CHAITANYA KUMAR vs STATE OF KARNATAKA & ORS.

The Supreme Court held that the selection process for awarding bottling contracts under the Karnataka Excise Act, 1965, specifically Section 13(1)(e), was arbitrary and capricious, violating Article 14 of the Constitution. The Court emphasized that the licensing rules must be adhered to and that the amendment to Rule 3(2) allowing unconnected persons to apply for licenses was made without proper justification. Consequently, the Court quashed the government's order awarding the contracts and directed a fair selection process in compliance with the law.