Rajasthan State Warehousing Corporation

Versus

Star Agriwarehousing and Collateral Management Limited

Civil Appeal Nos. 2651-2656 of 2020, Arising out of SLP (civil) nos. 7746-7751 of 2020

Provisions Involved

Article 136 of the Constitution of India

Facts

Certain writ petitions were filed before the HC of Rajasthan in respect of clause 5(5)(1) of the notice for tender of warehouses at 71 locations, which was dismissed by a single bench of HC on 19thMay,2020. After this on 20thMay, 2020 after the technical bid appellants were selected as successful bidders in SLP NO.S 7834-7839 OF 2020 and SLP NO.S 7935-7936 of 2020 and HC gave an Interim Order to restrain the successful bidders from executing the contract as it is not in Public Interest and the same was retained on 10/06/2020 against which this suit has been filed. 


Issues

Whether the grant of Interim Order to restrain the successful bidders from executing the contract is in Public Interest?

Observations

Nitco Tiles Ltd v. Gujarat Ceramic Floor Tiles Mfg. Assn., (2005) 12 SCC 454

It was held that the court normally does not interfere with any of the interim orders taken by High courts but having regard to lack of any acceptable reason in the impugned order, the court has no hesitation in interfering.


Raunaq International Ltd v. I.V.R. Construction Ltd & Ors, (1991) 1 SCC 492

It was held that before entertaining any writ petitions and passing any interim order, the court may weigh conflicting public interest very carefully and only if it is found to be in some public interest then the decision must be given.


Held

The grant of Interim Order especially when the tender is for storage of food articles in the warehouses of the State Government, is against the Public Interest and hence the order given by H.C. is set aside.