In Brief
Montecarlo Ltd sought to challenge NTPC's rejection of its bid for operating coal mines on the ground that it was technically non-responsive. NTPC's Technical Committee determined that Montecarlo lacked necessary drilling experience for blasting purposes. The High Court upheld the rejection. The Supreme Court dismissed Montecarlo's appeal, holding that in tender disputes involving complex technical subjects, courts must defer to the tender-authoring employer's interpretation of qualifying criteria unless there is mala fide or perversity. Technical evaluation by courts is impermissible. The owner is entitled to judicial restraint and free play in contract decision-making, provided the decision is not arbitrary, biased, or irrational."
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