Supreme Court Cautions Authories Against Arbitrary Cancellation Of Public Tenders; Says It Can Impact Private-Public Partnerships

The Supreme Court of India cautioned against the arbitrary cancellation of public tenders, emphasizing that such actions undermine the sanctity of contracts and discourage private participation in public projects. Arbitrary cancellations can erode trust in public procurement processes, affecting public-private partnerships. The Court highlighted the importance of valid reasons for cancelling tenders and asserted that the State’s decisions are subject to judicial review if found arbitrary. This judgment stemmed from a case where a tender was cancelled without proper reasons, deemed an arbitrary exercise of power by the State.