M/S Electrical Manufacturing Co.Ltd vs M/S Power Grid Corp.Of India Ld.& Anr

The Supreme Court held that the refusal of the Power Grid Corporation of India Ltd. (PGCIL) to award a contract to Electrical Manufacturing Company Ltd. (EMC) was arbitrary and illegal under the principles of contract law. The Court found that EMC met the technical experience requirements as stipulated in Clause 1.1 of the Special Conditions of Contract, which necessitated the completion of specific transmission line projects. Consequently, the Court quashed the decision of PGCIL and directed the award of the contract to EMC.