NAND KISHORE SARAF vs STATE OF RAJASTHAN AND ANOTHER

The Supreme Court held that under Rule 36(7) of the Rajasthan Minor Mineral Concession Rules, 1959, the appellant's failure to deposit 25% of the bid amount as security resulted in the loss of any claim to the contract. The Court clarified that the Government is not obligated to accept the highest bid and has discretion under Rule 59 to prefer a cooperative society over the highest bidder, which was justified in this case. The appeal was dismissed as the Government's decision was not arbitrary and the contract was nearing its end.