JUDGMENT :

1. The Hon’ble Supreme Court in the landmark cases of Michigan Rubber (India) Ltd. v. State of Karnataka, (2012) 8 SCC 216 has laid down certain principles to be followed in matters pertaining to distribution of State largesse by way of tender. In paragraph 23 of the said judgment, the following has been stated :

“23. From the above decisions, the following principles emerge :

(a) The basic requirement of article 14 is fairness in action by the State, and non-arbitrariness in essence and substance is the heartbeat of fair play. These actions are amenable to the judicial review only to the extent that the State must act validly for a discernible reason and not whimsically for any ulterior purpose. If the State acts within the bounds of reasonableness, it would be legitimate to take into consideration the national priorities;

(b) Fixation of a value of the tender is entirely within the purview of the executive and the courts hardly have any role to play in this process except for striking down such action of the executive as is proved to be arbitrary or unreasonable. If the Government acts in conformity with certain healthy standards and norms such as awarding of contracts by