Government Contract and Tender – Government contracts involve expenditure out of the public exchequer – Since they involve payment out of the public exchequer, the moneys expended must not be spent arbitrarily – State does not have absolute discretion while spending public money – All government actions including government contracts awarded by the State must be tested on the touchstone of Article 14
SUPREME COURT OF INDIA DIVISION BENCH M/S INDIAN MEDICINES PHARMACEUTICALS CORPORATION LIMITED — Appellant Vs. KERALA AYURVEDIC CO OPERATIVE SOCIETY LIMITED AND OTHERS — Respondent ( Before : Dr. Dhananjaya…