IMPORTANT POINT
Judicial review under Article 226 is not appropriate for resolving contractual disputes, which should be addressed in civil courts.

ORDER :

1. This Writ Petition is filed under Article 226 of the Constitution of India:

“to issue a Writ or Order or Direction more particularly one in the nature of Writ of Mandamus:

(i) declaring the action of the 2nd Respondent (vide email dated 07.02.2024) in cancelling the PO dated 13.12.2022 bearing PO Ref No. 2168.02/2022-Q3/212/2313 and PO dated 07.06. 2023 bearing PO Ref No 2168.03/2023 to the conditions of tender in Tender Document No. 123-8/APMSIDC/MEDICINE WlNG/2022-23 and consequently set aside the same:

(ii) declaring the action of the 2nd Respondent in issuing POs dated 06.02.2024 bearing PO Ref Nos. 2168.02/2023-Q4/212/425(10282400786) and Nos. 2168. 03/2023-Q4/212/426 (10282400787) to the 3rd Respondent at an additional cost of Rs.2,66,80,953/- as illegal, arbitrary, discriminatory and contrary to the conditions of the tender in Tender Document No. 123-8/APMSIDC/MEDlCINE WING/2022-23 and consequently set aside the POs dated 06.02.2024 bearing PO Ref Nos. 2168. 02/2023-Q4/212/425 (10282400786) and Nos. 2168.03/2023-Q4/212/426 (10282400787) issued to the 3rd Respondent.

(iii) direct the 2nd Respondent to revive the POs dated 13.12.2022 bearing PO Ref No. 2168.02/2022-Q3/212/2313 and PO dated 07.06.2023 bearing PO Ref No 2168. 03/2023-Q1/212/642 issued to the Petitioner and pass such other and further orders.”

2. Heard Mr. S. Vivekchandrasekhar, learned counsel for the petitioner and learned Advocate General for the 1st respondent; Mr. Ch. Venkata Reddy, learned counsel for the 2nd respondent and Anup Koushik Karavadi, learned counsel for the 3rd respondent.

3. It is the case of the petitioner is that the petitioner is a company after obtaining necessary license from the licensing authorities engaged in the business of manufacturing drugs. The 2nd respondent called for tenders vide Tender Document No. 123-8/APMSIDC/ MEDICINE WING/2022-23, for the supply of medicines to the 2nd respondent. The petitioner being the eligible to participate in the bid process as contemplated under Clause 2 of the bid document submitted its technical bid and price bid and was thereafter determined as L1 by virtue of quoting the lowest evaluated price. The 3rd respondent was declared as L2. As per tender document, once a tenderer is declared as L1, Pos will be issued to the tenderer under acknowledgement with certain terms and conditions and as the petitioner declared as L1, the petitioner and the 2nd respondent entered into an Agreement dated 02.11.2022 and thereafter the 2nd respondent has been issuing Pos on the petitioner from time to time and pursuant to the Pos, the petitioner has been supplying drugs to the 2nd respondent. While the matter stood thus, against the Pos issued by the 2nd respondent, has been diligently making the supplies as provided under the terms and conditions of the tender document and also the agreement, the 2nd respondent repeatedly delayed the payments due to the petitioner for supplies so made by the petitioner. As on date, in relation to the present tender, the petitioner has supplied drugs worth Rs. 7,89,78,577/- to the 2nd respondent and the 2nd respondent has released amounts only to a tune of Rs. 2,42,78,462/- to the petitioner against the supply of the drugs. In spite of repeated requests, the 2nd respondent has not released the remaining due payments of Rs. 16,79,62,278/-. Due to which the petitioner was financially constrained to carry out its business. In the meantime, the petitioner was surprised to receive an e-mail communication from the 2nd respondent dated 07.02.2024, wherein the 2nd respondent has sought to cancel the 2 POs issued by the 2nd respondent to the petitioner and the petitioner has made reply through e-mail on 08.02.2024. While the petitioner was anticipating a response from the 2nd respondent to its e-mail dated 08.02.2024, the petitioner was surprised to know on 04.03.2024 that the 2nd respondent, prior to cancelling the POs of the petitioner vide e-mail dated 07.02.2024, had already is