In Brief
The Supreme Court upheld a tender awarded to the appellant for maintaining two underpasses on the Eastern Metropolitan Bypass in Kolkata on a public-private partnership basis. The authority (KMDA) cancelled the tender, claiming technical faults and a change in policy after maintenance duties were handed to another agency (KMC). The Court held that although contractual disputes are generally not amenable to writ jurisdiction, here the State's executive action to cancel the tender involved a public law element and could be reviewed for arbitrariness. Examining internal file notings, the Court found the cancellation was arbitrary and directed by the concerned Minister without genuine justification, as the authority retained advertisement revenue rights and the tender was financially beneficial. The Court quashed the cancellation and set aside the High Court's judgment, emphasizing the sanctity of public tenders and the State's duty to act fairly in contractual matters.
The lawyer headnote and full judgment text are available to registered users.