Point of Law: Since appropriate remedy is available to proceed ahead against the respondent No.3, i.e. Sterling Group and its promoters, and having efficacious remedy, the reliefs prayed for in the petition may not be granted.

ORDER :

1. By way of this petition under Article 226 of the Constitution of India, the petitioner – Bank has prayed for the following reliefs :-

“12(a) This Hon’ble Court may be pleased to issue a writ of mandamus and/or any other writ, order or direction in the nature of mandamus thereby directing the respondent no. 2 to declare the respondent no. 4 and 5 as the new Concessionaire by granting the Letter of intent and by entering into the concession agreement.

(b) Issue interim and ad-interim relief restraining respondent no. 2 from appointing any other Concessionaire without involving petitioner herein in the process of selection and appointment;

(c) Any other appropriate relief as this Hon’ble Court deems fit in the interest of justice equity and good conscience may be granted considering the facts and circumstances of the present case.”

2. The case of the petitioner is that the department of Ports and Fisheries, Government of Gujarat, announced a Build, Own, Operate, Transfer (“BOOT”) Policy for private sector participation in the development of ports in the state vide its Government Resolution dated 29.07.1997 and according to this BOOT Policy, the Gujarat Maritime Board i.e. respondent no. 2 herein seeks to develop the port facilities in Gujarat by entering into arrangements with the private sector for the design, functioning, financing, building and operation of Dahej port in Gujarat. The petitioner has also asserted that respondent no. 2 invited bids in July, 2007 for the said project in the name of Dahej Port Project and through a process of competitive bidding in December, 2008, selected Sterling Biotech Limited and its associated as “Key Promoters” led by Sterling Biotech Limited who was the lead promoter. Respondent no.2 awarded a letter of intent on 03.01.2009 to the Key promoters to develop, operate and maintain the port on BOOT policy basis and has agreed to license to the said key promoters under the Gujarat Maritime Board Act and accordingly, concession agreement came to be executed. According to the petitioner, respondent no. 2 also agreed to lease the leased premises for the purpose of development under the concession agreement b way of executing separate lease agreement.

2.1. It is the case of the petitioner that key promoters have executed a Shareholders Agreement dated 12.06.2013 allocating the responsibilities among the key promoters to which the key promoters promoted and incorporated M/s. Sterling Port Limited i.e. respondent no. 3 herein as a company under the Companies Act, 1956 to develop, finance, contract, own, maintain and operate the Port and also to transfer the leased premises and the assets thereon to respondent no. 2 on termination of the concession agreement.

2.2. It is further the case of the petitioner that respondent nos. 1 and 2 entered into concession agreement on 18.06.2014 with respondent no. 3 i.e. M/s. Sterling Port Limited and by virtue of the said agreement exclusive right, license and authority during the subsistence of the said concession agreement project work was entrusted. Respondent no. 2 approved the land use plant and 20 years’ development plan and in view of the terms of LOI, a detailed report was prepared and submitted by respondent no. 3 on 22.03.2010 and subsequent modification was also approved vide letter dated 29.04.2010.

2.3. In response to this work, Andhra Bank, Corporation Bank (both now amalgamated with the petitioner i.e. Union Bank of India) and SREI Infrastructure Finance Limited operated as consortium of lenders in the construction of Dahej Port and by virtue of term loan agreement dated 29.03.2011, Andhra Bank extended loan facility of INR 160,00,00,000 in favour of respondent no. 3 and by way of term loan agreement dated 31.03.2011, Corporation Bank also extended loan of INR 145,00,00,000 in favour of respondent no.3. During the passage of time, recently Andhra Bank and Corporation Bank having been merged and amalgamated with the petitioner i.e. Union Bank of Ind