(1.) The present Letters Patent Appeal has been preferred against the judgment dated 5.1.2010, passed by learned Single Judge in CWP No. 2838 of 2008 (Gammon India Limited and others v. State of Himachal Pradesh and others) whereby learned Single Judge has been pleased to set aside order dated 16.9.2008 canceling the "Tidong-II (60 MW) Hydro Electric Project", in District Kinnaur, by the Principal Secretary (Power), State of Himachal Pradesh and setting aside subsequent allotment order dated 24.10.2008 of the above project in favour of H.P. Power Corporation Ltd.
(2.) The State of Himachal Pradesh invited global bids vide advertisement dated 30.10.2005 for execution of Tidong-II (60 MW) Hydro-electric Project. The bid was allocated to M/s. Torrent & Gammon Power AEC Ltd. Mumbai. The offer letter was issued in favour of Gammon India Limited and Torrent Power Limited i.e. respondents No. 1 and 2 on 9.4.2007, upon showing their willingness to sign the Memorandum of Understanding (in short 'MOU') on 21st April, 2007, they were informed on 24th April, 2007 by the Principal Secretary (Power) to sign MOU. In the meantime, respondent No. 1 asked the Principal Secretary (Power) to allow it to make all arrangements including payment of upfront premium, corporate approvals etc. and the Principal Secretary (Power) informed respondents No. 1 and 2 that the MOU would be signed on 21st May, 2007 at 11 A.M. Principal Secretary (Power) also informed petitioner No. 1 that the 'MOU' will be signed by the Managing Director respondent No. 1 only on any working day after 25th June, 2007 and respondent No. 1 vide its letter dated 3rd August, 2007 sent a demand draft of Rs. 60,00,000/- in favour of Principal Secretary (Power), Government of Himachal Pradesh. The respondents No. 1 and 2, in the meantime, had also incorporated new special purpose vehicle (company) on 21st August, 2007 in the name and style of "Tidong Hydel Power Limited" and representation dated 24th September, 2007 was made on their behalf asking the State Government for fixing the date for signing 'MOU', so much so, respondents No. 1 and 2 filed writ petition No. 23 of 2008 in this Court, which, however, was withdrawn subsequently. A show-cause notice dated 28th February, 2008 was issued, which was responded by respondents No. 1 and 2 and in the meantime. Cabinet of State of Himachal Pradesh took a decision on 8th August, 2008 to cancel the allotment of project made in favour of respondents No. 1 and 2 and in that sequence, cancellation order dated 16th September, 2008 was passed and on 24th October, 2010 work was allotted in favour of H.P. Power Corporation Ltd.
(3.) Being aggrieved, respondents No. 1 and 2 preferred CWP No. 2838 of 2008 (titled Gammon India Limited and others v. State of Himachal Pradesh and others) mainly with the following prayers:-