The Supreme Court has reiterated that passing any interim orders in writ petitions involving contractual matters, the courts must carefully weigh conflicting public interests.
In a writ petition filed in a matter relating to tender of warehouses, the Rajasthan High Court passed an interim order of status quo with a further direction that other formalities may proceed but the contract shall not be signed with the leave of the Court. The single bench had dismissed the writ petition and the above interim order was passed by the Division Bench in intra court Appeal. Assailing this interim order, the state warehousing corporation approached the Apex Court.
The bench comprising Justices Hemant Gupta and Aniruddha Bose took note of the following observations made in Raunaq International Ltd. v. I.V.R. Construction Ltd. & Ors (2005) 12 SCC 454 :
The bench observed that the grant of interim order impinges upon the grant of contract by the state and is not in public interest that too without recording any reasons. While allowing the appeal, the bench said:
In the matters of contract, the grant of interim order to restrain the successful bidders from executing the contract is not in public interest, more so, when the tender is for storage of food articles in the warehouses of the State Government undertaking.
Case no.: CIVIL APPEAL NOS. 2651-2656 OF 2020Case name: RAJASTHAN STATE WAREHOUSING CORPORATION vs. STAR AGRIWAREHOUSING AND COLLATERAL MANAGEMENT LIMITEDCoram: Justices Hemant Gupta and Aniruddha BoseCounsel: Senior Advocates Kapil Sibal,Akhil Sibal,R.K. Mathur, Mr. Gourab Banerji and Shyam Divan,
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