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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAGESH BHEEMAPAKA
Bharathi Human Capital Resources (OPC) Pvt. Ltd. – Appellant
Versus
State of Telangana Rep. by its Principal Secretary, Labour and Employment Department – Respondent
| Table of Content |
|---|
| 1. continuity of outsourcing services required adherence to prior commitments. (Para 1) |
| 2. authority's discretion in allotting contracts must be exercised fairly. (Para 3) |
| 3. competitive bidding and equal opportunity emphasized in outsourcing. (Para 4 , 5) |
| 4. counterarguments and clarifications regarding the employee's absence. (Para 6) |
| 5. judicial review applies to contractual decisions affecting rights. (Para 8 , 9 , 10 , 11 , 12 , 13) |
| 6. due process and natural justice essential in administrative decisions. (Para 14 , 15 , 16) |
| 7. arbitrariness in administrative actions necessitates judicial intervention. (Para 17 , 18 , 19 , 20 , 21) |
| 8. court's order mandates continuation of services under prior terms. (Para 22 , 23) |
ORDER :
Nagesh Bheemapaka, J.
Petitioner is a company duly incorporated under the provisions of the Companies Act, 2013 and is an empanelled outsourcing agency authorized to provide manpower services to various Government departments on contractual basis. It is their specific case that it has been entrusted with the responsibility of providing outsourcing manpower to various ESI Dispensaries functioning under the Insurance Medical Services Department in Sangar
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.
Administrative actions, especially in outsourcing contracts, must observe principles of natural justice, ensuring fair procedures and justifications for cancellations.
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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