MANU/SC/0210/2004

True Court CopyTM EnglishDRJ

IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 2407-2411 of 2003

Decided On: 10.03.2004

Appellants: Directorate of Education and Ors. Vs. Respondent: Educomp Datamatics Ltd. and Ors.

Hon'ble Judges/Coram:
R.C. Lahoti and Ashok Bhan

JUDGMENT

Ashok Bhan, J.

1. The core point which calls for determination in these appeals is the extent of judicial review permissible in exercise of jurisdiction under Article 226 of the Constitution to the terms of tender prescribing eligibility criteria. Whether the High Court could change the terms incorporated in the tender notice on the ground of its being inappropriate and that the objective would be better served by adopting a different eligibility criteria?

2. Directorate of Education, Government of National Capital Territory of Delhi, appellants herein, took a decision to establish computer labs in the National Capital Territory area in all government schools by the year 2003 in collaboration with private sector. Under the scheme evolved (computer education project), the education department is to provide functional literacy to the students from class VIth to Xth and teaching of computer science and informatics practices subjects to plus two stage, as per CBSE syllabus.

3. In the first phase for the year 2000-2001, 115 schools were taken up for imparting computer education. Tenders were called from the firms having a turnover of Rs. 2 crores. As per terms of tender notice the firm was to provide hardware to establish the lab in the concerned schools. The total contract was for a sum of Rs. 14.62 crores. Since the lowest tenderer was not in a position to carry out the project in 115 schools, the contract was divided amongst four patties. In the year 2001-2002 the turn over clause was amended, instead Rs. 2 crores the turn over of Rs. 5 crores was prescribed. Because of the several representations filed the tender was cancelled and fresh tenders were invited from the firms having a turnover of Rs. 2 crores or above. The tender was for 275 schools, the total cost of the project being approximately Rs. 30 crores. The lowest tenderer was again not in a position to take up the entire project. The other seven tenderers agreed to lower their prices to bring it at par with the rate of the lowest tenderer. Thus the contract had to be distributed amongst schools each to seven parties and 28 to one party. For the final phase of 2002-2003 the tenders were called for all the 748 schools. The cost of project was approximately Rs. 100 crores. Because of the difficulty faced in the earlier years that the lowest tenderers were not able to implement the entire project, the government took a policy decision to deal with one company having financial capacity to take up such a project instead of dealing with a number of small companies which were unable to take up the entire project individually. Accordingly, Government took a decision to invite tenders from firms having a turnover of Rs. 20 crores or more for the last three financial years ending with 31.3.2002. The decision was taken to provide quality education which was the top priority of the department as it was felt that it would be easier for the department to deal with one company which is........