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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Kesari Marine Service – Appellant
Versus
Indian Oil Corporation Limited – Respondent
| Table of Content |
|---|
| 1. procedural compliance in tender processes (Para 1) |
| 2. inadequate opportunity for defense in contract cancellations (Para 4) |
| 3. re-examination of previously adjudicated disputes (Para 10 , 11 , 12) |
| 4. judgment on re-establishing contractual obligations (Para 20 , 21) |
ORDER :
1. The case of petitioner is that pursuant to the Tender Notice issued by the 1st respondent for Bunker supply of black oil and white oil through tanker barges to the coastal/foreign run sea going vessels berthed at inner harbor, outer harbor, and outer anchorage of Vizag Port, Petitioner along with others submitted tenders. The name of Petitioner's barge is CAPSTAR-1. After getting fully satisfied about Petitioner's barge, the 1st Respondent accepted the tender submitted by them. Petitioner tendered for 30% transportation of the Oil and it stood as L2 among the Tenderers, L1 being for 50% transportation. It is submitted that the 1st Respondent issued Letter of Acceptance (LOA) dated 20.02.2025, as per which, the period of contract is three years from the date of the LoA, extendable for a further period of 9 months on mutual consent, in line, with GeM conditions. It is stated Petitioner had complie
The court held that the cancellation of a Letter of Acceptance was arbitrary as it was based on a miscalculation of the 30-day compliance period, violating principles of natural justice.
Judicial review of tender decisions is narrow, allowing authorities to decide without court-imposed restrictions, provided they adhere to tender conditions.
The cancellation of a Letter of Acceptance without prior notice or opportunity for the petitioner to respond violates principles of natural justice.
The issuance of a Letter of Award does not establish a binding contract unless all conditions are met and the Operation and Management Contract is executed.
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