JUDGMENT

Arijit Pasayat, J.-Leave granted in SLP (C) No. 23987/2002.

2. The Delhi Development Authority (herein after referred to as the DDA ) calls in question the legality of the judgment rendered by a Division Bench of the Delhi High Court whereby it has held that the act of the appellant in not awarding contract to the respondent No. 1 M/s UEE Electricals Engg. P. Ltd. was not in accordance with law. Though the contract awarded to the second respondent was not nullified, it was held by the High Court that the first respondent who was deprived of its right was entitled to costs to be paid by the appellant. Liberty was also granted to the respondent No.1 to file a suit for damages if it so thought appropriate.

3. Background facts as projected by the appellant DDA which need to be noticed are as follows:

In March 2001, tenders were invited by the appellant for the supply and installation of Clear Water Boosting Pumping Station at Command Tank No. 1 at Sector-7. Clause 10 of the Tender Notice indicated that the final decision, with respect to acceptance of the tender, rests with the Chief Engineer (Electrical) and there was no compulsion to accept the lowest tender. On 21.5.2001 Ashok