In Brief
The Supreme Court set aside a Division Bench order that had quashed tender conditions for supply of hologram excise labels, finding they were tailor-made to favour Uflex and Montage. The Court held that in commercial tender disputes, judicial review must be confined to arbitrariness, irrationality or mala fide—not commercial soundness. Unsuccessful bidders (Kumbhat and Alpha) cannot challenge tenders merely due to competitive loss. The Court found the technical specifications were reasonable, past-experience requirements were legitimate, and lifting corporate veil between Uflex and Montage inappropriate. The Court also awarded substantial costs against the unsuccessful appellants to deter frivolous commercial litigation, emphasizing that costs must follow the event in commercial matters."
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