ORDER

Heard Mr. K. Talukdar, learned counsel for the petitioner; Ms. V. Thakuria, learned counsel on behalf of Mr. P. Bhattacharya, learned Central Government Counsel [CGC] for the respondent no. 1; and Mr. M. Sarma, learned Standing Counsel, IOCL for the respondent nos. 2 – 6.

2. The Indian Oil Corporation Limited [IOCL] published a Notice Inviting Tender [NIT] on 01.03.2025 inviting Bids under two-bid system from bidders for a contract-work, ‘Bulk LPG transportation contract by road for the State of Assam & Meghalaya’ [‘the Transport Contract-Work’, for short]. As per the Pre-Qualification Criteria [PQC] prescribed in the NIT/Bidding Document, bidders must offer at least one owned Tank Truck [TT], as on the original closing date of tender, and the bidder should also possess a valid Petroleum Explosive Safety Organisation [PESO] license, as on the original date of closing date of tender, for carrying LPG.

3. Prior to the bid submission closure date, the respondent Corporation published a Corrigendum on 04.04.2025 to bringing certain changes in the terms and conditions of the NIT/Bidding Document. A new provision was introduced by the Corrigendum allowing a bidder to offer more than one TT if the bidder had entered into an Agreement to Sell [ATS] with owner[s] of TT[s] and if the bidder had entered into an ATS, then he can offer such TTs as owned TTs. As per the Corrigendum, in case of TTs offered under ATS were then in any existing contract[s] with any OMCs whose ownerships cannot be transferred during the pendency of the running contract and the formalities for transfer of ownership could not be completed as on the due date of the tender process initiated by the NIT dated 01.03.2025, both the seller and the purchaser [bidder] were to submit an affidavit as per the prescribed format along with the valid registration document and PESO license in the name of the seller. Such TTs shall be considered as the ‘owned’ trucks of the bidders for bid qualification and allocation purpose. It had been provided that in case the bidder would fail to submit the required documents with change of name in the Registration Certificate and PESO license. within four months of issuance of the Letter of Intent, suitable penal action would be taken, which would include forfeiture of EMD and caution money and also, termination order of such TTs and blacklisting of such TTs. In the Corrigendum, it was mentioned that under no circumstances, the timeline would be extended.

4. The petitioner apart from its owned trucks, had also offered TTs under ATS, which were executed with the sellers prior to submission of bid. After the bid closure date, the technical bids and the financial bids of the participant bidders were evaluated. Thereafter, the petitioner was issued Letter of Acceptance [LoA] on 16.09.2025. Subsequently, the petitioner was also issued Work Order to allow him to proceed with the Transport Contract-Work.

5. As stipulated in the Corrigendum, the petitioner could not place the and PESO license for the TTs in respect of which the petitioner had entered into ATSs, in its name A Show Cause Notice dated 05.03.2026 came to be served upon the petitioner while putting the concerned TTs under suspension with immediate effect. In the Show Cause Notice, it was inter alia mentioned that the petitioner had failed to submit the RC and the PESO license in its name within the stipulated time period of four months from the date of Letter of Acceptance [LoA] and therefore, it would call for action as stipulated specifically in the Clause mentioned in the Corrigendum in the following manner :-

In case the bidder fails to submit the required documents with change of name, etc. within 4 months of issue of LOI, suitable penal action shall be taken, which may include EMD forfeiture, caution money forfeiture, termination of order of such TTs and blacklisting of such TTs. Under no circumstances will the above- mentioned timelin