Rishi Kiran Logistics P.Ltd vs Board Of Trus. Of Kandla Port Trust&Ors;

2. The factual matrix which needs to be taken note of, for the purpose of deciding the present appeal, unfolds as under:-

3. The appellant submitted its bid in respect of Plot Nos. 14, 15 and 17. The technical bids of the bidders, including that of the appellant, were opened on 11.8.2005. Bid of the appellant was found to be technically qualified. Thereafter, price bids were opened on 30.8.2005. These bids were scrutinised by the Tender Committee of the Port Trust. Recommendations were placed before the Board of Trustees in its meeting held on 8.12.2005. It was followed by communication dated 7.1.2006 to the appellant in the form of Letter of Intent (LOI), inter alia stating that the leasehold rights in respect of Plot Nos. 14, 15 and 17 were given for a premium of Rs. 3,200/- per sq. mtrs., 3,150/- per sq. mtr. and 3,120 per sq. mtr. respectively. This communication further mentioned that the formal letter will be issued to the appellant after the receipt of CRZ clearance in general.

6. All these affected persons challenged the validity of Resolution No. 108 of the Port Trust by preferring Writ Petitions under Article 226 of the Constitution of India in the High Court of Gujarat. One such Writ Petition being Special Civil Application No. 286 of 2011 filed by M/s. Nikhil Adhesives Ltd. was dismissed by the High Court vide detailed reasoned judgment dated 4.2.2011. Another SCA NO. 1328 of 2011 filed by IMC Limited was also dismissed by detailed reasoned order on 7.2.2011. When the petition of the appellant herein i.e. SCA No. 1877 of 2011 came up before the same Bench of the High Court on 10.2.2011, following the decision in the said two Writ Petitions the Court dismissed the petition of the appellant as well with one paragraph order, which reads as follows:-

The respondent amended its writ petition accordingly. During the hearing, certain disputed facts cropped up. The High Court called the managers of two of the sugar mills and put some questions to them and recorded their statements. The High Court reached the conclusion that there was a concluded contract between the five sugar mills and the respondent for sale of 85,000 quintals of molasses at a price of Rs. 127 per quintal. Thereafter, it held that having regard to the doctrines of part performance, legitimate expectation, estoppel and acquiescence, the cancellation of the allotment letter issued by ACC was unsustainable. Therefore, the High Court quashed the order of the Secretary (Sugar) and directed that the respondent should be allowed to lift 85,000 quintals of molasses less the quantity already lifted. The said judgment of the High Court was challenged in these appeals.

23. We, therefore, reject this contention of the appellant.

III WHETHER THERE WAS CONCLUDED CONTRACT BETWEEN THE PARTIES:-

28. Before proceeding further in the matter we would again like to discuss the judgment of this court in Kisan Sahkari Chini Mills Ltd. & Ors. (Supra) which has been earlier referred to. This case unambiguously explains the approach which the High Court will have in such a petition filed under Article 226 of the Constitution, dealing with the arguments predicated on contractual aspects.

Aggrieved by the interim order of the High Court to supply 20,000 quintals of molasses to the respondent, the appellants approached the Supreme Court which in turn, set aside that interim order and permitted the respondent to amend the writ petition to challenge the order of the Secretary (Sugar).

It is clear that the aforesaid case is closest to the facts of the present case.

30. We have already held that the impugned decision of the Port Trust was not arbitrary, unreasonable or malafide and further that the doctrine of promissory estoppel has no application in the present fact situation.

37. The outcome of the aforesaid discussion would be to hold that there is no merit in this appeal which is accordingly dismissed with costs.