State Of Rajasthan & Anr vs M/S Deep Jyoti Company & Anr

The Supreme Court upheld the High Court's decision to quash the circular dated 06.10.2008 issued by the Mines Department of Rajasthan, which mandated the deduction of royalty from contractors' bills. The Court found that the circular imposed unreasonable conditions on contractors, violating principles of fairness and transparency in government contracts. The Court emphasized that such deductions should not be arbitrary and must adhere to established legal standards, thereby affirming the High Court's ruling in Special Appeal No.369 of 2009.