AI Overview...
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Prohibition on Parallel Committees for Procurement Post-Agreement
Once a tender agreement has been executed, forming a parallel committee for procurement is generally not permissible. Courts have consistently held that the terms of the tender and the procurement process are within the domain of the contractual agreement and are not subject to judicial scrutiny or interference, especially once the contract is legally executed. Any deviation or formation of a parallel committee could undermine the contractual process and violate established procurement guidelines.
References: B. R. Ganesh VS State of Karnataka - Karnataka, V.D. Satheeshan M.L.A., S/o. Damodara Menon vs State Of Kerala, Represented By The Chief Secretary, Government Secretariat, Thiruvananthapuram - Kerala, Rishabh Swadeshi (JV), through its Authorized Signatory Ashok Kumar Taneja VS Jharia Rehabilitation & Development Authority, through its Managing Director, Hatia More - Jharkhand -
Tender Process and Judicial Review
Judicial review under Article 226 of the Constitution is limited in tender-related disputes. Courts have emphasized that the tender process, including its terms and conditions, is primarily a matter of contractual obligation and administrative discretion. Challenges based on procedural discrepancies or irregularities are scrutinized, but courts generally refrain from interfering unless there are clear violations or arbitrariness.
References: M/S BHARAT CONSTRUCTION (I) PRIVATE LIMITED THROUGH ITS AUTHORISED SIGNATORY SH. JAI PAL SINGH vs M/S HIMACHAL PRADESH ROAD INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED (HPRIDCL) - Himachal Pradesh, Sabhari Electricals & KCP Engineers Pvt. Ltd. VS State of Telangana, Department of Municipal Administration & Urban Development, Secretariat, Hyderabad, rep. by its Prl. Secretary - Telangana, VOLTAS LIMITED VS UNION OF INDIA - Gujarat -
Irrelevance of Parallel Committees in Contract Execution
The formation of a second or parallel committee after the award and execution of a tender contract is viewed as unnecessary and potentially illegal, as it may conflict with the original contractual terms. Such actions could be seen as an attempt to interfere with the contractual process, which courts tend to discourage once the agreement is in place.
References: V.D. Satheeshan M.L.A., S/o. Damodara Menon vs State Of Kerala, Represented By The Chief Secretary, Government Secretariat, Thiruvananthapuram - Kerala, Rishabh Swadeshi (JV), through its Authorized Signatory Ashok Kumar Taneja VS Jharia Rehabilitation & Development Authority, through its Managing Director, Hatia More - Jharkhand -
Legal and Procedural Integrity of Tendering
The integrity of the procurement process is upheld when procedures are followed correctly. Challenges to the process, such as claims of irregularities or lack of transparency, are examined but do not justify the formation of parallel committees once the contract has been executed, unless procedural violations are proven to be substantial and affecting the contract's validity.
References: Ajay Mishra vs Central Bureau of Investigation - Allahabad, Sonani Industries Pvt. Ltd. VS Prime Diamond Tech - Gujarat -
Conclusion
Based on the legal precedents and constitutional principles, once a tender agreement has been executed, forming a parallel committee for procurement is generally impermissible. Courts emphasize respecting the contractual process and discourage interference that could undermine the integrity and finality of the procurement process. Any challenge to the tender must be addressed within the framework of judicial review, but not through creating parallel decision-making bodies post-contract.
References:
- B. R. Ganesh VS State of Karnataka - Karnataka, M/S BHARAT CONSTRUCTION (I) PRIVATE LIMITED THROUGH ITS AUTHORISED SIGNATORY SH. JAI PAL SINGH vs M/S HIMACHAL PRADESH ROAD INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED (HPRIDCL) - Himachal Pradesh, STATE OF KERALA vs NIL - Kerala, Sabhari Electricals & KCP Engineers Pvt. Ltd. VS State of Telangana, Department of Municipal Administration & Urban Development, Secretariat, Hyderabad, rep. by its Prl. Secretary - Telangana, VOLTAS LIMITED VS UNION OF INDIA - Gujarat, Learning Leadership Foundation, Chennai VS S. S. School Transports Pvt. Ltd. , Chennai - Madras, V.D. Satheeshan M.L.A., S/o. Damodara Menon vs State Of Kerala, Represented By The Chief Secretary, Government Secretariat, Thiruvananthapuram - Kerala, Rishabh Swadeshi (JV), through its Authorized Signatory Ashok Kumar Taneja VS Jharia Rehabilitation & Development Authority, through its Managing Director, Hatia More - Jharkhand, Ajay Mishra vs Central Bureau of Investigation - Allahabad, Sonani Industries Pvt. Ltd. VS Prime Diamond Tech - Gujarat
Search Results for "Parallel Committee Cannot be Formed for Procurement once the Agreement by Tender has been Executed"
2013 0 Supreme(Kar) 283 • India - Karnataka
N.KUMAR, B.V.NAGARATHNA
The first is, that the party issuing the tender has the right to party issuing tender cannot deviate from the guidelines at all in ... The terms of the invitation to tender cannot be open to judicial scrutiny because the invitation to tender is in the realm of contract ... The Courts cannot interfere with the terms of the tender prescribed by the Government because it feels that some other terms in the ... They cannot maintain #HL_S....
