Supreme Court Upholds Himachal's Right to Cancel ePoS Tender

The Supreme Court has upheld the Himachal Pradesh government's decision to cancel a tender awarded to OASYS Cybernetics Pvt. Ltd. for supplying electronic Point-of-Sale devices. The court found the cancellation lawful, allowing the state to issue a new tender for upgrading its Public Distribution System.

The Supreme Court has endorsed the Himachal Pradesh government's authority to revoke a tender initially granted to a private firm, OASYS Cybernetics Pvt. Ltd., for the supply of upgraded electronic Point-of-Sale (ePoS) devices. This judgment comes after the Himachal Pradesh High Court had earlier reinstated the Letter of Intent (LoI) favoring the Chennai-based company.

In his inaugural judgment as Chief Justice of India, Justice Surya Kant ruled that the state was justified in its decision to annul the LoI issued on September 2, 2022. The court's 40-page verdict determined the LoI did not constitute a binding contract and its cancellation on June 06, 2023, was a legitimate administrative action.

The state is now free to issue a new tender to supply, install, and maintain ePoS devices in Fair Price Shops, complying with legal and technical standards. All eligible firms, including OASYS, can participate in this upcoming tender process. The case arises from Himachal Pradesh's efforts to modernize its Public Distribution System with advanced ePoS capabilities.

(With inputs from agencies.)