IMPORTANT POINT
Unilateral withdrawal from a contract without mutual consent is arbitrary and violates principles of natural justice, necessitating annulment of such actions.

JUDGEMENT :

1. Heard Mr. M.K. Choudhury, learned senior counsel assisted by Mr. P. Bharadwaj, learned counsel for the writ petitioners. I have also heard Mr. I. Choudhury, learned Advocate General, State of Arunachal Pradesh, assisted by Mr. S. Yrang, learned counsel appearing for the respondent nos. 1, 2 & 3. Mr. T. Tagum, learned counsel has appeared on behalf of the private respondent nos. 4 to 7.

2. By filing this writ petition, the petitioner has inter-alia assailed the Memorandum dated 25/09/2024 (signed on 28/10/2024) issued by the respondent no. 3 as well as the communication dated 08/10/2024 issued by the respondent no.2 whereby, it was intimated that the two districts, viz. Lohit and Namsai were being withdrawn from the allotment made to the petitioner under Zone-I as per the Memorandum of Understanding (MoU) dated 19/01/2022 entered by and between the parties for the purpose of Oil Palm Development in the State of Arunachal Pradesh.

3. The facts and circumstances of the case, giving rise to the filing of the present writ petition, are briefly stated herein below :-

(a) The Director of Agriculture, Government of Arunachal Pradesh i.e. the respondent no. 2 herein had issued a national request for Expression of Interest (EoI) dated 07/12/2021 for selection of Oil Palm Developer and Processor Company for Oil Palm Development in the State of Arunachal Pradesh (For plantation zone:-I comprising of Lohit, Namsai, Changlang and Tirap District). Clause 5 of the EoI lays down the scope of the work which is reproduced herein below for ready reference :- “5. Terms of reference (ToR) Scope of work:

A) The State Government through the Department of Agriculture, Government of Arunachal Pradesh intends to promote cultivation by selecting and mandating 01 (one) competent Oil Palm processor & developer company for area expansion and setting ukp of processing facilities of Oil Palm in potential areas earmarked as Zone: I within the district of Lohit, Namsai, Changlang and Tirap District.

B) Factory/ Plantation zone: I vide Notification No. Agri/TMOP-Oil Palm-02/2013-14, Dtd: 11 ^th Aug. 2014 comprises of all oil palm potential areas under the territorial jurisdiction of Lohit (undivided Lohit district also included present Namsai District), Namsai, Changlang and Tirap district of Arunachal Pradesh for the purpose of Oil Palm development.

C) The intended/ interested Oil Palm developer and processor company interest to take up Oil palm development under Zone: I must agree to take up development of Oil Palm in the above earmarked areas and set up of Oil Palm Mill.

D) Interested companies are broadly expected to work in tandem as per provisions given in the guidelines of NFSN-OS*OP/ NMEO-OP of Govt. of India and instructions of State Government / District level/ Block level Offices of Department of Agriculture. Thus, following Terms of Reference (ToR)/ scope of work shall be considered for engagement and the agreement to be executed through a Memorandum of understanding (MoU).

a) The selected company shall execute a Memorandum of Understanding (MoU) with the State Government of Arunachal Pradesh in line with the provisions of “the Arunachal Pradesh Oil Palm (Production and Processing) Regulation , 2014” for Oil Palm development in Zone: I.

b) The selected company shall abide by “the Arunachal Pradesh Oil Palm (Production and Processing) Regulation , 2014, guidelines and notifications as issued by the Govt. of India and also Government of Arunachal Pradesh in respect of Oil Palm promotion and related matters from time to time.

c) The selected Oil Palm developer and processor company within 30 days from execution of MoU, shall without fail initiate establishment of a centrally located company’s zone office and also deploy extension support for area expansion programmes, nursery development, distribution of planting materials a