A Single Bench of the J&K&L High Court recently, while dealing with a Petition under Article 226 of the Constitution of India, observed that there is a very narrow scope of interference for a High Court while exercising its extraordinary jurisdiction under Article 226 of the Constitution in matters relating to tenders, being limited to preventing arbitrariness, irrationality, unreasonableness, and favouritism in the administrative actions of the State.
The Court was seized of a matter wherein the Petitioner, being a Contractor, had moved the Court challenging the State action whereby he, despite being declared as an L1 bidder, was not allotted the Contract. The State defended its action on the ground that the Tender Opening Committee while evaluating the bids observed poor competition amongst bidders, which would result in financial loss to the Government exchequer, and that as per the terms of the NIT, it reserved with itself the right to accept or reject any of the tenders before or after their opening without assigning any reasons.

The Hon’ble Court, while considering the issue, observed that the tendering authority knows best what is suited to them in terms of price and technology, and it does not lie within the domain of the Court under Article 226 of the Constitution to decide the suitability of a bid, as it lacks the requisite expertise. The Court further held that it is settled law that a Court in the exercise of its extraordinary jurisdiction under Article 226 of the Constitution should be slow in interfering with tender matters, especially in the absence of a plea of malafides against the State.