Supreme Court has cautioned that in commercial matters, judicial interference is warranted only when an administrative action of the Government is illegal, irrational or the process through which such action is taken is beyond procedural propriety. A court of law ought to limit itself in only assessing infirmities in “decisions making process” on touchstone of reasonableness and rationality and should ensure that it is not arbitrary or violative of Article 14 of Constitution of India. Decision making process of employer or owner of project in accepting or rejecting bid of a tenderer should not be interfered with in absence of any malafides or such arbitrariness which would be apparent on face of it.
B.L.S International Services Ltd. vs. Ministry of External Affairs, Govt. of India