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2021 Supreme(J&K) 492

IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT SRINAGAR
Ali Mohammad Magrey, Sanjay Dhar, JJ.
M/s. Creations, Architects, Engineers, Planners, Interior Designers - Appellant
Versus
Union Territory of J&K and Ors. - Respondents
LPA No.158/2021 and CM No.7665/2021
Decided On : 23-11-2021

Advocates Appeared:
For the Appellant :Mr. G.A. Lone, Advocate with Mr. S.N. Ratanpuri, Advocate.
For the Respondent: Mr. M.A. Chashoo, AAG.

Headnote:

(A) Government Contract-Tender-As per settled legal position, tender issuing authority is best judge of its interests/ needs and that it is always open to said authority to suitably put work required to be completed to tender as per relevant terms and conditions so as to best serve its purposes-Whenever a particular work is put to tender, it might hurt interests of someone or other, but, for that reason, said tendering process cannot be labelled as malafide or arbitrary-Courts are expected to exercise judicial restraint in interfering with administrative action, particularly in the matter of tender or contract-Ordinarily, soundness of decision taken by tender issuing authority ought not to be questioned, but decision-making process can certainly be subject to judicial review-Decision of Respondent-JKPCC in putting work in question to tender vide impugned NIT cannot be said to be one where they have acted in a manner in which no responsible authority acting reasonably and in accordance with relevant law would have acted-Claim of Appellant/ Writ Petitioner that since he had already provided Consultancy services with regard to work put to tender in terms of impugned NIT, as such, work could not have been subjected to fresh tender cannot hold ground inasmuch as there is no formal allotment order issued in favour of Appellant/ Writ Petitioner in this behalf. (Para 4)

(B) Government Contract-Scope of Judicial Review-In contracts having commercial element, some more discretion has to be conceded to authorities so that they may enter into contracts with persons keeping an eye on augmentation of revenue-But, even in such matters, they have to follow norms recognized by Courts while dealing with public property-It is not possible for Courts to question and adjudicate every decision taken by an authority because many of Government Undertakings, which in due course have acquired monopolist position in matters of sale and purchase of products, and with so many ventures in hand, they can come out with a plea that it is not always possible to act like a quasi-judicial authority while awarding contracts-Under some special circumstances, discretion has to be conceded to authorities who have to enter into contract by giving them liberty to assess overall situation for purpose of taking a decision as to whom contract be awarded and at what terms-If decisions have been taken in bonafide manner, although not strictly following norms laid down by Courts, such decisions are upheld on the principle that Courts, while judging constitutional validity of executive decisions, must grant certain measure of freedom of 'play in the joints' to executive. (Para 9)

Result-Appeal dismissed.

JUDGMENT :

Ali Mohammad Magrey, J.

Impugned in this appeal is Judgment dated 18th of November, 2021 passed by the learned Single Judge in the Writ Petition filed by the Appellant/ Writ Petitioner bearing WP(C) No. 2343/2021, whereby and whereunder the Petition of the Appellant/ Writ Petitioner stands dismissed.

2. The material facts leading to the filing of this appeal, as emerge from the pleadings on record, are that the Appellant/ Petitioner-firm claims to be a renowned Architectural-cum-Structural Consultancy, having expertise in the field. It is stated that in terms of communication No. PS/MD/7983-8005 dated 2nd of March, 2016, the Respondent-JKPCC empaneled as many as 23 Architectural and Structural firms for providing the Consultancy about the designs and structures, etc., of the buildings intended to be constructed by it, wherein the Appellant/ Writ Petitioner claims to have figured at Serial No.10. It is also pleaded that ever since the said empanelment, the Appellant/ Writ Petitioner provided Consultancy for Designs and Structural works undertaken by the Government in the erstwhile State of Jammu and Kashmir (now Union Territory) in regard to series of buildings, although no formal orders for providing Consultancy were being issued, but, under the agreed arrangement, a specified percentage calculated on the basis of cost of construction works was being assessed and paid. It is averred that the process of Consultation by the Respondent-JKPCC with the Appellant/ Writ Petitioner as regards the work put to tender by medium of the impugned NIT dated 3rd of November, 2021 was already initiated way back in the year 2018 and that the Appellant/ Writ Petitioner was selected for providing and, accordingly, provided the Drawing and Structural Consultancy on the basis of his previous performance and comparative assessment of suitability among the approved Consultants who were empaneled along with the Appellant/ Writ Petitioner. In these circumstances, the Appellant/ Writ Petitioner, being aggrieved of the impugned tender notice, filed Writ Petition bearing WP(C) No. 2343/2021 seeking quashing of the impugned tender notice. Simultaneously, the Appellant/ Writ Petitioner had also sought a direction in the name of the Respondent-JKPCC to continue Consultancy allotted to it in respect of the construction tendered vide the impugned NIT; as well as to pay the amount already due towards the Appellant/ Writ Petitioner from the Respondent-JKPCC. The learned Single Judge, after hearing the Counsel for the parties, in terms of Judgment dated 18th of November, 2021, dismissed the Petition filed by the Appellant/ Writ Petitioner as being devoid of any merit. It is this Judgment of the learned Single Judge that has been assailed by the Appellant/ Writ Petitioner in this appeal on the grounds projected in the memo of appeal.

3. We have heard the learned Counsel for the parties at length; perused the pleadings on record; and have considered the matter.

4. At the first blush, what requires to be stated, herein this case, is that as per settled legal position, the tender issuing authority is the best judge of its interests/ needs and that it is always open to the said authority to suitably put the work required to be completed to tender as per the relevant terms and conditions so as to best serve its purposes. Whenever a particular work is put to tender, it might hurt the interests of someone or the other, but, for that reason, the said tendering process cannot be labelled as malafide or arbitrary. It needs no repetition that the Courts are expected to exercise judicial restraint in interfering with the administrative action, particularly in the matter of tender or contract. Ordinarily, the soundness of the decision taken by the tender issuing authority ought not to be questioned, but the decision-making process can certainly be subject to judicial review. The soundness of the decision may be questioned, firstly, if the decision made is so arbitrar

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