1. A Court has territorial jurisdiction to entertain a writ application if part of the cause of action arose within its jurisdiction. 2. A decision to terminate a contract must be based on valid reasons and cannot be taken at the instance of a third party. 3. A party has a legitimate expectation to be awarded a contract if they have submitted a detailed bid, participated in negotiations, and their offer has been accepted.

SATYA BRATA SINHA, J.

( 1 ) A letter dated 8-10-1995 cancelling acceptance of an offer made by the petitioners as regards supply of loading arms to the respondents Nos. 1 and 2 pursuant to a request for quotation for supply of loading arms as contained in Annexure 'l' to the writ application as also issuance of a global tender notice issued by the first respondent in terms of its letter dated 10th October, 1995 in Annexure 'm' thereto are the subject matter of the present writ application.

( 2 ) THE fact of the matter shortly stated is as follows :-A request for quotation for supply of loading arms was made by the petitioner on or about 14-9-1994 in relation where two bids were required to be submitted in two parts; (i) the unpriced bid complete with technical and commercial details and (ii) price bid complete with all technical details and commercial details as also with full price details.

( 3 ) TECHNICAL specification were required to be given in terms of the requisition attached thereto and in case of revision the same were required to be spelt out. The petitioners submitted their technical commercial bid and price bid on 24-10-1994. Various letters were exchanged and discussions were held for a period of over nine months. By a fax dated 5-8-1995 the offer of the petitioner was accepted by the respondent No. 1 as contained in Annexure-I to the writ application; one of the clauses whereof required joint signature and acceptance of purchase orders by the petitioners as also its American collaborator O. P. W. Engineering System, USA (hereinafter referred to as the 'collaborator' ). On the same date the said offer was accepted by the petitioner but by a fax dated 10th August, 1995 the respondent No. 1 requested the petitioners to hold action on fax of acceptance, which the petitioner agreed in terms of its fax message dated 14th August, 1995 without prejudice to its rights and contentions. However, on 8-10-1995 the respondent No. 1 intimated to the petitioner by a fax message that the earlier fax of acceptance of offer dated 5-8-1995 was cancelled and a decision to reissue tender was intimated to it whereafter on 10th October, 1995 a global notice was issued inviting tenders for supply of loading arms.

( 4 ) THE petitioners contend that they were to supply loading arms to be used in the petroleum industry under technical collaboration with M/s. Engineering System, U. S. A. They submitted bid for 1000 numbers of loading arms to be installed for Indian Oil Corporation at Panipath terminal and after due tender and consideration processes, the respondent No. 1 accepted the same upon holding discussions and evaluation of technocommercial aspects and were awarded a firm order to supply 840 numbers of loading arms purely on merits which was accepted by them. But the impugned action was taken unilaterally in an arbitrary manner at the instance of one M/s. Emco Wheaton, U. K. as some sort of representation was filed by it before the Hon'ble Minister of Petroleum.

( 5 ) THE writ petition was moved on 16-10-1995 and B. Ghosh, J. passed an interim order staying process in respect of global tender and also gave directions to the respondents to file affidavit. The respondents Nos. 1 and 2 moved an appeal on 16-11-1995 against the said order wherein an interim order was passed by the Division Bench on 9-11-1995. On 1-11-1995 the revised schedule for sale of bid document and due dates for opening of bids pursuant to global tender were intimated to the petitioner by respondent No. 1. The petitioner protested with regard to the wording of the proposed press notification on or about 14-11-1995 but despite the same on 16-11-1995 a press notification giving revised dates for global notice inviting tender was issued. On 18-11-1995 the petitioner received the communication from Respondent No. 1 enclosing amendment clause to tender document 7 to be issued pursuant to the global notice inviting tender.

( 6 ) THE contention of the respondents Nos.

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