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HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR
PRAVEER BHATNAGAR
RC Power Project Limited – Appellant
Versus
State Of Rajasthan, Through Additional Chief Secretary, Department Of Energy – Respondent
JUDGMENT :
PRAVEER BHATNAGAR, J.
1. These two writ petitions, having been heard together, are decided by this common judgment.
2. The present writ petitions under Article 226 of the Constitution of India arises out of and relates to the tender process initiated by the respondent– Jaipur Vidyut Vitran Nigam Limited, (hereinafter, to be referred as 'JVVNL') under Tender-NIT No. JVVNL/SE(TW)/TN-545 & JVVNL/SE(TW)/TN-546 and the contract awarded pursuant thereto for execution of works relating to 33/11 KV Grid Sub-Stations on 'BOOT' model basis.
3. The petitioner has approached this Court assailing the termination of the said contract vide order dated 09.04.2025, along with the consequential actions including issuance of show- cause notice and the order of debarment dated 13.08.2025 and has prayed for quashing of the said orders on the ground that the same are arbitrary, violative of the principles of natural justice, contrary to the terms of the contract and in breach of the provisions of the Rajasthan Transparency in Public Procurement Act, 2012 (in short, ‘Act of 2012’) and the Rajasthan Transparency in Public Procurement Rules, 2013 (in short, ‘Rules of 2013’) framed thereunder.
Argumen
Judicial review in government contracts is limited, ensuring non-arbitrariness, and contract termination on grounds of corruption can occur without pre-notice when grounded in statutory provisions.
Termination and blacklisting of a contractor based on poor performance is justified, provided due process is followed in accordance with statutory provisions.
Public authorities must act fairly and cannot arbitrarily terminate contracts without justification, reinforcing the legitimacy of expectations within public-private partnerships.
The court affirmed that a bidder's disqualification due to false declarations in tender processes is valid, emphasizing limited judicial review in contractual matters.
The judgment emphasizes the limited scope of judicial review in contractual matters and the importance of fair play in the decision-making process. It highlights the freedom of the respondents to awa....
Judicial review is permissible in contractual disputes involving public law elements, but the existence of an arbitration clause limits the scope of such review.
The court reinforced that the existence of an arbitration clause limits the scope for judicial intervention in contractual disputes involving the state.
The court upheld the termination of a consultancy contract due to the appellant's failure to perform obligations, affirming the right to invoke arbitration for grievances.
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