Caterpillar India Pvt. Ltd vs Western Coal Fields Ltd. and Ors

The Supreme Court addressed the legality of the purchase preference policy for Public Sector Enterprises (PSEs) as outlined in various office memoranda, particularly challenging the substitution of 'may' with 'will' in the policy language. The Court held that this change was arbitrary and could potentially create a monopoly, thus affecting the legitimate expectations of private tenderers. The Court ruled that the policy must ensure a level playing field for all bidders and emphasized the need for transparency and fairness in public procurement processes.