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Supreme Court of India 2021-04-09 allowed

M/S UTKAL SUPPLIERS vs M/S MAA KANAK DURGA ENTERPRISES & ORS

Bench: 2 — Rohinton Fali Nariman, B.R. Gavai

In Brief

A hospital issued a tender for diet catering services requiring bidders to have a valid labour licence under the Contract Labour Act and three years' relevant experience. The appellant was the lowest financial bidder but was disqualified along with another bidder for lacking a proper labour licence. The appellant was awarded the contract. However, a disqualified bidder challenged this before the High Court, which found the appellant's requirements unsatisfied and directed the contract be awarded to the disqualified bidder instead. The Supreme Court set aside the High Court's judgment, holding that the tendering authority—not the courts—is the best judge of its own tender interpretation and requirements. Judicial review is confined to examining the manner of decision-making, not substituting the court's interpretation for the authority's, absent mala fide or perversity. The appellant's appeal was allowed.

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