ors.; Respondent: M/s CWE-SOMA Consortium
- Jurisdiction
- India
- Judgment Date
- 12 July 2016
- Procedural Posture
- Civil Appeal / Appeal Against High Court Judgment (letter Patent Appeal No. 309 of 2014)
- Outcome
- Appeal allowed; High Court judgment set aside.
- Legal Topics
- Tender Process, Judicial Review, Government Discretion, Public Procurement
Case Brief
Summary, issues, holding and outcome
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Parties
State of Jharkhand & Ors.
Appellant
M/s CWE-SOMA Consortium
Respondent
Procedural Posture
Civil Appeal / Appeal Against High Court Judgment (letter Patent Appeal No. 309 of 2014)
Legal Issues
- 1 Whether government can cancel tender after only one responsive bidder
- 2 Extent of judicial review over government contract decisions
- 3 Applicability of Central Vigilance Commission guidelines to tender cancellation
Ratio Decidendi
The government has the right to cancel a tender, even if only one responsive bid exists, and such decision is valid if made to foster competition and is not arbitrary or unreasonable; the High Court erred in interfering with this discretion without evidence of mala fide or arbitrariness.
Court Disposition
Appeal allowed; High Court judgment set aside.
Orders
- Impugned judgment of the High Court of Jharkhand is set aside.
- No costs awarded.
Full Case Text
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