M/S. PRODUCE EXCHANGE CORPN. LTD. vs COMMISSIONER OF EXCISE, ASSAM & ORS.

The Supreme Court upheld the Government's decision to accept the tender of the 5th respondent for supplying country spirit, stating that the Government had the authority under Section 19 of the Eastern Bengal and Assam Excise Act, 1910, to negotiate with tenderers. The Court clarified that the Government's request for reduced rates indicated the tenders were deemed unsatisfactory, and Rule 93 did not prohibit negotiations. The Court emphasized that no party has a fundamental right to a Government contract, and the Government's preference for one tenderer over another was justified as long as it was based on rational grounds.