Chief Executive Officer and Vice Chairman Gujarat Maritime Board vs Asiatic Steel Industries Ltd and Ors

Bench: 2 — S. Ravindra Bhat

In Brief

The Gujarat Maritime Board invited bids for shipbreaking plots at Sosiya. Asiatic Steel Industries won the highest bid and paid Rs 3.61 crore. It later discovered the plot unsuitable due to rocks and connectivity issues, and requested a refund. The Board initially delayed but eventually agreed to refund. The High Court directed interest at 6% from 08.11.1994 to 19.05.1998. The Supreme Court held the Board acted arbitrarily and discriminatorily by delaying the refund despite granting identical relief to similarly placed bidders. The Court upheld the interest award but modified the start date to 22.03.1995 (date of principal payment) rather than 08.11.1994.

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Administrative Law Contract Law Public Law Public Procurement Refund of Consideration Interest on Deposits Arbitrariness and Discrimination Judicial Review Writ Jurisdiction Rule of Law

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