State Of Assam & Anr vs M/S. Abhinandan Trading (P) Ltd. & Anr

The Supreme Court held that the grant of contract for supplying potable alcohol under the Assam Excise Rules, 1945 was invalid as it did not comply with Clause 28 of the Notice Inviting Tender (NIT), which required a logical and reasonable basis for determining the viable rate. The Court emphasized that the Commissioner of Excise's failure to adhere to the stipulated criteria rendered the contract award arbitrary. Consequently, the Court upheld the decision of the learned Single Judge, directing the State Government to reassess the tenders in accordance with the law.