Surguja Bricks Industries Co. v. State of Chhattisgarh, 2025 INSC 1456 - Judicial Review - Tender Matters

Constitution of India - Article 226 - Tender - Ttender inviting authority is the best judge to understand and appreciate its requirements and interpret its documents- Ordinarily constitutional courts should defer to the understanding of the tender inviting authority of the tender documents. However, if the interpretation of the tender inviting authority or its understanding of the tender conditions is vitiated by mala fides or perversity, there is no question of a constitutional court showing deference to such understanding. Likewise, if the interpretation of the tender inviting authority of a particular condition of tender, such as, an eligibility criteria is irrational or absurd leading to arbitrary consequences, it would be the duty of a constitutional court to interdict such a decision making process. (Para 27)

Tender -The expression ‘prime contractor’ in the context of the NIT would mean the tenderer who has submitted the tender in terms of the instant NIT. If there is more than one contractor bidding together then it would mean the contractor who is primarily responsible for the contract offer. (Para 20) - The expression ‘joint venture’ connotes a legal entity in the nature of a partnership engaged in the joint undertaking of a particular transaction for mutual profit or an association of persons or companies jointly undertaking some commercial enterprise wherein all contribute assets and share risks. It requires a community of interest in the performance of the subject matter and to share both in profit and losses. (Para 21.4)