In a pivotal ruling, the Supreme Court has issued a stern caution to public authorities against whimsical cancellation of public tenders, emphasizing the critical role of contract sanctity in fostering stable public-private partnerships.
Highlighting the Doctrine of Public Trust underlying tender processes, the Court underscored that arbitrary cancellations undermine trust and deter private sector participation. Such actions, it warned, jeopardize the integrity of procurement systems, potentially harming public interests.
The verdict stresses that state decisions to cancel tenders must be justified by genuine, documented reasons, rooted in public interest rather than extraneous factors. Failure to uphold these standards, the Court affirmed, invites judicial scrutiny to safeguard fairness and prevent misuse of executive powers.
This landmark decision marks a shift, affirming judicial oversight over state contracting decisions when public interest is at stake, setting a precedent for accountability and transparency in governance.
