Honble MATHUR, J.–This Special Appeal under Section 18 of the Rajasthan High Court Ordinance is directed against the judgment of the learned Single Judge dated 25.04.2000, dismissing the writ petition.

(2). The appellant-writ petitioner filed a writ petition under Article 226 of the Constitution of India seeking direction to quash the Memo of Understanding (in short `MOU) dated 22.1.2000 (Annex.2) entered between the first respondent -Rajasthan State Mines & Minerals Ltd. (in short `RSMML) and fourth respondent-M/s American International Health Management Ltd. (in short AIHML) to set up a hospital in joint venture by leasing out a plot of land measuring 18,432 square feet and contributing Rs. one crore (being 10%) to the equity of the hospital project). The petitioner has also sought a direction to quash the approval granted to the said MOU in the 320th meeting of the Board of the RSMML, held on 30.03.2000 (Annex. 4). A further prayer was made to direct the first respondent and its officers to invite bids from all interested persons before awarding contract for establishing a multi-super-speciality hospital in joint venture with the first respondent.

(3). It appears from the pleadings of the parties that the first respondent-RSMML is a company, owned and controlled by the State of Rajasthan. In the year 1997, the first respondent decided to establish a multi-super-speciality hospital for twin purposes. Firstly, for providing medical facilities to its past and present employees and their family members on no profit-no loss basis and other purpose was to provide medical facilities to the citizens of Udaipur including free medical treatment to poor and needy. In search of competent partner, initially the first respondent approached to the Apollo Group of Hospitals. The Apollo Group of Hospitals submitted a project report. They were neither agreeable to provide medical facilities to the employees of the first respondent at no profit-no loss basis nor to provide free medical services to the poor. At this juncture, a company in the name of American International Health Management Ltd. came into existence in the city of Udaipur. Its Chairman and Managing Director Dr. Kirit Kumar Jain approached to the first respondent and agreed with the terms and conditions of providing medical services to its past and present employees and their family members at no profit-no loss basis. It is stated that the entire project is to cost around Rs. 20 crores. The first respondent is to provide the land and to contribute to the share capital of the respondent No.4 to the tune of Rs. one crore only and the remaining amount is to be managed by the fourth respondent. On 29.12.1999, in the 319th meeting of the Board, the proposal for RSMMLs participation in the project of fourth respondent of setting up a super speciality hospital at Udaipur was considered and approved. Accordingly, on 22.01.2000, a Memo of Understanding was entered between the RSMML and AIHML for setting up a joint venture multi super speciality project at Udaipur. The terms and conditions have been set out in the MOU. On 26.03.2000, petitioner Tej Singh Sarupriya, first time sent a proposal dated 26.03.2000, as a Director of Udaipur Hospital and Medical Research Centre Private Limited expressing desire to be a partner in establishing of multi super speciality hospital in the city of Udaipur. He also gave a package for consideration of respondent No.1. It appears from the averments made in the writ petition and Annex. 3 that petitioner Tej Singh Sarupriya is a person dealing in jewellery business. He has 25% share in Udaipur Hospital and Medical Research Centre Private Limited. Having found no reaction on his offer, he approached to this court by way of a writ petition.

(4). It was contended before the learned Single Judge on behalf of the petitioner that the first respondent has acted arbitrarily in entering into agreement with the fourth respondent without giving any publicity and ignoring

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