In Brief
The petitioner firm applied for tenders worth Rs. 53 and 72 crores respectively, but was rejected as ineligible. The respondent argued that the petitioner and its sister company (with common partners/directors) were 'Related Firms' under the Manual on Contracts, and the sister company had adverse remarks and failed to renew its enlistment. The Supreme Court held that: (1) the firms are indeed 'Related Firms' sharing a business relationship; (2) adverse remarks against the sister company could validly be used against the petitioner; (3) tender rejections need not be accompanied by speaking orders as they are administrative, not quasi-judicial decisions; and (4) only companies incorporated under the Companies Act, 1956, can be enlisted as 'SS' Class contractors—partnership firms are ineligible. The appeal was dismissed with significant emphasis on judicial restraint in tender disputes.
The lawyer headnote and full judgment text are available to registered users.