The court held that absence of statutory obligation for contract renewal negated claims of legitimate expectation, affirming that the empanelment process was transparent and legally compliant.

ORDER :

Nagesh Bheemapaka, J.

Petitioners approached this Court aggrieved by the action of the 2^nd respondent in empanelling Respondents 12 to 17 in Proceedings dated 23.07.2025 pursuant to Tender Notification dated 13.06.2025 thereby issuing work order in Proceedings dated 20.08.2025, without having mandatory requisite qualifications as per terms and conditions of Tender Notice dated 13.06.2025, as illegal, arbitrary and violation of guidelines framed under G.O.Rt.No.4459, dated 27.12.2006 as well as G.O.Rt.No.4271, dated 01.11.2008 and violation of Articles 14, 19 and 21 of the Constitution of India. Consequently, to set aside Proceedings dated 23.07.2025 as well as Proceedings dated 20.08.2025 of the 2^nd respondent issued in favour of Respondents 12 to 17 forthwith, thereby to continue the services of petitioners.

2. Petitioners state that they are established and registered outsourcing agencies, each holding valid and subsisting licenses issued by the competent authorities under the relevant labour, employment and establishment enactments. They have been engaged in the business of providing outsourcing and manpower services to various Government Departments within Suryapet District for several years and have been discharging their obligations strictly in accordance with law and to the satisfaction of the concerned authorities.

2.1. It is stated, petitioners’ firms are fully compliant with all applicable statutory requirements and hold valid registrations, particulars of which are as follows:

(1) M/s. Sangeeta Manpower & Security Solutions Registration No. SEA/SUR/ALO/SP/0330905/2021;

(2) M/s. Bhargavi Graphics - Registration No. SEA/SUR/ALO/SP/53293/2017;

(3) M/s. Sri Sai Ram Infra Projects Registration No. SEA/SUR/ACL/SP/0316206/2021; and

(4) M/s. Leena Manpower Services 0159747/2019. Registration No. SEA/SUR/ALO/SP/

2.2. Petitioners further state that they have been continuously providing outsourcing manpower to various Government Departments, including Medical and Health, Irrigation, Education, and Administrative sectors, within Suryapet District. Their work has been consistently satisfactory, appreciated by the authorities concerned and free from any adverse remarks or complaints. Their registrations and licenses have been periodically renewed and are valid as on date.

2.3. The 2nd Respondent - District Collector and Chairman, District Outsourcing Committee, Suryapet District issued Tender Notification dated 13.06.2025, inviting Applications from qualified outsourcing agencies for empanelment for the financial year 2025-26. The said notification prescribed certain mandatory and essential eligibility conditions that every participating agency was required to fulfil, namely:

(a) the agency must possess a minimum annual turnover of 30 lakhs in any one of the last three financial years;

(b) it must hold valid registration with the Employees Provident Fund (EPF), Employees State Insurance (ESI), Labour Department, and Goods and Services Tax (GST) authorities; and (c) it must submit documentary proof of payment of statutory contributions for at least six months prior to the date of the tender notification.

2.4. Petitioners also state that they fully satisfied all the above-stated conditions and produced the required documents in proof thereof, including turnover certificates, EPF and ESI payment statements, GST returns and valid labour licenses. Upon due scrutiny and verification of these records, the District Level Selection Committee found Petitioners eligible and accordingly empanelled them through Proceedings dated 23.07.2025. They further state that, the 3^rd Respondent - District Employment Officer, Suryapet subsequently published a list o