Excelsior Correspondent
Srinagar, Mar 15: High Court today said that the Government in contract matters must be left free as the court does not have expertise to correct the administrative decision and if that be permitted, it would amount to substitute its own decision without the necessary expertise.
Justice Ali Mohammad Magrey dismissed the plea of a contractor challenging the cancellation of allotment of contract to him. On the appreciation law governing the field, the court said, in the matters of contract, the Government must be left free.
“Furthermore, fair play in the joints is a necessary concomitant for an administrative body functioning in an administrative sphere or quasi administrative sphere and quashing administrative decision may impose heavy administrative burden on the administration and lead to increased and unbudgeted expenditure”, Justice Magrey said.
“It is, thus, settled that public authorities must be left with the same liberty as they have in framing the policies, even while entering into contracts because many contracts amount to implementation or projection of policies of the Government. But, it cannot be overlooked that unlike policies, contracts are legally binding commitments and they commit the authority which may be held to be a State within the meaning of Article 12 of the Constitution of India in many cases for years”, reads the judgment.
Justice Magrey added that for this reason the Courts have impressed that even in contractual matters the public authority should not have unfettered discretion and in contracts having commercial element, some more discretion has to be conceded to the authorities so that they may enter into contracts with persons keeping an eye on the augmentation of the revenue. But, even in such matters, they have to follow the norms recognized by Courts while dealing with public property.
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