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S.N.PHUKAN, S.RAJENDRA BABU
Monarch Infrastructure Private LTD. – Appellant
Versus
Commissioner, Ulhasnagar Municipal Corporation – Respondent
Key Points: - The Government/tendering authority may act in public interest and avoid arbitrariness or discrimination in contract award. (!) (!) - The High Court's setting aside of Monarch Infrastructure’s award was justified due to non-fulfilment of Clause 6(a) before bids were accepted, and deletion of Clause 6(a) after acceptance raises fairness concerns. (!) - The Supreme Court held that despite deleting a tender condition, broader participation and public interest can justify continuing the tender process, potentially awarding to a higher responsive bid, subject to non-arbitrariness and fair treatment. (!) (!) - The Court affirmed that the Government may reject even the highest bid for valid, non-arbitrary reasons in public interest. (!) (!)
JUDGMENT
Rajendra Babu, J.-Leave granted in all the three sets of petitions.
2. Ulhasnagar Municipal Corporation issued a Notice inviting tenders for appointment of agents for collection of Octroi subject to the terms and conditions set forth therein fixing 4 p.m. on March 23, 2000 to be the time of submission of the tender and fixing 5 p.m. on the same day for opening of the tenders. On March 21, 2000 M/s. Milleniun Infrastructure (P) Ltd. filed a writ petition No. 1456 of 2000 in the High Court at Mumbai challenging the imposition of two conditions contained in Clauses 6(a) and 6(b) of the Tender Booklet as unconstitutional and seeking deletion of these two conditions as pre-requisite for its participation in the tender. On March 21, 2000, a Division Bench of the High Court and having heard the parties adjourned the matter till March 24, 2000 at 11 a.m. by making it clear that there shall be no interim relief except that the Ulhasnagar Municipal Corporation shall not issue work order till further orders. However, on March 23, 2000 M/s. Millenium Infrastructure (P) Ltd. withdrew the aforesaid writ petition. Five persons tendered their documents and papers and they are M/s. Konark In
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