NIKHIL ADHESIVES LIMITED Vs. KANDLA PORT TRUST

JUDGEMENT

(1.) The petitioner has filed this petition under Article 226 of the Constitution of India praying for quashing and setting aside the Resolution No.108 dated 22.11.2010 passed by the respondent, Kandla Port Trust. The petitioner has also prayed for stalling the proceedings of fresh tenders in respect of construction of liquid storage tanks issued by the respondent. The petitioner further prayed for the direction to the respondent to issue formal letter of allotment to the petitioner.

(2.) The brief facts giving rise to the present petition are that the respondent invited tenders on 12.03.2005 for allotment of 17 plots for construction of liquid storage tanks at Kandla by issuing a public notice. The petitioner submitted its price bid in August 2005 for allotment of Plot No.8 for construction of liquid storage tanks at Kandla. The petitioner was declared the highest bidder for Plot No.8 by the respondent on 12.01.2006 on the basis of the recommendation of the Tender Committee constituted in the matter of tender for allotment of plot for construction of liquid storage tanks at Kandla. Allotment of 17 plots to the respective highest bidder for 30 years lease is subject to receipt of CRZ Clearance. The petitioner thereafter entered into further correspondence with the respondent between the period from 2006 to 2010. The petitioner thereafter addressed a letter dated 18.01.2010 informing the respondent about their subsidiary Company M/s. Sanghavi Logistics Private Limited, incorporated for construction, maintenance and operation of liquid storage tanks at Kandla and asking permission to carry out construction, maintenance and operation of storage tank at Plot No.8 in the name of M/s. Sanghavi Logistics Private Limited, instead of M/s. Nikhil Adhesives Limited, the petitioner herein. In response to the said letter, the petitioner received a reply dated 18.03.2010 from the respondent stating that the matter of allotment is still not finalized. The petitioner, therefore, approached the respondent and met respondent's Estate Manager who assured the petitioner that things will work out. The petitioner waited in anticipation that things would work out and the respondent being Govt. Organization would take its own time to take decision.

(3.) To the shock and surprise of the petitioner, a Resolution No.108 was passed by the respondent on 22.11.2010 terminating the contract entered into with the petitioner. The respondent vide its letter dated 09.12.2010 informed the petitioner that the Board of Trustees of the Port of Kandla vide Resolution No.108 in its meeting held on 22.11.2010 has decided to cancel the tender process started in the year 2005 for allotment of 17 plots for construction of liquid storage tanks at Kandla. Despite the fact that CRZ Clearance was granted by the Ministry of Forest & Environment on 02.02.2010, the respondent has cancelled the allotment and started fresh tender process by issuing fresh public notice on the website of Kandla Port Trust. The petitioner apprehended that if such tender process is allowed to be completed, in that case, the petitioner would suffer huge losses and all the efforts, time, money, labour invested by the petitioner in furtherance of the said contract would go in vain. The petitioner was, therefore, constrained to file the present petition before this Court.