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.

ORDER :

Nagesh Bheemapaka, J.

The specific case of Petitioners is that Respondent No.1 Telangana State Trade Promotion Corporation Limited is a Government of Telangana undertaking and a State instrumentality within the meaning of Article 12 of the Constitution, established with the object of promoting trade, commerce and industry, including creation and operation of logistics and trade promotional infrastructure such as Container Freight Stations, Inland Container Depots, Cold Storage Plants and Warehouses. Aggrieved by the action of Respondent No.1 Corporation in acting contrary to the terms and conditions of the Request for Proposal and the Letter of Award dated 08.05.2023, and in not entering into or executing the Operation and Management Contract in their favour, despite having been declared as successful bidders, petitioners are before this Court. Such conduct of Respondent No.1 is assailed as arbitrary, illegal, unconstitutional and violative of Article 14 of the Constitution.

1.1. Petitioners state that in furtherance of its mandate, Respondent No.1 Corporation established a Container Freight Station, hereinafter referred to as ‘the Project’, at Mamidipally, Hyderabad, and invited proposals for operating, marketing, developing and maintaining the said facility. They issued a Request for Proposal prescribing the bidding process and schedule for selection of an Operation and Management Operator for the Container Freight Station. It was specifically stipulated therein that the selected bidder would be required to submit a Detailed Business Plan within four weeks of acceptance of the Letter of Award. The Request for Proposal provided that the selected bidder would be responsible for operating, maintaining and marketing the facility for a concession period of 30 years, in accordance with the provisions of the Operation and Management Contract proposed to be entered into between contractor and Respondent No.1 Corporation.

1.2. In response to the Request for Proposal floated by Respondent No.1 Corporation, Petitioner No.1 participated in the bidding process and submitted its technical bid on 26.09.2022. The said technical bid was evaluated by Respondent No.1 and Petitioner No.1 was declared technically qualified, thereby entitling it to participate in the financial bid process. Thereafter, Petitioner No.1 submitted its financial bid on 27.09.2022. Subsequent to negotiations conducted by Respondent No.1 Corporation, Petitioner No.1 submitted a revised financial bid along with a Preliminary Business Plan on 27.03.2023. They were placed before the Board of Respondent No.1 Corporation and were accepted in the 33rd meeting of the Board held on 25.04.2023. Pursuant to the said acceptance, the Operation and Management contract of the Container Freight Station at Mamidipally was awarded to Petitioners, subject to certain conditions.

1.3. Consequent thereto, Respondent No.1 Corporation issued Letter of Award dated 08.05.2023 in favour of the Petitioners, awarding the Operation and Management of the Container Freight Station at Mamidipally, near Rajiv Gandhi International Airport. By virtue of the said Letter of Award, Petitioner No.1 emerged as the successful bidder. It is asserted that Respondent No.1 Corporation stipulated, as prerequisites for execution of the Operation and Management Contract, that Petitioners should incorporate a Special Purpose Vehicle jointly with M/s Shift Logistics, the consortium member, and furnish a Performance Bank Guarantee. In furtherance of the Letter of Award dated 08.05.2023, Petitioners addressed e mail dated 24.05.2023 accepting the selection as successful bidder. It is specifically stated that upon noticing tha