Smart Card Driving License Project: Supreme Court Orders Fresh Review of Contract Award

The Supreme Court of India, in the case of Score Information Technologies Ltd. vs. Sriyash Technologies Ltd. & Others, addressed a dispute concerning the awarding of a contract for Smart Card-based driving licenses and vehicle registration certificates in Uttarakhand. The ruling, delivered by Justices Kurian Joseph and Rohinton Fali Nariman, set aside the existing contractual arrangement and directed a fresh evaluation of the project.

Background of the Case

The dispute arose when Sriyash Technologies Ltd. challenged the award of a government contract for implementing Smart Card-based driving licenses and vehicle registration certificates in Uttarakhand. The contract was initially awarded to HILTRON, a Public Sector Undertaking, which later subcontracted the project to Score Information Technologies Ltd.

The challenge was based on the argument that the contract award lacked transparency and violated Article 14 of the Constitution. The High Court’s Division Bench ruled against the government’s arrangement with HILTRON, declaring the process invalid due to the absence of competitive bidding.

Key Legal Issues

• Was the contract awarded in a fair and transparent manner?
• Did the government have the discretion to award the contract without an open bidding process?
• Should the project be reconsidered in the interest of public transparency?

Arguments of the Parties

Petitioner’s Arguments (Score Information Technologies Ltd.)

The appellant contended that the contract was legally valid and had been executed under a Memorandum of Understanding (MOU) with HILTRON. They argued that the High Court overstepped its jurisdiction by interfering in an administrative matter.

Respondent’s Arguments (Sriyash Technologies Ltd. & Others)

The respondents asserted that the government’s decision to award the contract to HILTRON, without inviting tenders, violated procurement norms and lacked transparency. They argued that the entire process should be re-evaluated through a competitive bidding mechanism.

Supreme Court’s Observations

Justice Kurian Joseph, delivering the judgment, stated:

“Unless the intention to enter into such a contract is made public, there cannot be any transparency in the entering into that contract. The process of finalizing the contract being shrouded with thick blackness, the whole thing is bad.”

The Court upheld the High Court’s concerns regarding lack of transparency but directed the State to reassess the project execution.

Final Verdict

The Supreme Court disposed of the appeal with the following directions:

• The contract arrangement between the Transport Commissioner and HILTRON was set aside.
• The Uttarakhand government was directed to re-evaluate the Smart Card project and ensure a transparent selection process.
• The appellant was permitted to seek remedies against HILTRON for any contractual disputes.

The appeal was disposed of with no order as to costs.

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Download Judgment: Score Information Te vs Sriyash Technologies Supreme Court of India Judgment Dated 03-03-2016-1741853900187.pdf