Latest Cases

  IMPORTANT POINTS
(1) Cancellation of Tender – Sanctity of contracts is a fundamental principle that underpins stability and predictability of legal and commercial relationships – When public authorities enter into contracts, they create legitimate expectations that State will honour its obligations – Once a contract is entered, there is legitimate expectation, that obligations arising from contract will be honoured and that rights arising from it will not be arbitrarily divested except for a breach or non-compliance of terms agreed thereunder.
(2) Cancellation of Contract – If State deems it necessary to alter or cancel a contract on the ground of public interest or change in policy then such considerations must be bona-fide and should be earnestly reflected in decision-making process and also in final decision itself – Otherwise, it would have a very chilling effect as participating and winning a tender would tend to be viewed as a situation worse than losing one at threshold.
(2) Cancellation of Contract – Considerations of public interest should not be narrowly confined to financial aspects – Courts must have a more holistic understanding of public interest wherever fairness of public authorities is in question, giving due regard to broader implications of such action on stability of contractual obligations – Merely because financial terms of a contract are less favourable over a period of time does not justify its termination.
(4) Judicial Review – Once a decision is made, all opinions and deliberations pertaining to said decision in internal file-notings become a part of process by which decision is arrived at, and can be looked into for the purposes of judicial review – Any internal discussions or notings that have been approved and formalized into a decision by an authority can be examined to ascertain reasons and purposes behind such decisions for overall judicial review of such decision-making process and whether it conforms to principles enshrined in Article 14 of Constitution. ,09 Jul 2024

Supreme Court of India

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22-03-2021 17:39:52
 
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