Courts must realise their limitations, go by expert opinion on technical issues: Kerala High Court

The Kerala High Court recently observed that when it comes to adjudicating disputes over contracts involving technical issues, courts must understand their limitations and give way to the opinion of experts [Anish Markose v. State of Kerala]..Single judge Justice N Nagaresh issued the order on a plea challenging the award of a contract for laying two public roads.In such matters, the Court held that it is necessary to keep in mind the Court's limitations when it comes to technical issues and give more weight to the opinion of experts."The courts must realise their limitations and the havoc which needless interference in commercial matters can cause. In contracts involving technical issues, the courts should be even more reluctant because most Judges do not have the necessary expertise to adjudicate upon technical issues beyond their domain. The courts should give way to the opinion of experts unless the decision is totally arbitrary or unreasonable," the court said..It went on to say that the Court's role should be limited to preventing any illegality, arbitrariness or malafides instead of micro-managing the small details in tender contracts. "The courts should not use a magnifying glass to scan tenders and make every small mistakes appear like a big blunder. The courts must give “fair play in the joints” to Government and Public Sector Undertakings in matters of contract. The authority which floats the contracts or tender and has authored the tender documents is the best Judge as to how the document have to be interpreted. The courts will only interfere to prevent arbitrariness, irrationality, bias, malafides or perversity," the order stated..The order came on a petition filed by a contractor challenging the awarding of the contract to construct two roads under the Kerala State Transport Project to another contractor.The petitioner had contended that the other contractor did not have the necessary expertise. However, the Court noted that bids and the technical qualifications of the bidders have undergone a three stage scrutiny by M/s.Louis Berger who are the technical experts appointed by the German Bank, Kerala State Transport Project and the German Bank .The Court adverted to the decision of the Supreme Court in Silppi Constructions Contractors v. Union of India and Anr. in which it was held that that courts should exercise a lot of restraints while exercising their powers of judicial review in contractual or commercial matters. .The Court opined that "when the authority which tendered the work and the technical experts well-versed in the field have found that the 6th respondent (other contractor) satisfies the requisite experience, it would be inappropriate for this Court to come to a conclusion to the contrary, unless of course, there are compelling circumstances.".The Court therefore, declined to interfere and dismissed the petition..[Read Judgment]