ANDHRA PETROCHEMICALS LIMITED Vs. VISAKHAPATNAM PORT TRUST

JUDGEMENT

(1.) This Writ Petition, filed under Article 226 of the Constitution of India, calls in question the tender cancellation order dtd. 18/8/2020 and the fresh tender notification dtd. 24/8/2020 issued by respondent No.2 and the petitioners herein are consequently praying for a direction to respondent Nos.1 and 2 to execute the lease deed annexed to tender notice dtd. 7/8/2019 in favour of petitioner No.1. According to the petitioners, petitioner No.1 is a Company, incorporated under the provisions of the Companies Act, 1956, and is engaged in business of manufacture and production of OXO-ALCOHOLS and petitioner No.2 is its shareholder. Petitioner No.1 and respondent No.1-Visakhapatnam Port Trust entered into a long term lease deed for a period of 30 years on 27/6/1989 for setting up Petro Chemical Industry and petitioner No.1 herein established the said industry. In view of the expiry of period of lease and as per the Land Policy Guidelines for Major Ports, 2014, the respondent-Visakhapatnam Port Trust issued e-procurement notice dtd. 7/8/2019, inviting tenders for allotment of Ex-Andhra Petro Chemical Limited land including plant and machinery on long term lease of 30 years without renewal option on "as is where is basis" in Zone-Z4 for industrial purpose. In response to the said tender notification, petitioner No.1 herein submitted tender and emerged successful in technical and financial bids. Subsequently, as there was no response from the respondent-Visakhapatnam Port Trust authorities, petitioner No.1 herein addressed a letter dtd. 25/7/2020 to the Hon'ble Minister, Ministry of Shipping, Government of India, complaining about the non-execution of the lease deed. Vide letter dtd. 18/8/2020, respondent No.2 herein cancelled the tender notification dtd. 7/8/2019 and also issued a fresh tender notification dtd. 24/8/2020. In the above background, challenging the validity and the legal sustainability of the cancellation order and the fresh tender notification issued by respondent No.2, the present Writ Petition came to be instituted.

(2.) This Court, while ordering notice before admission on 15/9/2020, in I.A.No.2020, granted interim stay of all further proceedings pursuant to the tender notification dtd. 24/8/2020. Now a petition vide I.A.No.1 of 2021 is filed, seeking to vacate the said interim order. Though the matter is at the stage of admission, with the consent of the learned counsel for the writ petitioners and the respondents and as the pleadings are also complete, this Court deems it appropriate to dispose of this Writ Petition.

(3.) Heard Sri B.Adinarayana Rao, learned Senior Counsel, representing Sri Challa Gunaranjan, learned counsel for the writ petitioners, Sri P.Raviteja, learned Standing Counsel for respondent Nos.1 and 2 and Sri N.Harinath, learned Assistant Solicitor General for the Union of India for respondent No.3, apart from perusing the material available on record.