Micky Traders vs. L.R.Y. Labour Contractor & Ors. [2026 INSC 1025]

Contours of judicial review in the matters of tender


RELEVANT PARAGRAPH

14. The contours of judicial review in the matters of tender are well-settled and need only brief restatement. The principles governing judicial review of the award of a contract are well-settled. A three-Judge Bench of this Court in Tata Cellular (supra) held that the Court is concerned with the manner in which the decision is taken and not with the decision itself, that review lies on the grounds of illegality, irrationality and procedural impropriety, and that the tender floating authority is the best person to interpret the terms of its tender. In Sterling Computers Ltd. v. M&N Publications Ltd., it was held that what the Court examines is whether the decision-making process was reasonable, rational and not arbitrary or violative of Article 14, and not whether the decision was correct. In Air India Ltd. (supra), it was held that the State is free to enter into commercial transactions without undue interference by the courts, provided its action is fair and free from arbitrariness.

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