Union of India & Anr. Vs. HBL NIFE Power Systems Ltd.
Constitution of India, 1950 - Article 14
Tender - Defence Equipment - Advertisements are issued calling for tenders only for common use items which are normally available in the open market with a wide range of sources - Submarine batteries do not fall under this category of common use items -Respondent cannot claim any vested right to be issued a development indent or RFP or a supply order simply because it has made investments to manufacture submarine batteries - Straightway RFP cannot be issued to the respondent by ignoring the procedure for issuing a development indent and testing the batteries - Development of second source could only be as per the guidelines of DGQA and under the supervision and inspection of the officials of the DGQA and not independently - High Court did not keep in view the policy of the Government in purchasing the critical spare parts for the defence and in particular, in developing submarine batteries under the aegis of the Defence Ministry - High Court erred in directing the appellants to issue an advertisement giving details about the technical specifications for submarine batteries and in selecting the product submitted in response to the advertisement -Impugned order not sustainable and liable to be set aside.
Topic(s)-Tender - Defence Equipment - No advertisement required