M. N. SHUKLA, J.

( 1 ) THIS writ petition raises some constitutional and legal questions of considerable importance. The phenomenon has been noticed by jurists as well as Courts which have had occasion to decide such matters, that the ramifications of governmental functions and State activities in this era of welfare State are fast expanding. A necessary concomitant of this is the anxiety to keep the state within bounds and not permit it in the course of its stride to ride rough shod over certain well established guarantees and safeguards enjoyed by the people. This has resulted, inter alia, in importing some salutary inhibitions even in the realm of administrative law which until sometime ago was regarded as comparatively immune from constitutional restraints. The development of this aspect of law is clearly revealed in cases where the State indulges in such activities as carrying on business, making of a contract etc. , functions which are undertaken by the State obviously in the exercise of its statutory or executive authority.

( 2 ) THE instant case arises out of a contest between rival tenderers for supplying medicines to the swarup Rani Nehru Hospital, Allahabad (hereinafter