VidhiSangh

Supreme Court of India · 09/04/2021

M/S UTKAL SUPPLIERS versus M/S MAA KANAK DURGA ENTERPRISES & ORS.

[2021] 3 S.C.R. 391 · 2021 INSC 242

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Summary

The Supreme Court restored a hospital catering contract after the High Court substituted its interpretation of a labour-licence requirement for the tendering authority’s plausible reading. The tender, read as a whole, required a contract-labour licence, not merely registration of an establishment under the Orissa Shops Act. The allegation of mala fides lacked factual support. The successful bidder was to resume performance within one week.

Issues

  1. Whether the High Court could substitute establishment registration for the contract-labour licence required by the tendering authority.
  2. Whether mala fides justified interference with the tender award.

Provisions considered

Held

Result

Appeals allowed; High Court judgment set aside. Appellant to be restored within one week to complete performance under its agreement dated 27 November 2020.

Judgment PDF: Supreme Court of India, [2021] 3 S.C.R. 391.