Courts Must Exercise Restraint While Deciding Technical Contractual Matters: Apex Court
New Delhi (BW): The Supreme Court of India has held that while dealing with contracts involving intricate and technical matters, the Court should exercise restraint in using its judicial review authority.
The Bench of Chief Justice of India DY Chandrachud, Justice J B Pardiwala and Justice Manoj Misra went observed that even if one of the contract parties qualifies as a ‘State’ according to Article 12 of the Constitution and falls under the jurisdiction of High Court or Supreme Court, the Court should be cautious about intervening in commercial or contractual issues.
In a specific case involving Bharat Heavy Electricals Limited (BHEL) and others, the Court ruled that it was the responsibility of the tendering authority to interpret the terms of the tender documents, and the Court should only examine issues of arbitrariness or mala fides rather than acting as an appellate authority.
The Supreme Court quashed the order of the division bench and upheld the order passed by the single judge bench.