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M/s B.K. Enterprises v. The State of Manipur

Civil Appeal · 2021 INSC 720Decided 12 Nov 2021
Civil Appeal No. 6532 of 2021
Justice M.R. Shah · Justice A.S. Bopanna

Background

Since 2017, the Manipur government had been transporting rice and other micronutrients under a food-support scheme through a stopgap, interim tender-less arrangement rather than running a proper tender process, after an earlier tender award was challenged in court. A disappointed bidder, M/s B.K. Enterprises, appealed to the Supreme Court after the High Court disposed of its writ appeal with only limited directions, which the State also failed to implement for years.

Decision Breakdown

The Supreme Court strongly criticised the State Government and its Social Welfare Department for years of "lethargy" in not conducting a fresh, fair tender process and for continuing an interim arrangement at outdated 2017-18 rates, which it found had caused significant loss to the public exchequer. It rejected the State's vague apology for non-compliance with the High Court's earlier order. The Court disposed of the appeal by directing the State to issue a fresh, nationwide e-tender within 10 days, conducted fairly and transparently, to be completed within six weeks, while the existing interim transport arrangement was allowed to continue only until 31 December 2021, with a compliance report to be filed before the Court.

Lesson Learnt

Government departments cannot indefinitely bypass competitive tendering by relying on "temporary" arrangements: courts can step in to impose firm, enforceable timelines once such delay starts costing the public exchequer.

Official source (sci.gov.in)View Judgment (PDF)

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