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Multitask Solutions v. Zilla Parishad Washim

Civil Appeal · 2021 INSC 409Decided 17 Aug 2021
Civil Appeal arising out of SLP (Civil) No. 13683 of 2018
Justice Hemant Gupta · Justice A.S. Bopanna

Background

The appellant won a tender to supply E-learning kits to schools under the Zilla Parishad, Washim, after a rival bidder (who had been technically disqualified) filed a public interest writ petition in the Bombay High Court challenging the process. The High Court, treating the matter as a public interest litigation, ordered recovery of all amounts already paid to the appellant and directed police complaints to be filed, based on an inquiry report comparing prices paid by other Zilla Parishads.

Decision Breakdown

The Supreme Court found that the High Court had acted on an inquiry report without properly analysing it, and had not found that the appellant failed to supply or install the kits, only that software upgradation and teacher training (held up by the High Court's own status-quo order) remained incomplete. It held that recovering the entire payment, without first determining whether the supplies matched contractual value or giving the appellant a chance to be heard, was premature and unjustified. The Court set aside the High Court's recovery and police-complaint directions, while directing the appellant to complete the pending software upgradation/training and allowing the authorities to assess, after due process, whether any proportionate deduction was warranted.

Lesson Learnt

A writ court exercising public interest jurisdiction cannot order recovery of contractual payments or direct criminal complaints against a contractor without first examining the actual facts of performance and giving the affected party a fair opportunity to respond: procedural fairness applies even in public interest proceedings.

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

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