Here's the scoop on a recent court battle between the State of Uttar Pradesh and Tata Consultancy Services (TCS) over a recruitment exam contract. Let's break it down!
Back in December 2015, the Uttar Pradesh Legislative Assembly (UPLA) teamed up with TCS to conduct online exams for hiring Review Officers and Assistant Review Officers. Everything seemed fine until June 2016, when UPLA ended the agreement, citing problems in a different exam conducted by TCS.
"The termination was deemed wrong and illegal," said the Arbitrator.
TCS wasn't having it. They pushed back, challenging the termination and demanding payment for their services. Fast forward to November 2019, and a sole Arbitrator was appointed to sort things out.
On November 25, 2025, Justice Sandeep V. Marne ruled in favor of TCS. He declared that UPLA's termination of the contract was illegal and ordered them to pay TCS over ₹5.37 crore plus interest.
Uttar Pradesh's Stand: They argued that the contract was impossible to fulfill since the exam results couldn’t be processed. They also claimed that UPLA is a separate entity from the State Government.
TCS's Defense: TCS maintained that they completed their part of the job and that the cancellation was a choice made by UPLA, not due to any failure on TCS's part.
Frustration of Contract: Uttar Pradesh claimed the contract was impossible to fulfill. The court disagreed, saying the cancellation was self-induced by UPLA.
Entity Confusion: Uttar Pradesh tried to argue that the contract was with UPLA, not the State. The court ruled they were not separate for this purpose.
Justice Marne dismissed Uttar Pradesh's petition, reinforcing that TCS should be paid for their work. The court emphasized that the cancellation was a choice by UPLA, not a failure of TCS.
This case highlights the complexities of government contracts and the importance of clear legal agreements.
