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2026 Supreme(AP) 1274

HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
K. SREENIVASA REDDY, J.
Bhavani Industrial Engineering Services – Petitioner
Versus 
Rashtriya Isapt Nigam Limited and others – Respondents
Writ Petition No.30763 of 2025
Decided On : 16-02-2026

Advocates Appeared:
For the Petitioner: Sri V. Sudhakar
For the Respondents: Sri Kiran Kumar Vadlamudi, Sri V. Subramanyam.

ORDER :

K. SREENIVASA REDDY, J.

Heard Sri Y.Sudhakar Rao, learned counsel for the Writ Petitioner and Sri Kiran Kumar Vadlamudi, learned counsel for the respondent Nos.1 to 4.

2. This Writ Petition was filed seeking the following relief:

“…to issue a Writ or Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of 2nd respondent in issuing the impugned Order vide Reference No.25/MS/SBC dated 07.05.2025 banning the petitioner for a period of 3 years with effect from 07.05.2025 and deregistering from the list of Ancillaries/Vendors/ Contractors of RINL from the date of issuance of Banning Order, as illegal, arbitrary, violative of principles of natural justice, apart from violation of the rights of Writ Petitioner under Articles 14, 19 and 21 of the Constitution of India and consequently, set-aside the Banning Order dated 07.05.2025 and pass such other order or orders …”

3. Contents of the affidavit filed by the Managing Partner of Writ Petitioner Company, in brief, are that the Writ Petitioner is a Partnership Firm registered with the Registrar of Firms, Visakhapatnam on 23.09.2015. The main object of the Writ Petitioner firm is to undertake and execute mechanical, structural, civil, electrical equipment erection and commissioning, technological assistance etc., and other contract business. The Writ Petitioner firm is also registered with the Ministry of Micro, Small and Medium Enterprises, Government of India as a Micro Enterprise. The Writ Petitioner firm is also a Registered Contractor of RINL-VSP, vide Registration No.VSP/WC/REGN-P/2023-134, dated 07.10.2023.

(b) On 07.05.2024, 1st respondent called for Tenders for Cleaning Works including Cooling System and PCI of BF-1 and BF-2 vide Notice Inviting Tender No.260000885 with an estimated value of Rs.4,25,62,634.40 paise and the contract period is 24 months. The Writ Petitioner firm participated in the bid and quoted price of Rs.59,58,727.60 paise via RFx No.2600008855. While entering the bid figures, it erroneously entered the digits and quoted the bid price as Rs.59,58,727.60 paise, which is 86% below the estimated amount. Realizing the error, the Writ Petitioner firm immediately made a communication dated 15.06.2024 to 3rd respondent, notifying the above typographical error and stating that it would be impossible for the Writ Petitioner firm to execute the works on the quoted price and apologized for the mistake.

(c) On 25.06.2024, 3rd respondent straightaway issued Suspension Order in respect of business dealings of the Writ Petitioner firm, stating that it was suspended for a period of Six (06) months for backing out from the subject work with effect from 25.06.2024. Respondent No.3, instead of lifting the suspension order after lapse of Three (03) months, vide Order dated 23.01.2025 extended the said suspension for a further period of Three (03) months with effect from 25.12.2024. Respondent No.2, without prior notice or hearing, vide Reference No.25/MS/SBC, dated 07.05.2025 issued order, banning the business dealings with Writ Petitioner firm for a period of Three (03) years with effect from 07.05.2025 and deregistered the firm from the list of Contractors of RINL. After receipt of orders, the Writ Petitioner addressed letters on 13.06.2025 and 15.07.2025 to 2nd respondent requesting the authority to consider the issue amicably, but there was no response whatsoever from 2nd respondent authority. The Writ Petitioner made a representation/ Appeal on 16.08.2025 to 3rd and 4th respondents for withdrawal of banning orders and the same is pending till date. Hence, the Writ Petition.

4. Respondent Nos.1 to 4 filed counter-affidavit denying the contents of the affidavit accompanying Writ Petition, contending inter alia that the Writ Petitioner firm submitted their communication stating the error, was made on 15.06.2024. Immediately upon submission of quotation, on 30.05.2025, the system generated quotation response document that contain explic

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