STERLING COMPUTERS LIMITED ETC. versus M & N PUBLICATIONS LIMITED AND ORS.

STERLING COMPUTERS LIMITED ETC. versus M & N PUBLICATIONS LIMITED AND ORS.

The supplemental agreement amounted to a fresh contract awarded to parties in default without inviting tenders, ignoring relevant considerations and violating Article 14. Such a decision-making process is arbitrary and cannot stand, rendering the supplemental agreement void.

Parties
Appellant: Sterling Computers Limited; Respondent: M & N Publications Limited; Appellant/respondent: United India Periodicals Pvt. Ltd. (UIP); Appellant/respondent: United Database (India) Pvt. Ltd. (UDI); Respondent: Mahanagar Telephone Nigam Limited (MTNL); Intervenor: R.N. Keshwani
Jurisdiction
India
Judgment Date
12 January 1993
Procedural Posture
Civil Appeal / Appeal From Delhi High Court Judgment in W.p. No. 1872 of 1992
Outcome
Appeals dismissed; judgment of Delhi High Court affirmed
Legal Topics
Judicial Review, Public Contracts, Administrative Decision Making, Tender Process
Constitutional Law Administrative Law Government Contracts Judicial Review Public Contracts Administrative Decision Making Tender Process

Case Brief

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Parties

Sterling Computers Limited

Appellant

M & N Publications Limited

Respondent

United India Periodicals Pvt. Ltd. (UIP)

Appellant/respondent

United Database (India) Pvt. Ltd. (UDI)

Appellant/respondent

Mahanagar Telephone Nigam Limited (MTNL)

Respondent

R.N. Keshwani

Intervenor

Procedural Posture

Civil Appeal / Appeal From Delhi High Court Judgment in W.p. No. 1872 of 1992

Legal Issues

  1. 1 Whether the supplemental agreement dated 26th September, 1991 constituted a valid extension of the original contract and complied with constitutional and administrative requirements
  2. 2 Whether MTNL acted in violation of Article 14 by awarding a fresh contract without inviting tenders
  3. 3 Whether judicial review applies to government contracts involving public interest

Ratio Decidendi

The supplemental agreement amounted to a fresh contract awarded to parties in default without inviting tenders, ignoring relevant considerations and violating Article 14. Such a decision-making process is arbitrary and cannot stand, rendering the supplemental agreement void.

Court Disposition

Appeals dismissed; judgment of Delhi High Court affirmed

Orders

  • MTNL to take all necessary steps as early as possible for publishing directories for Delhi and Bombay, ensuring public interest is not further affected
  • No order as to costs