VidhiSangh

Supreme Court of India · 28/08/2019

M/S N RAMACHANDRA REDDY versus THE STATE OF TELANGANA & ORS

[2019] 11 S.C.R. 792 · 2019 INSC 970

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Summary

The Court restored dismissal of a challenge to a road contract awarded to the lowest bidder. When the rival bidder disputed whether the successful bidder’s hot-mix plant was within the required 100 kilometres, the Chief Engineer obtained an independent verification showing compliance. With no prescribed complaint-verification procedure, this was a fair inquiry rather than a relaxation of an essential tender condition. The Division Bench had wrongly rejected the report because its author was an engineer from another circle.

Issues

  1. Whether the tendering authority could seek independent distance verification from an engineer outside the local circle to resolve a bidder’s complaint.
  2. Whether the High Court could overturn the award on that ground despite absence of a prescribed verification procedure or specific mala fides.

Held

Result

Appeal allowed. Division Bench order dated 13 March 2019 set aside; Single Judge’s dismissal of the writ petition restored, sustaining the tender award. No order as to costs.

Judgment PDF: Supreme Court of India, [2019] 11 S.C.R. 792.