Supreme Court Quashes Arbitrary Contract Cancellation in Kolkata

The Supreme Court has overturned a West Bengal decision to cancel a contract for maintaining two underpasses in Kolkata. The court termed the cancellation an arbitrary exercise of power influenced by a state minister. The decision underscores the importance of transparency and fairness in public tenders.

In a significant ruling, the Supreme Court has quashed a decision by West Bengal authorities to cancel a contract for the maintenance of two underpasses in Kolkata, describing it as a 'classic textbook case of an arbitrary and capricious exercise' of power.

The court highlighted that the cancellation was influenced by a West Bengal minister and criticized the state for not providing any reasons for the decision. The judgment emphasized the importance of public tenders in ensuring transparency, competition, and fairness in governmental procurement processes.

The Supreme Court's ruling overturned a May 25, 2023, decision by the Calcutta High Court which had upheld the contract cancellation. The verdict is a reminder that the state, as a trustee of public resources, has a duty to avoid favoritism and discrimination in the allocation of public resources.

(With inputs from agencies.)