High Court Overturns BSNL Purchase Order Withdrawal

The Delhi High Court has annulled BSNL's decision to withdraw a significant contract with Millennium Automation Private Limited, citing lack of evidence for allegations of collusion. The court emphasized the need for substantial proof to sustain such serious accusations, thereby restoring the original agreement.

The Delhi High Court has reversed Bharat Sanchar Nigam Limited's (BSNL) decision to cancel a purchase order with Millennium Automation Private Limited. The contract, worth several crores, involved the provision of central billing and internet protocol data recovery solutions.

BSNL had rescinded the contract citing alleged collusion, but Justice Sanjeev Narula ruled that such serious allegations require concrete evidence. He stated that BSNL, as a state entity, must act fairly and not arbitrarily in its decisions.

The court concluded that the rationale provided for canceling the contract was unfounded, and thus the purchase order was reinstated. The petitioner had already incurred substantial costs, emphasizing the urgency of restoring the agreement.