UNION OF INDIA vs MADDALA THATHIAH

The Supreme Court held that the stipulation in the tender allowing the administration to cancel the contract at any stage did not apply to supplies for which a formal order had already been placed. The Court clarified that once a formal order specifying the quantity and delivery dates was issued, it constituted a binding contract obligating the respondent to fulfill the order. The appeal was dismissed, affirming the lower court's decision that the cancellation was invalid for the specified supplies.