The court emphasized the limited scope of judicial review in contractual matters and highlighted the importance of fairness, non-arbitrariness, and public interest in awarding contracts.

ORDER :

This writ petition is filed by the petitioner challenging the action of the 2nd respondent in not permitting the petitioner to participate in the Notice inviting e-Tender bearing Tender No. SRCC/PT/003/TAPSO/2022-23 on the basis of the booking receipt of the respective category of the trucks obtained from the authorized dealer as illegal, arbitrary and unconstitutional and consequentially to direct the respondent to permit the petitioner to participate in the tender on the basis of booking receipt.

2. Heard the learned counsel for the petitioner Sri R.Sushanth Reddy and learned standing counsel for the respondent No.2/Indane Oil Corporation Limited (IOCL) Sri Dominic Fernandez.

3. Learned counsel for the petitioner submitted that the respondent No.2 invited tenders for award of contract for transportation of Indane LPG cylinders in vertical position on unit rate basis, from Kondapally bottling plant to locations within and outside the States of Telangana and Andhra Pradesh for a period of 3 years. The respondent No.2/Corporation was the manufacturer of Indane LPG gas cylinders. The said gas cylinders were distributed across the States of Telangana and Andhra Pradesh from Kondapally Bottling Plant. The distributors of the said cylinders attached to Kondapally Bottling Plant had an option to either opt to use their own trucks for the transport of the cylinders from the bottling plant to the warehouse or use the trucks provided by respondent No.2/Corporation. The respondent No.2/Corporation had invited for Expression of Interest from the existing distributors attached to Kondapalli Bottling Plant for own load transportation on unit rate basis and the instant tender is floated for the award of contract for transportation to regular distributors. The unit rate basis under the expression of interest was to be fixed on the basis of L-1 rates arrived at in the instant tender. The purpose of both the tenders were the same and they were intertwined.

4. As per clause-I pre-qualification criteria, the bidders were required to provide the self-attested copy of the RC book or Invoice and temporary registration certificates for new trucks. The bidder would also provide an affidavit in case the bidder was willing to use attached truck (Trucks that were not in the name of the bidder). In other words, the bidder should own a truck as on the date of submission of the bids to meet the pre-qualification criteria. The petitioner was a tenderer who was willing to participate in the instant tender process but the petitioner did not have a truck of his own or an attached truck to participate in the tender process. The petitioner was willing to procure a truck of his own and was ready to provide a booking slip to prove his bonafides. The period of contract under clause 10 of the Notice inviting e-Tender did not specify the commencement date of the period of contract. The above clause would show that the date of commencement of the contract was either from the date of placement of the LOI or as advised by the State Office of Indane Oil Corporation (IOC). If the petitioner purchased the truck, the same would be lying idle from the date of submission of the bid till the date of placement of LOI or the date advised by the State office of the IOC. Since the said truck could only be used for the transportation of cylinders, the same could not be used for any other purpose by the petitioner. The same would cause severe financial loss to the petitioner would not be financially viable. The expression of interest which was flouted for the existing distributors attached to Kondapally Bottling Plant for own load transportation also stipulated the condition for the ownership of the vehicle at the time of submission of expression of interest and in the pre-bid meeting dated 12.07.2021 when the said problem of the idling of the truck was brought to the notice