IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Vijendra Info Soft Private Limited – Appellant
Versus
State of Telangana Rep. by its Principal Secretary, Labour & Employment Department – Respondent
ORDER :
Nagesh Bheemapaka, J.
Petitioner states that it is a duly empanelled outsourcing agency, having been empanelled by the Respondents themselves after due scrutiny of its eligibility, experience, financial capacity and statutory compliances. Petitioner's empanelment was effected through proceedings dated 22.02.2025 issued by the competent authority and the said empanelment has neither been cancelled nor suspended and continues to remain valid as on date.
1.1. It is contended, pursuant to such valid empanelment, the 2nd Respondent, acting as the Chairman of the District Level Outsourcing Committee, Medchal-Malkajgiri District, issued proceedings dated 21.06.2025, whereby the outsourcing and activity services relating to sweeping and security for 12 ESI Dispensaries in Medchal-Malkajgiri District were allotted in favour of Petitioner. The said allotment was made at the request of the 4th Respondent, who is the user department, after evaluating the comparative merits of the eligible agencies. Petitioner states that while issuing allotment in its favour, the 2nd Respondent took into consideration that Petitioner is an experienced agency with sound financial capacity and the necessary
Afcons Infrastructure Limited v. Nagpur Metro Rail Corporation Limited
Administrative actions, especially in outsourcing contracts, must observe principles of natural justice, ensuring fair procedures and justifications for cancellations.
The failure to provide notice and an opportunity for a hearing before revoking the contract constitutes a violation of natural justice principles in outsourcing matters.
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.
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