• India - High Court of Himachal Pradesh
MR. JUSTICE TARLOK SINGH CHAUHAN, MR. JUSTICE STAYEN VAIDYA, JJ
Respondents maintained that the tender requirements were met, and correspondence during the tender process was appropriate. ... the award of a tender was grounded on alleged procedural discrepancies in bid submissions. ... (A) Constitutional Law - Judicial Review - Writ Jurisdiction under Article 226 - Tender Process - The petitioner's challenge against ... The author of the tender document i.e. respondent No.1, cannot be said to be unreasonable in holding out a similar interpretation ....
2007 Supreme(Online)(KER) 37719 • India - High Court of Kerala
K.R. UDAYABHANU, J
The case involves a revision petition by the State against the Special Judge's order requiring sanction for prosecuting a former ... P & E Pvt.Ltd. was chosen as the firm for importing palmolein officially by the State Government and further executed the agreement with M/s. ... It is pointed out that the agreement in between the K.S.C.S.C and M/s. P & E. Pvt.Ltd. was executed after obtaining the approval from the Government of India on 26-11-1991. ... It is alleged that the agreement ....
2019 0 Supreme(Telangana) 205 • India - Telangana
P.NAVEEN RAO
Constitution of India, 1950 – Article 226 – Tender notification was issued by the respondent no.1 calling ... (Para 52 and 53) Facts of the case: Tender notification dated 31.1.2018 was issued by ... Thus, MOCKUP test plays crucial role – A bidder who failed to clear MOCKUP test on field and twice in laboratory tests cannot be ... As per tender notification the work was to be executed in 15 months. ... It is seen from the minutes of Tender Committee dated 04.04.2018, ....
2001 0 Supreme(Guj) 77 • India - Gujarat
D.M.DHARMADHIKARI, P.B.MAJMUDAR
, it cannot be said that the decision arrived at by the Committee suffers from the vice of arbitrariness or favouritism. ... (a) Constitution of India, 1950 - Art. 226 - Writ - Contractual liability - Tender called for - Petitioner also submitted tender ... respondent No. 3, it cannot be said that the said decision is in any way discriminatory or arbitrary. ... It is pointed out that with a view to ensuring that the procurement is made in the right way, IPR has set up various #HL_STAR....
2021 0 Supreme(Mad) 337 • India - Madras
M.SUNDAR
it is to be concluded on a separate platform, besides being inevitably and inextricably intertwined with arbitral disputes, it cannot ... arbitration clause or reference does not hold water, as reference was qua all disputes that have arisen between the parties which means procurement ... be gainsaid that AT has travelled beyond scope of reference owing to the width and scope of arbitration agreement and reference ... Thereafter, in 2010, SSL was formed / incorporated and another agreement dated 10.02.2....
2025 0 Supreme(Ker) 2636 • India - IN THE HIGH COURT OF KERALA AT ERNAKULAM
NITIN JAMDAR, CJ., BASANT BALAJI
The petitioners argue that the contract was awarded without proper transparency and adherence to procurement guidelines, claiming ... Litigation - The petition seeks to quash the contract awarded for the Safe Kerala Project due to alleged irregularities in the tender ... The state defended the project as necessary for traffic safety improvement, asserting that the tender process followed all lawful ... A security deposit of ₹6 crores was remitted to the 6th Respondent, and the service level agreement (Exhibit P14) was #H....
2020 0 Supreme(Jhk) 885 • India - Jharkhand
RAJESH SHANKAR
Jharkhand Public Works Department Code, 2012 - Rule 163(d) – Constitution Of India, 1950 - Article 226 - Tender ... unreasonableness, mala fide and biasness in decision making process of respondent authorities so as to make any interference with tender ... JRDA/VA/IFB-06/2018-19 to the respondent nos.4 and 5 is wholly illegal, arbitrary and unconstitutional and consequently to direct the respondent nos.1 to 3 to recall/rescind any letter of authority issued and/or agreement executed in their favour. ... It has been submi....
2025 0 Supreme(All) 2842 • India - IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
SANJAY KUMAR SINGH
Charges framed included conspiracy and cheating without following proper procurement procedures. ... is designated a criminal conspiracy: Provided that no agreement except an agreement to commit an offence shall amount to a criminal conspiracy unless some act besides the agreement is done by one or more parties to such agreement in pursuance thereof. ... That at the above mentioned time and place, you, the accused conspired among themselves with ill intention and without following the tender#H....
2024 0 Supreme(Guj) 474 • India - Gujarat
BIREN VAISHNAV, DEVAN M. DESAI
who formed a rival firm accused of utilizing proprietary HPHT technology without consent. ... 27 of the Indian Contract Act as no specific agreement established exclusive rights or confidentiality obligations to support the ... The plaintiff claimed rights based on a Know-How Agreement with a foreign entity and alleged copyright infringement regarding the ... The know how agreement is executed in favour of Tenth diamond planet Private Limited. Thus, the agreement is not execu....
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