Law:

Section:

(a) Constitution of Pakistan (1973)----Art. 199---Award of contract by the State---Validity---Judicial review by High Court---Scope and extent. When the State while awarding a contract to a party had acted in an unfair or arbitrary manner or had discriminated against one of the parties who had contested for the award of contract such grievance could be looked into by superior Court in exercise of the power of judicial review under Article 199 of the Constitution, although in ordinary circumstances purely contractual obligation could not be the subject-matter of proceedings under said Article. If it is established that Government had acted arbitrarily or in an unfair manner the Court could strike down such action. The Court as a rule, shall strike a balance between competing interest and should be extremely fair to all the parties of the matter. Power vested in Government functionaries is a sacred trust and the,, should perform their duties as trustees. Where the actions/orders/decisions of State functionaries were illegal, mala fide, contrary to law, the High Court had power, in Constitutional jurisdiction to strike down such orders. Where there was no guideline for exercise of discretion, in such case also the discretionary power was not unbridled or unfettered. It should appear to have been exercised reasonably, fairly and justly without providing any cause of grievance to am person who may be interested in exercise of such discretion. The discretion should be structured in a way that it must demonstrate the following criteria with open plans. open policy statement, open rules, open findings, open reason, open proceedings and fair informal procedure. The Government act, ex facie, should be non-discriminatory and provide equal opportunity to all eligible persons. State functionaries were bound to follow the rule of fairness and neutrality, while according contract to the citizen. When transaction was not transparent and on the contrary was done by adopting notorious methods of pick and choose for promoting nepotism and favouritism, it was without lawful authority and of no legal effect. Government had the option to recover losses incurred by Government…

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