FOOD CORPN. OF INDIA vs KAMDHENU CATTLE FEED INDUSTRIES

The Supreme Court held that the action of the appellant-Corporation in rejecting the highest tender and inviting negotiations for a higher offer violated Article 14 of the Constitution, which mandates non-arbitrariness in State actions. The Court emphasized that public authorities must act fairly and consider legitimate expectations of tenderers, and that failure to do so could render decisions arbitrary. The High Court's ruling was upheld, affirming that the appellant's discretion was not unfettered and must align with principles of fairness and public good.