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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Readers Stores Rep. by its Director Mr. Jagan Mohan Reddy – Appellant
Versus
Telangana State Trade Promotion Corporation Limited, Hyderabad known as TGTPC Rep. by its Chairman – Respondent
| Table of Content |
|---|
| 1. petitioners' claims of legal entitlement (Para 1) |
| 2. respondent's arguments against writ maintainability (Para 2) |
| 3. court's examination of contract enforceability (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 4. dismissal of the writ petition (Para 18 , 19 , 20) |
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 assa
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.
Public authorities must act fairly and cannot arbitrarily terminate contracts without justification, reinforcing the legitimacy of expectations within public-private partnerships.
The authority may cancel a tender without reason if lack of competition is evident; bidders have no enforceable rights without formal acceptance of their bids.
Once the award is notified and the contract is executed, the tender cannot be unilaterally cancelled. Arbitrary cancellation of a tender by a state authority is violative of Article 14 of the Constit....
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