STATE OF ASSAM vs M/S. ABHINANDAN TRADING (P) LTD.

The Supreme Court addressed the validity of the tender process under Rule 91 of the Assam Excise Rules, 1945, emphasizing that the award of the contract must be based on a logical and reasonable basis as mandated by Clause 28 of the Notice Inviting Tender. The Court upheld the decision of the learned Single Judge, which set aside the grant of contract to M/s. Rangpur Trading Company (P) Ltd. due to the lack of a rational basis for the award, thereby directing the State Government to reconsider the tenders in accordance with the law. The judgment reinforces the principle that administrative decisions must adhere to standards of reasonableness and transparency.