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

Citation: [2019] 11 S.C.R. 792 · Decided: 28-08-2019 · Supreme Court of India · Bench: S. ABDUL NAZEER · Disposal: Appeal(s) allowed

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2019] 11 S.C.R.
M/S N RAMACHANDRA REDDY
v.
THE STATE OF TELANGANA & ORS
(Civil Appeal No. 6673 of 2019)
AUGUST 28, 2019
[S. ABDUL NAZEER AND R. SUBHASH REDDY, JJ.]
Tender:
Tender for construction of road –  As per tender condition
‘Batch Type Hot Mix Plant’ owned by the bidder was required to be
located within a distance of 100 kilometers from the last point of
working reach –  Letter of intent issued to the appellant –  Complaint
by another bidder (respondent No.4) disputing the correctness of
distance in the case of the appellant – In verification report
Superintending Engineer found the actual distance at 101.50 km.
and from alternate route found the distance at 99.90 km. –  Finding
in the report again questioned by respondent No. 4 –  By another
verification report by another Superintending Engineer of another
jurisdiction, the distance was found as 98.1 km. –  Tender finalized
in favour of appellant – Writ petition – Single Judge of High court
dismissed the petition – In writ appeal Division Bench of High Court
allowing the appeal found fault with the report of the superintending
Engineer in giving distance particulars from the alternate route and
found that subsequent report not being of jurisdictional engineer
could not have been relied upon – Appeal to Supreme Court – Held:
There is nothing wrong in the first report, mentioning the distance
from alternate route – In the absence of any prescribed procedure
for verification, it was fair to call for  report from an independent
Superintending Engineer of different jurisdiction – The procedure
adopted by tendering authority is fair, just and reasonable.
Judicial Review:
Scope of judicial review – In matter relating to contracts and
tenders – Held: In matter relating to contracts/tenders, courts cannot
sit as appellate court while exercising power of judicial review –
Such power is called for only if the approach is arbitrary or mala
fide or procedure adopted is meant to favour someone.
   [2019] 11 S.C.R. 792
792
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Letters Patent:
Intra-court appeal – Power of court – Scope of – Held:
Appellate Bench not to disturb the finding of Single Judge unless
such finding is concluded as perverse.
Constitution of India:
Art. 136 – Jurisdiction under – Nature of – Held: Jurisdiction
u/Art. 136 is corrective jurisdiction to settle the law.
Allowing the appeal, the Court
HELD: 1.1 It is clear from the condition relating to work in
question, which is to be construed as essential, that the bidder
shall own a ‘Hot Mix Plant’ within a distance of 100 kilometers
from the last point of working reach. As per clause 22.6 of the
tender conditions, the result of evaluation of Part-I of the bids
shall be made public on e-procurement systems, following which,
there shall be a period of five working days, during which, any
bidder may submit complaint, which shall be considered, before
opening Part-II of the bid. Once a complaint is filed, there is no
definite procedure prescribed as to how such complaint is to be
dealt. [Para 29][804-G; 805-A-B]
1.2 In the present case, it is clear from the material on
record that, when a complaint is filed by the fourth respondent/
writ petitioner, after evaluation of Part-I of the bids, at first
instance, a report is prepared by the Superintending Engineer,
Warangal dated 30.05.2018, stating that as per the route given
by the appellant, distance is 101.50 kilometers and if measured
from the alternate route it comes to 99.90 kilometers. It is the
specific case of the appellant that it has not made any request for
measuring the distance from the alternate route. In view of the
variation in distance, from its earlier report, it appears, the Chief
Engineer has requested the Superintending Engineer,
Karimnagar, to verify and report. The Superintending Engineer,
vide his report dated 04.07.2018, informed the Chief Engineer
that he has measured the distance from the ‘odometer’ and the
distance between the Hot Mix Plant and the last point of working
reach was 98.1 kilometers. Accepting the said report, bid of the
M/S N RAMACHANDRA REDDY v. THE STATE OF
TELANGANA & ORS
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SUPREME COURT REPORTS
[2019] 11 S.C.R.
appellant was opened and it is clear from the record that the offer
of the appellant is nearly Rupees Twenty Lakh less than the rate
quoted by the fourth respondent/writ petitioner.  [Para 29][805-
B-E]
1.3 There is no dispute that appellant owns a ‘Hot Mix
Plant’, as required in 

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