RADHAKRISHNA AGARWAL & ORS. vs STATE OF BIHAR & ORS.

The Supreme Court ruled that Article 226 of the Constitution of India cannot be invoked for breaches of contract, as the appropriate remedy lies in an ordinary civil suit for damages. The Court clarified that allegations of discrimination under Article 14 must be made at the stage of entering the contractual area to be applicable. Furthermore, the Court held that the State, while acting in its executive capacity, is bound by constitutional obligations when engaging in contractual dealings, as established in Erusian Equipment & Chemicals Ltd. v. State of West Bengal. The appeals challenging the cancellation of the lease were dismissed.