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We must strictly adhere to the terms of a contract

The Supreme Court in Central Coalfields Limited & Anr vs. SLL – SML (Joint Venture Consortium) & Ors. has held that, decision taken by the employer about essentiality of a term of the Notice Inviting Tender should be respected and lawfulness of that can be questioned on very limited grounds.

The Bench comprising of Justices Madan B. Lokur and R.K. Agrawal set aside a Judgment by Jharkhand High Court wherein it had set aside the rejection of the bid of SLL-SML by Central Coalfields Limited. In this case, the bid given by JVC was cancelled as the bank guarantee submitted was not in the format given in the NIT read with the GTC.

The Court also, referring to principle enunciated in Nazir Ahmad v. King Emperor, observed: “There is a wholesome principle that the Courts have been following for a very long time and which was articulated in Nazir Ahmad v. King Emperor namely “Where a power is given to do a certain thing in a certain way the thing must be done in that way or not at all. Other methods of performance are necessarily forbidden.”

Read more at: http://www.livelaw.in/essentiality-term-notice-inviting-tender-decided-employer-sc/

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