RAJ KISHORE SAHOO Vs. STATE OF ODISHA

JUDGEMENT

(1.) No person can claim a fundamental right to carry on a business with the Government, and in a matter of formulating conditions of tender documents and awarding the contract, greater latitude is required to be conceded to the State authorities. Unless the action of the tendering authority is found to be malicious and misuse of statutory powers, interference by the Court exercising power of judicial review is not warranted. Though, the Courts can scrutinize the award of contracts by the Government or its agencies in exercise of their powers of judicial review to prevent arbitrariness or favoritism, there are, however, limitations in exercise of power of judicial review in such matters, which have been succinctly laid down by the Supreme Court in its various decisions; [see Tata Cellular v. Union of India, (1994) 6 SCC 651; M/s. ICOMM Tele Ltd. vs. Punjab State Water Supply and Sewerage, (2019) 4 SCC 401; M/s. Michigan Rubber (I) Ltd. vs. State of Karnataka and Others, (2012) 8 SCC 216].

(2.) There is a long line of decision on limited scope of judicial review in exercise of power under Article 226 of the Constitution of India concerning terms of invitation to tender, the same being in realm of contract. With these settled legal premise in mind, I proceed to address the challenge made by the writ petitioner to the stipulation in the minimum eligibility criteria for the registered contractors for qualifying in the technical bid i.e. the registered contractors should have successfully completed RCC Drain, RCC Culvert, RCC Bridge work of single agreement amount not less than 30-40% of the amount put to tender in any one financial year.

(3.) The short facts of the case as pleaded in the writ petition are that the City Engineer, Bhubaneswar Municipal Corporation (Opposite Party No.4) invited e-tender vide Tender Bid Reference No.BMC-DD-CE-04/2023-24 dtd. 7/10/2023 for the work 'Construction of RCC Drain from backside of Reliance Fresh to Br- 579 connecting to Railway Culvert Area, Drain No.5 in Ward No.41' with an estimated cost of Rs.3,26,15,648.00.