M/S ELECTRICAL MANUFACTURING CO.LTD. vs M/S POWER GRID CORP.OF INDIA LD.

The Supreme Court held that the refusal of Power Grid Corporation of India Ltd. (PGCIL) to award a contract to Electrical Manufacturing Company Ltd. (EMC) was arbitrary and illegal, as EMC was the lowest bidder (L1) and technically qualified under Clause 1.1 of the Special Conditions of Contract. The Court emphasized that the interpretation of technical experience requirements must be reasonable and not unduly restrictive. The judgment overturned the Delhi High Court's decision, thereby directing PGCIL to award the contract to EMC.