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2023 Supreme(SC) 4

D. Y. CHANDRACHUD, HIMA KOHLI
Indian Medicines Pharmaceuticals Corporation Ltd. – Appellant
Versus
Kerala Ayurvedic Co Operative Society Ltd. – Respondent


Advocates appeared:
For the Appellant :Vardhman Kaushik, Advocate
For the Respondent:Nishe Rajen Shonker, Gurmeet Singh Makker, Vishnu Shankar Jain, Vishnu Shankar Jain, Vishnu Shankar Jain, Vishnu Shankar Jain, Pallavi Pratap, Advocates

JUDGMENT :

D.Y. Chandrachud, CJI.

This judgment has been divided into the following sections to facilitate analysis:

This judgment has been divided into the following sections to facilitate analysis:

1.0

Facts

3

2.0

Submissions

7

3.0

Analysis

10

3.1

State Largesse: conflation of power and duty

11

3.2

Judicial review of government contracts: extent and ambit

11

3.2.1

Tender: a constitutional requirement?

14

3.3

Interpretation of Paragraph 4(vi)(b) of the Operational Guidelines

19

3.4

Validity of award of Government contract to IMPCL

21

1. The first respondent, Kerala Ayurvedic Co-operative Society Limited, instituted proceedings before the Lucknow Bench of the High Court of Judicature at Allahabad under Article 226 of the Constitution to challenge an order for the purchase of Ayurvedic medicines issued by the State of Uttar Pradesh in favour of Indian Medicines Pharmaceutical Corporation Limited,1[“IMPCL”]. By a judgment dated 18 October 2019, a Division Bench of the High Court allowed the pet


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