Court's Interference in Contractual Matters : Some Legal Aspects
In Jagdish Mandal v State of Orissa [2006] GCtR 1792 (SC) it was explained that a Court before interfering in tender or contractual matters in exercise of power of judicial review, should pose to itself the following questions:-
(i) Whether the process adopted or decision made by the authority is mala fide or intended to favour someone?
Or Whether the process adopted or decision made is so arbitrary and irrational that the court can say "the decision is such that no responsible authority acting reasonably and in accordance with relevant law could have reached?
(ii) Whether public interest is affected?
It was then held that if the answers to the said two questions are in the negative, there should be no interference with the tender process under Article 226 of the Constitution of India.
Written by
Vishal
Delhi
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