IN THE HIGH COURT AT CALCUTTA
MOUSHUMI BHATTACHARYA, J.
Hindustan Petroleum Corporation Limited & Ors. - Applicants
Versus
Ghosh Oil Movers & Anr. - Respondents
RVW No. 253 of 2022 in W.P.A. No. 24254 of 2022 With CAN No. 1 of 2023
Decided On : 02-08-2023
Review - Tender Rejection - The Code of Civil Procedure, 1908 - Article 226 of the Constitution - Section 22(3)(f) of The Administrative Tribunals Act, 1985 - Writ Court's power to review its own order - Interpretation of tender terms - New and important matter - Error apparent on the face of the record
Fact of the Case:
The review application arises from an order quashing the rejection of the petitioners' bid for a transportation tender. The review applicant sought review based on a subsequent judgment and order that dismissed similar writ petitions on the grounds of Clause 3 of the Tender Notice.
Finding of the Court:
The Court found that the subsequent judgment constituted new and important matter, justifying a review of the previous order. It also considered the power of a writ Court to review its own order and the interpretation of tender terms.
Issues: The issues involved the review of a previous order in light of a subsequent judgment, the conditions for a review under The Code of Civil Procedure, 1908, and the power of a writ Court to review its own order.
Ratio Decidendi: The Court held that the subsequent judgment constituted new and important matter justifying a review. It also considered the principles of Order XLVII Rule 1 of the CPC and the interpretation of tender terms.
Final Decision: The review application was granted, and the operation of the previous order was stayed.
JUDGMENT :
Moushumi Bhattacharya, J.
1. The application of Review arises out of an order passed by this Court on 23rd November, 2022 in WPA 24254 of 2022 which sought for quashing of the respondents’ decision to reject the petitioners’ bid. By the order under review, the Court directed quashing of the rejection of the petitioners’ bid as communicated to the petitioners on 15th November, 2022 and the writ petition was disposed of on that basis.
2. The review applicant seeks review of the order primarily on the ground of a subsequent judgment and order passed by this Court on 2nd March, 2023 in WPA 24259/ 2022 (M/s. Moumita Logistics & Anr. Vs. Hindustan Petroleum Corporation Ltd. Ors.) and a related writ petition being WPA 24265 of 2022 (Ajit Kumar Murmu Vs. Hindustan Petroleum Corporation Ltd. Ors.). By the judgment and order dated 2nd March, 2023, both the writ petitions were dismissed on the facts of the case and particularly on Clause 3 of the Tender Notice dated 13th January, 2022.
3. The brief facts which are relevant for the decision on the present application are that the respondents (writ petitioners) participated in a tender floated by the review applicants HPCL (respondents in the writ petition) for transportation of bulk products for Mughalsarai in January, 2022. The petitioner also participated in a subsequent tender floated by the respondents for Haldia in April, 2022. Clause 3 of the tender document contains a restriction on the tenderer to offer the same Tank Trucks for each location in the event there being more than one tenders. The Clause required that a tenderer should offer separate sets of Tank Trucks for each location and further that violation of this Clause would result in the contract being terminated for all the locations. The petitioners came to the Court against the rejection of the petitioners’ bid for the Mughalsarai Tender and the Court by the judgment and order under review dated 23rd November, 2022 quashed the rejection of the petitioners’ bid.
4. Learned counsel appearing for the review applicants submits that the order dated 23rd November, 2022 should be reviewed in light of the subsequent judgment and order passed by this Court on 2nd March, 2023 in Moumita Logistics. Counsel submits that this is a new and important fact which has come to light only subsequently and further that the Court has ample powers in the writ jurisdiction to review its own orders.
5. Learned counsel appearing for the respondents (writ petitioners) submits that the review does not fulfil the conditions under Order XLVII Rule 1 of The Code of Civil Procedure, 1908. Order XLVII Rule 1 of the CPC requires the presence of three conditions for a review to be maintainable. These include discovery of new and important matter or evidence which was not within the knowledge of the party applying for the review at the time of passing of the decree or order despite exercise of due diligence. The second condition is of an error apparent on the face of the record while the third is for any other sufficient reasons.
6. The Supreme Court has also held in several decisions from 1963 onwards that a Constitutional Court exercising power under Article 226 can review its own order as an inherent power of a Court of plenary jurisdiction in order to prevent miscarriage of justice or correcting grave and palpable error committed by it : Ref. AIR 1963 SC 1909.
7. The aforesaid view was carried to latter decisions of 2014 and 2015; State of Rajasthan & Anr. Vs. Surendra Mohnot & Ors., (2014) 14 SCC 77 and State of Jammu and Kashmir Vs. R.K. Zalpuri & Ors., (2015) 15 SCC 602.
8. The decisions shown on behalf of the respondents/writ petitioners refers to the power of a Tribunal to review its order/decision under Section 22(3)(f) of The Administrative Tribunals Act, 1985 and primarily relies on Order XLVII Rule 1 of the CPC.
9. Although the settled position is that there is nothing in Article 226 of the Constitution which would preclude a writ Court from r
The main legal point established is the Court's consideration of new and important matter as a ground for review, the application of Order XLVII Rule 1 of the CPC, and the interpretation of tender te....
Point of law: powers of judicial review are limited and while exercising such power the Court has to see whether the process adopted or decision made by the authority is malafideor is intended to fav....
Judicial review in tender matters is narrowly circumscribed. A court should only interfere if the procuring authority's action is arbitrary, irrational, or malafide. Mandatory tender conditions must ....
The judgment emphasizes the parameters for judicial review in contractual matters and the factors that make an impugned order subject to interference.
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