CUTTACK: The Orissa High Court has ruled that evaluating tenders and awarding contracts are essentially commercial functions. Principles of equity and natural justice stay at a distance. The division bench of Chief Justice Mohammad Rafiq and Justice BR Sarangi on Thursday said, “If the decision relating to award of contract is bona fide and is in public interest, courts will not, in exercise of power of judicial review, interfere even if a procedural aberration or error in assessment or prejudice to a tenderer, is made out”.
A private firm had sought intervention after his bid was rejected during the tender process adopted for outsourcing supply of diet (dry and cooked) to the district headquarters hospital in Sambalpur.While dismissing the private firm’s petition, the bench said the power of judicial review will not be permitted to be invoked to protect private interest at the cost of public interest, or to decide contractual disputes. The tenderer or contractor with a grievance can always seek damages in a civil court.
“Attempts by unsuccessful tenderers with imaginary grievances, wounded pride and business rivalry, to make mountains out of molehill of some technical/procedural violation or some prejudice to self, and persuade courts to interfere by exercising power of judicial review, should be resisted”, the bench said.
The State has the right to refuse the lowest or any other tender, provided it tries to get the best person or the best quotation, and the power to choose is not exercised for any collateral purpose or in infringement of Article 14, the bench said citing Supreme Court rulings.