IMPORTANT POINT
The court established that the principles of natural justice are not absolute in commercial transactions, particularly in tender processes, where public interest prevails.

ORDER :

B. Vijaysen Reddy, J.

The writ petition is filed to declare the action of the respondent No.3 in issuing proceedings vide Rc.No.713/GGH, Nlg.2023 dated 04.03.2024 and thereby terminating the services of the petitioners without issuing any Show Cause Notice and calling for any explanation as being illegal, arbitrary and violation of principles of natural justice.

2. The facts leading to the filing of the writ petition are briefly stated hereunder :

(a) The respondent No.3 issued tender notification dated 28.07.2022 bearing Tender No.713/A3/GGH/NlG/2022/---/District/ IHFMS/2022-23 inviting tenders for providing Integrated Hospital Facility Management Services in Government General Hospital in Nalgonda District in the State of Telangana. Pursuant thereto the petitioner No.1, respondent No.4 and others submitted their bids through e-procurement website. During the evaluation of bids the respondent No.4 was declared L1 and petitioner No.1 was declared L3. However, petitioner No.1-L3 was declared as successful bidder by rejecting the bid of respondent No.4-L1 and Sai Security Services-L2, for non-fulfilment of tender conditions. Thereafter, agreement was entered into between the respondent No.3 and the petitioner No.1 on 24.12.2022 and the petitioner No.1 had been providing services at the Government General Hospital, Nalgonda.

(b) While so, the respondent No.3 issued impugned proceedings bearing Rc.No.713/GGH, Nlg.2023 dated 04.03.2024 cancelling the agreement of the petitioner No.1 and restoring the contract in the name of respondent No.4-L1. The following reasons have been cited in the impugned proceedings:

1. Wrong procedure and technical lapses have been noticed in awarding of tender, first being approved of tender to L3 Agency instead of L1 Agency.

2. It is also noticed that, L3 & L2 are the same property ownership agencies and they been blacklisted by the Government in violating the tender conditions by Sir Ronald Ross, Institute of Tropical and Communicable Diseases, Nallakunta, Hyderabad vie Rc.No.525/G1/SRRIT&CD/2022/375, Dated:13/09/2022 and also for operating in Mahabubabad. The blacklist of agency is hidden by Tender evaluation committee headed by the Superintendent of Government General Hospital, Nalgonda with malice intentions.

3. Further on 01.03.2024, it is noticed that, the (03) Sanitary employees attempted to suicide as the existing agency i.e., Sai Security Services Pvt. Ltd. is not paying their salaries regularly and harassing employees of the Hospital.

3. The petitioner contended that the impugned proceedings are arbitrary and in violation of principles of natural justice. The respondent No.4, having finalized tenders and awarded contract to the petitioner No.1, claimed that wrong procedure has been followed. The tenders have been evaluated in accordance with the conditions prescribed in the tender document. The reasons cited for terminating the petitioner No.1 are uncalled for. So far as blacklisting is concerned, it is submitted that the petitioner No.1 is M/s. Sai Security Services Private Limited and not M/s. Sai Security Services, which is blacklisted. In any event, the said agency approached this Court in WP.No.36339 of 2022 wherein the blacklisting order was suspended. The allegation regarding suicide attempt made by three employees for not paying salaries regularly is without any basis. The petitioner No.1 has 184 employees and only three employees, for extraneous consideration, have blamed the management. The allegation made by the three employees is disproved by statement of salaries, Employees Provident Fund Contribution etc. annexed to the writ petition and the same are regularly filed before the concerned authorities in adherence to the terms of tender conditions and agreement.

4. The case of the respondent No.3 is that three employees, whose services were terminated, have attempted to commit suicide. The same resulted in disruption of services at Government General Hospital, Nalgonda. The petitioner