In Brief
The Supreme Court upheld the State of Jharkhand's cancellation of a tender for construction of the Icha Dam. Although 10 contractors attended pre-bid meetings, restrictive specifications (unauthorised departures from standard bidding documents) meant only 3 submitted bids, with only 1 deemed responsive. The tender committee cancelled the tender to increase competition and re-invited under standard norms. The High Court had set this aside, but the Supreme Court held that Government has a constitutional right to reject tenders or cancel the process without assigning reasons. With genuine competition reduced by restrictive conditions, re-tendering was reasonable and not arbitrary. Courts must not substitute their judgment for procurement authorities on judicial review absent mala fide or unreasonableness.
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