All India Bar Examination (AIBE) 5-V Previous Year Question Papers with Answers

The correct option is D. Food Corporation of India Vs. M/s. Kamdhenu Cattle Feed Industries.

This is a case decided by the Supreme Court of India in 1992, in which the doctrine of legitimate expectation was discussed and applied. The court held that the appellant, Food Corporation of India, did not act arbitrarily or violate Article 14 of the Constitution by rejecting the highest tender submitted by the respondent and inviting all the tenderers to participate in negotiations for a higher offer. The court observed that retaining the option to accept the highest tender, in case the negotiations do not yield a significantly higher offer, would be fair to the tenderers besides protecting the public interest. The court also observed that the doctrine of legitimate expectation forms part of non-arbitrariness and rule of law, and is subject to judicial review in the larger public interest.