| Case ID |
1790efab-0421-4c5c-ab4f-6fd6ae08b31f |
| Body |
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| Case Number |
C.M. No.7151 of 2013 in Suit No.754 of 2013 |
| Decision Date |
Apr 10, 2014 |
| Hearing Date |
Nov 07, 2013 |
| Decision |
The Sindh High Court granted an interim injunction in favor of the plaintiff, Crescent Steel and Allied Product Ltd., ruling that the defendant, Sui Southern Gas Co. Limited, unlawfully revoked the plaintiff's bid for coating pipes after the plaintiff was the lowest bidder in the tender process. The court emphasized that public sector entities must provide a lawful reason for their actions, and since the defendant failed to exercise its right to designate a delivery point for the pipes, the plaintiff was entitled to relief. The court found that the balance of convenience favored the plaintiff, who would suffer irreparable loss if the contract was awarded to another party. The decision confirmed that the interim order dated 10-06-2013 was to be upheld. |
| Summary |
This case revolves around the legal principles of public procurement and the obligations of public sector entities regarding tender processes. Crescent Steel and Allied Product Ltd. challenged the actions of Sui Southern Gas Co. Limited after being the lowest bidder for a coating contract on pipes. The High Court ruled that Sui Southern Gas Co. failed to provide justifiable reasons for revoking the contract, emphasizing the necessity for public entities to act within the law and provide valid reasons for their decisions. The plaintiff demonstrated a strong prima facie case, and the court found that the balance of convenience lay in favor of the plaintiff, who faced significant financial and operational difficulties due to the defendant's inaction. The ruling reinforces the importance of transparency and accountability in public procurement and ensures that entities cannot arbitrarily cancel tenders without legal justification. Keywords: public procurement, tender process, interim injunction, legal accountability, Sui Southern Gas Co., Crescent Steel. |
| Court |
Sindh High Court
|
| Entities Involved |
Crescent Steel and Allied Product Ltd.,
Sui Southern Gas Co. Limited
|
| Judges |
MUNIB AKHTAR, J
|
| Lawyers |
Ch. Atif Rafiq,
Asim Iqbal
|
| Petitioners |
CRESCENT STEEL AND ALLIED PRODUCT LTD.
|
| Respondents |
SUI SOUTHERN GAS CO. LIMITED
|
| Citations |
2015 SLD 1413,
2015 CLC 478
|
| Other Citations |
Not available
|
| Laws Involved |
Public Procurement Rules, 2004,
Civil Procedure Code (V of 1908),
Specific Relief Act (I of 1877)
|
| Sections |
R. 26,
O.XXXIX, Rr.1 & 2,
Ss.42 & 54
|