Bombay High Court

Bombay HC: UPLA Must Pay TCS for Wrongful Contract Termination

Updated
Dec 21, 2025 10:58 AM
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Summary: The Bombay High Court dismissed a request by the Uttar Pradesh Legislative Assembly Secretariat to challenge a decision that favored Tata Consultancy Services (TCS). The court agreed with the original decision, which said that ending a contract with TCS was wrong and that TCS should be paid money for it.

The Dispute Begins

In 2015, the Uttar Pradesh Legislative Assembly Secretariat (UPLA) made a deal with Tata Consultancy Services (TCS) to hold exams for hiring Review Officers. The deal was canceled by UPLA in June 2016 because of supposed issues in another exam TCS did for the Railway Recruitment Board.

Arbitration and Award

TCS argued against the cancellation and used the contract's rules to start a formal dispute in 2018. The decision-maker sided with TCS on November 24, 2023, saying the cancellation was wrong and told UPLA to pay TCS ₹5,37,37,154 with extra money for interest and expenses.

"The termination of the agreement was illegal," stated the arbitrator.

UPLA's Legal Challenge

UPLA went to court under a specific law, arguing three main points: 1. The deal was with UPLA, not the State of Uttar Pradesh. 2. The deal was not valid because it couldn't be completed. 3. TCS should only get money for what they spent, not the full amount of the deal.

Court's Decision

The court, led by Judge Sandeep V. Marne, rejected UPLA's request on November 25, 2025, agreeing with the original decision:

  • On Impleadment: The court found it was correct to consider UPLA as part of the State of Uttar Pradesh in this case.
  • On Contract Frustration: The court said the deal was not impossible to complete since TCS had done their part.
  • On Compensation: The court agreed that TCS should get the full amount of money from the deal.

"The award does not suffer from the vice of being in conflict with public policy," the court noted.

Verdict Summary

The court's decision confirmed that TCS was right, emphasizing that TCS finished their part of the deal and that UPLA ended the deal wrongly. The ruling shows how important it is to complete what you agreed to in a contract and to follow the results of formal disputes.

This case shows how tricky government contracts can be and the legal ways to solve problems when they happen.