ORDER :

1. Heard Sri Dammalapati Srivivas, learned senior counsel appearing on behalf of the petitioner and learned Government Pleader for Medical, Health and Family Welfare appearing for the respondents.

2. This writ petition is filed praying to issue a Writ of Mandamus declaring the action of the 5th respondent in issuing cancellation proceedings vide Rc.No.GHS/2023/1026, dated 01.042023 and subsequent tender notification No.HDS/GHS/2023/2016, dated 01.04.2023 issued by the 3rd respondent without following any procedure contemplated under law as illegal, arbitrary, violation of principles of natural justice and violation of Article 14 of the Constitution of India and also contrary to the orders dated 29.08.2022 passed in W.A.No.554 of 2022 and consequently set aside the cancellation proceedings in Rc.No.GHS/2023/2016, dated 01.04.2023 and subsequent Tender Notification HDS/GHS/2023/1016, dated 01.04.2023.

3. The case of the petitioner, in brief, is as follows:

a) The petitioner firm herein, is registered under the Partnership Act, 1932 under the name and style of M/s.Shivenari Canteen Services and is engaged in the business of diet contract, supply of food, etc.

b) The petitioner firm has been supplying diet in various hospitals in the State of Telangana and has good reputation in providing the patient diets in hospitals for more than a period of 10 years.

c) The petitioner firm having participated in the competitive bidding process for supply of diet to the Gandhi Hospital, Secunderabad, was awarded the letter of award of contract on 27.08.2022 by the 5th respondent vide proceedings Rc.No.HDS/GHS/2022/964.

d) The existing contractor filed W.P.No.20391 of 2022 challenging the termination order and the same was dismissed on 01.08.2022. Aggrieved by the same, the said contractor preferred W.A.No.554 of 2022 and the same was disposed of on 29.08.2022 with a direction to resolve the disputes between the parties as per Article 11(b) of the Agreement through best efforts by mutual discussions amicably and in the event that the parties do not find any acceptable solution within 30 days, they shall appeal to the State Level Committee and the decision shall be final and binding on both parties and that till the period of 30 days, status quo as on date i.e. on 29.08.2022 as regard to supply of diet shall be continued. The State Level Committee has not concluded the dispute within the stipulated time as directed by the Court.

e) The 5th respondent has called for explanation from the petitioner vide Rc.No.3552/HDS/GHS/2022-2023/604, dated 27.02.2023 with regard to the EMD/Security Deposit stating that it was drawn by the 3rd party. The petitioner submitted detailed explanation on 04.03.2023 stating that, EMD was submitted in the right way and there was no condition regarding drawl of DD from a particular person. The petitioner requested either to adjust money or draw the DD as a hand loan. As such Mr Suresh Babu, had drawn the Demand Draft and given to the petitioner and the amount was repaid to the 5th respondent on 16.11.2022.

f) The petitioner had been making repeated oral requests to both the 2nd and 5th respondents to handover the kitchen premises as per the award of contract dated 27.08.2020 but the respondent has not taken any action. It had been orally intimated to the petitioner that the kitchen premises for diet supply would only be handed over, after concluding the dispute resolution between the parties and the previous contractor as directed by the court vide its order in WA. No. 554 of 2022.

g) The 5th respondent vide proceedings in Rc.No.GHS/2023/1026 dated 01.04.2023 cancelled the diet tender which was awarded to the petitioner for supply of diet to the in-patient and duty doctors in the 5th respondent hospital.

h) The 5th respondent has referred to Minutes of State Level Diet Management Committee Meeting held on 29.03.2023.