Krsnaa Diagnostics Pvt. Ltd. Vs. State of Madhya Pradesh & Ors.

Madhya Pradesh High Court (Division Bench (DB)- Two Judge)

WRIT PETITION, 16878 of 2020, Judgment Date: Feb 22, 2021

Law laid down - 

Article 226 of the Constitution and Clause-17 of NIT - contractual matters – Notice inviting tender – Cancellation of NIT based on the relevant Clause permitting the Department to cancel the NIT without assigning reason is not beyond the scope of judicial review.

Judicial review – In contractual matters also the Court can examine following factors:-

(i) Whether decision making authority has exceeded its authority?

(ii) Whether he committed any error of law?

(iii) Whether rules of natural justice are breached by him?

(iv) Whether he arrived to a decision which hits Wednesbury principles of reasonableness? (v) Whether he abused its power?

Contractual matter – Judicial review - It can be made on the ground of arbitrariness, unreasonableness and when it attracts public interest.

Tender NIT – Tender ConditionFinancial Evaluation. The main NIT was issued by respondent No.3 department. Its amendment/modification can be done by department only. The consultancy agency (HITES) is not competent to provide “revised conditions”/parameters of the NIT.

Cancellation of NIT – Judicial review - If NIT is cancelled because revised/amended parameters created confusion, no judicial interference is required.

Krsnaa Diagnostics Pvt. Ltd. Vs. State of Madhya Pradesh & Ors.