BRIDGEWAY ENGINEERING CO P LTD Vs. SOUTHERN RAILWAY

JUDGEMENT

(1.) Pursuant to the commissioning of the prestigious project of the Indian Railways, namely, Kongan Railway, the Southern Railway took up the work of doubling of the Shoranur - Mangalore line. Ext. P1 tender notification was issued by the Southern Railway on 26.6.1998 calling for tenders; inter alia, for the works covered by items 3(b) and 3(c), specifications of which are as follows:

(2.) The railways admit that the work was awarded to the 3rd respondent for Rs. 6,64,00,420/- and justifying their act by contending that the petitioner is a newly formed and inexperienced company which has not proved its competency for taking up such major projects. It is also contended that the rate quoted by it is too unrealistic and far below the estimate prepared by the railways, and that the grant of work to the petitioner would have led to their leaving work half way through and unfinished within the time schedule which would have led to difficulties for the railways and the travelling public and that it was bearing in mind the public interest involved, that a High Power Scrutiny Committee decided to recommend grant of the work to the third respondent in preference to the petitioner and that the final decision in the matter was taken by the General Manager of the Southern Railway with utmost bona fides.

(3.) The points that arise for consideration are: (1) Whether the grant of contract for item No. 3(b) of Ext. P1 to the third respondent is illegal, arbitrary and unjustified and (2) whether this is a fit case where this Court would be justified in interfering with the award of the contract in exercise of the power of judicial review