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2025 Supreme(Telangana) 2211

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
MOUSHUMI BHATTACHARYA, GADI PRAVEEN KUMAR, JJ.
M/s. Kan Enterprises – Appellant
Versus
M/s. Kesari Marine Service and Two Others – Respondents
Writ Appeal No.1276 of 2025 
Decided On : 04-12-2025

Advocates Appeared:
For the Appellant : Mr. G.Vidya Sagar, learned Senior Counsel representing Mr. M.Avinash Reddy, learned counsel appearing.
For the Respondents: Mr. S.S. Prasad, learned Senior Counsel representing Mr. S.N. Chidambara Sastry, learned counsel, Mr. Dominic Fernandes, learned Standing Counsel.

Judicial review of tender decisions is narrow, allowing authorities to decide without court-imposed restrictions, provided they adhere to tender conditions.

Headnote:(A) Contract Law - Principles of Judicial Review - The scope of judicial review in matters involving tender conditions is narrow; courts will not interfere unless the decision is arbitrary or unreasonable - Judicial Review should not impede commercial functions. (Paras 26, 27, 28).

(B) Right to Fair Hearing - Where a decision-making authority has been directed to consider a representation, it is to apply its mind independently; prior opinions may guide but cannot constrain its judgment. (Paras 15, 16, 19).

Facts of the case:
The Writ Appeal arises from a Writ Petition challenging the cancellation of a Letter of Acceptance issued by IOCL to the writ petitioner—in light of a previous court order directing IOCL to consider the petitioner's grievance. The cancellation was upheld by IOCL and later reversed by a Single Judge, resulting in the appeal against this reinstatement.

Findings of Court:
The cancellation by IOCL was in accordance with the tender conditions that mandated the petitioner to position the Barge within 30 days of issuance of LoA. This condition was essential and not met.

Issues: The primary issue was whether IOCL’s decision to cancel the LoA was arbitrary and if the previous Single Judge's order was correctly interpreted.

Ratio Decidendi: The Court found that the petitioner failed to adhere to the tender condition of providing the Barge ready for inspection within the stipulated time, and IOCL acted within its rights. The previous order's opinions were not binding on IOCL’s decision-making.

Result: Appeal allowed, setting aside the order dated 07.11.2025.

Table of Content
1. writ appeal arises from prior orders on loa cancellation. (Para 1 , 2 , 3)
2. court’s analysis on procedural compliance and merits of cancellation. (Para 4 , 7 , 11 , 12 , 13 , 14 , 19 , 20 , 21 , 26 , 27 , 28)
3. arguments focus on validity of loa cancellation and adherence to tender conditions. (Para 5 , 6 , 15 , 17 , 24 , 29)
4. timeline and compliance with tender conditions. (Para 8 , 10 , 22)
5. establishes basis for judicial review and loa cancellation. (Para 18 , 25 , 30)
6. conclusion supporting the appeal and setting aside prior order. (Para 31)

JUDGMENT:

Moushumi Bhattacharya, J.

1. The Writ Appeal arises out of an order passed by a learned Single Judge of this Court on 07.11.2025 in W.P.No.16559 of 2025 filed by the respondent No.1 herein. The Writ Petition was filed for a Writ of Mandamus against the respondent No.2/The Indian Oil Corporation Limited (‘IOCL’) with reference to proceedings dated 06.06.2025 by which IOCL upheld the cancellation of the Letter of Acceptance (‘LoA’) dated 20.02.2025 issued to the writ petitioner. The appellant herein was awarded a Work Order on 18.08.2025 after cancellation of the LoA issued in favour of the writ petitioner.

2. By the impugned order, the learned Single Judge allowed the Writ Petition by upholding the cancellation of the LoA/Contract being in violation of an earlier order passed by another learned Single Judge on 07.05.2025. The order dated 07.05.2025 was passed in a Writ Petition filed by the respondent No.1 herein (W.P.No.15034 of 2025). By the impugned order dated 07.11.2025, the learned Single Judge allowed the Writ Petition and set aside the Speaking Order passed by IOCL on 06.06.2025 and directed IOCL to take necessary action for permitting the writ petitioner to continue with its contractual obligations as per the LoA and Work Order.

3. The appellant, who was awarded the work on 18.08.2025, is aggrieved by the impugned order and has challenged the same in the present Appeal.

4. We have heard learned Senior Counsel appearing for the appellant, learned Senior Counsel appearing for the respondent No.1 (writ petitioner) and learned Standing Counsel appearing for the respondent No.2/IOCL.

5. The appellant and IOCL assail the impugned order on the ground that the learned Single Judge reinstated the writ petitioner solely on the earlier order dated 07.05.2025. Senior Counsel appearing for the appellant and Standing Counsel appearing for the respondent No.2/IOCL submit that the earlier order disposed of the Writ Petition filed by the respondent No.1 by directing IOCL to consider the grievance of the writ petitioner as expressed in its representation dated 01.04.2025 and pass an appropriate order within a specific time frame after providing an opportunity of personal hearing to the writ petitioner. It is also submitted that the learned Single Judge re-read the conditions in the tender documents in favour of the writ petitioner which a Writ Court cannot be permitted to do. Counsel refer to several documents showing that the writ petitioner admitted to the delay in complying with the terms of the tender.

6. Learned Senior Counsel appearing for the writ petitioner/the respondent No.1 herein seeks to sustain the impugned order on the ground that IOCL acted in haste in passing the Speaking Order dated 06.06.2025 which was in violation of the orders of status-quo granted in the first round of litigation. Senior Counsel lays emphasis on the order dated 07.05.2025 to urge that the learned Single Judge had opined on the action of IOCL being arbitrary and that such opinion could not be disturbed by IOCL by way of the Speaking Order dated 06.06.2025. In essence, Senior Counsel submits that IOCL reiterated its earlier decision dated 01.04.2025 in cancelling the LoA issued in favour of the writ petitioner.

7. We have considered the oral as well as written submissions made on behalf of the parties and considered the relevant material which have been placed on record.

8. A brief time

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