Union Of India & Ors vs Dinesh Engineering Corpn. & Anr

The Supreme Court upheld the High Court's decision to quash the Railway's rejection of M/s. Dinesh Engineering Corporation's tender for supplying spare parts for GE governors, citing Article 14 of the Constitution which mandates non-arbitrariness in state action. The Court found that the Railway's policy created a monopoly in favor of another supplier, which was arbitrary and discriminatory. The Court affirmed that the writ petitioner was a competent supplier and that the rejection of its tender was unjustified.