AIR 1994 SUPREME COURT 988

Supreme Court Of India

Hon'ble Judge(s): K. Jayachandra Reddy, G. N. Ray , JJ

(A) Constitution of India , Art.299, Art.14— Contracts or quotas - Issue of - Should not be arbitrary or irrational - Policy or principle imposing restrictions or reservations should be reasonable. Tenders - Grant of. It is, true, as it is today, that the Government in a welfare State has the wide powers in regulating and dispensing of special services like leases, licences, and contracts etc. The magnitude and range of such Government functions is great. The Government while entering into contracts or issuing quotas is expected not to act like a private individual but should act in conformity with certain healthy standards and norms. Such actions should not be arbitrary, irrational or irrelevant. In the matter of awarding contracts inviting tenders is considered to be one of the fair ways. If there are any reservations or restrictions then they should not be arbitrary and must be justifiable on the basis of some policy or valid principles which by themselves are reasonable and not discriminatory.(Para 7) (B) Constitution of India , Art.299, Art.14— Tender - Govt. reserving right either to accept or reject lowest offer - Exercise of. Tender - Right to accept or reject lowest offer - Exercise of. If the Government....