The main legal point established is that the tender conditions required the exhaustion of additional trucks offered by successful bidders before engaging third parties, ensuring fairness and adherence to the original tender process.

S. Ravindra Bhat, J.

CM No.34683/2017 (exemption) Allowed, subject to just exceptions.

W.P.(C) No.8421/2017 & CM No.34684/2017 (stay)

1. The writ petitioners claim to be aggrieved by a notice issued on 07.09.2017 by the Bharat Petroleum Corporation Limited (BPCL) for induction of bulk LPG Tank Trucks on ad-hoc basis. Their grievance is that the tender which had been floated on 01.09.2014 by BPCL along with the other petroleum and oil companies on regional/zonal basis and which was finalized subsequently, resulted in selection of several bidders whose Tank Trucks (TTs) were accepted. The petitioners contend that without first exhausting the list of such TTs offered additionally (as was required of the bidders originally when they submitted their tenders), the BPCL cannot enter into contract with third parties.

2. The facts of the case are that BPCL and the other oil companies, namely, Hindustan Petroleum Company and Indian Oil Company invited region and zone-wise bids from eligible owners offering to contract out LPG Tank Trucks (TTs) for transporting bulk LPG. The bidders were asked to quote rates on zonal/regional basis in respect of the companies of their choice. After closure of tenders on 22.09.2014, the bids were analyzed and several tenderers were declared eligible. BPCL entered into contract with these successful bidders. A condition in the contract (preceded by the tender) enabled BPCL to secure additional commitments for provision of TTs. It is not in dispute that the petitioners were found eligible and were successful in the tender process. The BPCL entered into a contract for lease of their TTs on long term basis for the period indicated in the tender. The present grievance is in respect of the tender notice dated 07.09.2017 which reads as follows:

“SUB: NOTICE FOR INDUCTION OF BULK LPG 18 MT TTs ON ADHOC BASIS

The corporation needs to induct additional 18 MTY bulk LPG TTs on ad hoc basis for meeting the enhanced road movement requirements in NR due to restrictions in rail movement and to protect the interest of its business during coming peak season. Approximately 393 nos. Ready Bulk LPG TTs are required to be inducted under the existing Tender No. LPG/LOGS/TT/NR/2014/A for meeting the demand. Existing transporters who are having ready TTs and are willing to place such TTs on ad hoc basis with the Corporation for operating under the existing Bulk LPG Transportation Tender of BPCL, NR may submit their offer with complete offer details as per enclosed format (Annexure I & II) along with required enclosures by 15.09.2017 and no other form/mode of application will be entertained. Offers received after the said due date and time will not be considered for whatsoever reason including for reasons of postal delay, etc. It shall be noted that induction of offered TTs on adhoc basis shall be governed by the rates, terms & conditions of the subject tender, also is subject to fulfilment and compliance of tender condition, verification of documents, selection criteria and subject to compliance to recent various orders of Hon'ble Courts related to the aforesaid bulk tender. While TTs to be inducted under this notice on adhoc basis, it may please be noted that in case at a later date, BPCL does not require some or all these TTs inducted through this notice due to any reason whatsoever such as reduced demand/changes in logistings scenario, the principle of release of TTs inducted under this ad hoc notice, will be based on the order of age, i.e. older TTs will be released first & in seriatim. Kindly note that this notice stands closed upon induction of required no. of TTs.”

3. The writ petitioners contend that the nature of their tenders originally floated and the contracts entered into with them – as well as the other successful bidders, is such that the oil companies are at liberty to engage additional trucks in terms of their later requirements only from amongst successful bidders, having regard to future contingencies. In sa