STAR ENTERPRISES ETC. ETC. vs CITY AND INDUSTRIAL DEVELOPMENT CORPORATIONOF MAHARASHTRA L

The Supreme Court held that the rejection of the highest offers by a public authority does not constitute arbitrariness if there are no allegations of mala fides, as the authority is entitled to seek better offers in its economic interest. The Court emphasized that reasons for rejecting such offers should be communicated to the concerned parties to ensure accountability and transparency, as per the principles established in Article 14 of the Constitution. The appeal was dismissed, affirming the High Court's decision that there was no violation of the rule of law.