Back
IN THE HIGH COURT OF ORISSA, CUTTACK
B.R.Sarangi, V. Narasingh, JJ.
Srb Transport & Ors. - Appellants
Versus
Union Of India & Ors. - Respondents
W.P.(C) No. 2430 of 2022, W.P.(C) No. 2920 of 2022 and W.P.(C) No. 2160 of 2022
Decided On : 14-02-2022
Cancellation of Letter of Acceptance - Contractual Dispute - [Indian Oil Corporation Ltd. - Transportation of Bulk Petroleum Products - Annexure-9, Annexure-4, Annexure-2] - The court considered the cancellation of Letters of Acceptance issued to the petitioners by Indian Oil Corporation Ltd. without assigning any reasons. The court found that the cancellation was unjustified and violated Article 14 of the Constitution of India. The court quashed the impugned orders cancelling the Letters of Acceptance.
Fact of the Case:
The petitioners sought to quash the letters/orders cancelling the Letters of Acceptance issued in their favor and to direct the opposite parties to allow them to execute the works as per the tender documents. The petitioners had complied with the tender conditions, submitted bids, were declared L-1, and had executed agreements with the opposite parties. However, the opposite parties cancelled the Letters of Acceptance without assigning any reasons.
Finding of the Court:
The court found that the cancellation of the Letters of Acceptance without assigning any reason was unjustified and violated Article 14 of the Constitution of India. The court also noted similar cases where orders were quashed due to lack of reasons. The court held that the impugned orders cancelling the Letters of Acceptance could not sustain in the eye of law and quashed them.
Issues: The main issue was the validity of the cancellation of the Letters of Acceptance without assigning any reasons and the jurisdiction of the court to entertain the writ petitions in a contractual matter.
Ratio Decidendi: The court held that the cancellation of the Letters of Acceptance without assigning any reason violated Article 14 of the Constitution of India. The court also emphasized the importance of giving reasons for administrative decisions and the jurisdiction of the court to intervene in cases of arbitrariness and unreasonableness.
Final Decision: The writ petitions were allowed, and the impugned orders cancelling the Letters of Acceptance were quashed. No costs were awarded.
ORDER
Dr. B.R. Sarangi, J. - W.P.(C) No.2430 of 2022 has been filed seeking following reliefs:
"i) Admit the writ application.
ii) Call for the record.
iii) Issue Rule NISI calling upon the Opp. Parties more particularly Opposite Party no. 2 to 4 as to why the impugned order as communicated in the mail dtd. 18.1.2022 under Annexure-9issued by the Opp. Party No. 3 shall not be quashed.
iv) If the Opp. Parties failed to show cause or show insufficient cause, issue a writ in the nature of certiorari or pass any other writ/ writs, direction/directions by quashing the said decision as reflected in the mail dtd. 18.1.2022 under Annexure-9 cancelling the letter of acceptance made in favour of the petitioner pursuant to Annexure-4 series.
v) Issue a writ in the nature of mandamus or any other writ/writs, direction/directions directing the opposite parties, more particularly opposite party Nos.2 to 5 to withdraw THE SAID MAIL UNDER Annexure-9 and both the Opp. Party may be directed to act in terms of the letter of acceptance, already issued in favour of the petitioner on 19.11.2021 under Annexure-4 series and allow the petitioner to execute the work for the entire period as per the tender document under Annexure-2 series.
vi) And/or pass such other order/orders, direction/directions as this Hon'ble Court may deem fit and proper for the ends of justice."
Similarly, in W.P.(C) No.2920 of 2022 the following prayer has been made:
"i) Admit the writ application.
ii) Call for the record.
iii) Issue Rule NISI calling upon the Opp. Parties more particularly Opposite Party no.2 to 4 as to why the impugned order of cancellation as communicated in the mail dtd. 18.1.2022 under Annexure-9 issued by the Opp. Party No.3 shall not be quashed.
iv) If the Opp. Parties failed to show cause or show insufficient cause, issue a writ in the nature of certiorari or pass any other writ/writs, direction/directions by quashing the order of cancellation vide mail communication dtd. 18.1.2022 under Annexure-9.v) Issue a writ in the nature of mandamus or any other writ/writs, direction/directions directing the opposite parties, more particularly opposite party Nos.2 to 5 to act in terms of the letter of acceptance, already issued in favour of the petitioner on 19.11.2021 under Annexure-4 and allow the petitioner to execute the work for the entire period as per the tender document under Annexure-1 series.
vi) And/or pass such other order/orders, direction/directions as this Hon'ble Court may deem fit and proper for the ends of justice."
In the same way, W.P.(C) No.2160 of 2022 has been preferred seeking following reliefs:
"Under the circumstances the Petitioner firm most humbly prays that this Hon'ble Court may be graciously pleased to issue notice of Rule Nisi calling upon the Opposite Parties to show cause as to why the cancellation of LOA issued to Petitioner firm vide Annexure-2 should not be quashed as being illegal and arbitrary:
And upon the Opposite Parties not showing cause/or insufficient cause being shown, this Hon'ble Court be further pleased to quash Annexure-2 for being illegal and null and void and the Opposite Parties and more particular Opposite Party Nos.2 & 3 be directed to award Petitioner firm the work of transportation of IOCLs bulk petroleum products ex-IOCLs Jharsuguda terminal by re-issuing LOA at Annexure-1/1 above to it;
And pass such other and further orders as this Hon'ble Court may deem fit and proper;"
2. Essentially, in the above noted three writ petitions, the petitioners seek to quash the letters/ orders, whereby the Letters of Acceptance issued in their favour have been cancelled, and to issue direction to the opposite parties to allow the petitioners to execute the works for the entire period as per their respective tender documents. Therefore, these three writ petitions are heard together and disposed of by this common judgment, which will govern all the cases.
3. For the sake of convenience, brevity and better appreciation, the facts of W.P.(C) N
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
