SC: Courts should not interfere in complex Auctions unless it smacks of obnoxious arbitrariness, Read Order

January,15,2017:

Once the stipulation in the tender are reasonable and not based on any extraneous considerations, the Courts cannot interfere as if they are an Appellate authority, SC.

These observations were made by the Apex Court while dismissing of a bunch of Transfer Petitions  filed by Reliance Telecom Ltd.

The cases pertained to Petitions under Article 226 of the Constitution challenging the terms and conditions of Notice Inviting Application-2015  for allocation of spectrums in various areas.

Bench of Justices Dipak Misra and Prafulla C Pant ruled that in the matters relating to complex auction procedure like allocation of spectrums having enormous financial ramification, any casual interference by the Courts may have an unforeseen adverse impact.

More so when it is based on any perception which is thought to be wise or assumed to be fair. It can lead to a situation which is not warrantable.

Such intreferences may have the effect potentiality of creating a situation of grave fiscal imbalance.

In our view, any interference in such like high value auction should be only on the ground of stricter scrutiny when the decision making process commencing from NIA till the end smacks of ny extraneous consideration or obnoxious arbitrariness which is perceivable.

Bench found that the directions given by the Apex Court in the 2G case had been thoroughly complied with and the auctions have been duly held thereafter from year to year.

Court found that Govt's decision of not putting the entire spectrum to auction is a reasonable one and hence Courts cannot interfere with the tender conditions merely on the ground that certain amount of spectrum has not been put to auction.

The Court cannot interfere in the NIA in exercise of the power of judicial review unless something palpably serious flaw in the process is found.

SC Judgement that Courts Should Not Interfere in Complex Auctions Unless It Smacks of Obnoxious Arbitrarine... by latest laws team on Scribd