APHC010283182025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) r V K> ■ '' ' 'N. /'• 't --VT; THURSDAY, THE EIGHTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO: 14358 OF 202fi Between: M/s. Varasi Oxygen, Having its registered office at, D. No. 1/370 Estate, Yerraguntia, Kadapa District, Andhra Pradesh, Represented by authorised signatory Mr. K. Sunil Kumar. Industrial its ...Petitioner AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary, Medical, Health and Family Welfare Department Secretariat Buildings, Velagapudi, Amaravathi Guntur District, Andhra Pradesh. 2. The Director of Medical Education, Old Government General Hospital, Vijayawada - 520002, Andhra Pradesh. 3. The Collector and District Magistrate, Anantapuram, Anantapur District, A.P. 4. The Joint Collector and Chairman, District Purchase Committee, Ananthapuram, Anantapur District, Andhra Pradesh 5. The Additional Director of Medical Education/Superintendent, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 6. The Administrator, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 7. Shree Bharath Pharma and Medical Oxygen Distributors No 44/86/A2, Roza Street, Near Prakash Nagar, Kurnool, Andhra Pradesh. Represented by its Managing Partner S. Ravikumar. 8. M/s Linde India Limited, Having its office at 7-2-1851/2, Fatah Bagh, Sanathnagar, Hyderabad - 500018, Presently having office at B-239, 6*" Cross, 1"* Stage, Peenya, Bangalore - 560058, Karnataka. ...Respondents Petition under Article 226 of the Constitution of India is filed praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to issue a writ, order or direction, more particularly one in the may nature of writ of mandamus declaring the high-handed action of the 2 Respondent nd the Proceedings 2841202/LMO/SP/DME/2025 dated 04-06-2025, Respondent to procure Liquid Medical Oxygen (LMO) from Respondent No. 7 and 8, without adopting any fair, transparent, and competitive bidding thereby violating fundamental principles of public procurement and contrary the principles of natural justice and violative of Article 14, 19 and 21 of the Constitution of India, Consequently set aside the Proceedings vide Rc.No.2841202/LMO/SP/DME/2025 dated 04-06-2025 issued by the 2 Respondent and direct the respondents to act upon the Report dated 20-04- 2025 submitted by Respondents No. 5 and 6 and continue the the Petitioner for supply of Liquid Medical Oxygen at GGH Anantapuramu @ Rs.22/- per cubic meter and in alternative direct the Respondents to follow due process of law by calling for tenders for Supply of Liquid Medical Oxygen at Government General Hospital, Anantapuramu in issuing vide Rc.No. instructing the 5' process to nd contract with lA NO: 1 OF 202.*^ Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the Proceedings vide Rc.No.2841202/LMO/SP/DME/2025 dated 04-06-2025 issued by the Respondent No.2 pending disposal of the writ petition lA NO: 2 OF 2025 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondent authorities to continue the petitioner to supply the liquid medical oxygen at Government General Hospital, Anantpuram without reference to the period stipulated in the agreement dated 20.06.2020 pending disposal of the Writ Petition lA NO: 3 OF 2025 Between: Shree Bharath Pharma and Medical Oxygen Distributors No 44/86/A2, Roza Street, Near Prakash Nagar, Kurnool, Andhra Pradesh. Represented by its Managing Partners. Ravikumar. ...Petitioners/Respondent No.7 AND 1. M/s. Varasi Oxygen, Having its registered office at, D. No. 1/370, Industrial Estate, Yerraguntia, Kadapa District, Andhra Pradesh, Represented by its authorised signatory Mr. K. Sunil Kumar. ...Respondent/ Writ Petitioner 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Medical, Health and Family Welfare Department Secretariat Velagapudi, Amaravathi Guntur District, Andhra Pradesh. 3. The Director of Medical Education, Old Government General Hospital, Vijayawada - 520002, Andhra Pradesh. 4. The Collector and District Magistrate, Anantapuram, Anantapur District, A.P. Buildings, 5. The Joint Collector and Chairman, District Purchase Committee, Ananthapuram, Anantapur District, Andhra Pradesh 6. The Additional Director of Medical Education/Superintendent, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 7. The Administrator, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 8. M/s Linde India Limited, Having its office at 7-2-1851/2, Fatah Bagh, Sanathnagar, Hyderabad - 500018, Presently having office at B-239, 6 Cross, 1®* Stage, Peenya, Bangalore - 560058, Karnataka. th ...Respondents Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate interim orders dated 18.06.2025 in I.A.No.2 of 2025 in W.P.No. 14358 of 2025, and dismiss the writ petition with exemplary costs lA NO: 4 OF 2025 Between: Shree Bharath Pharma and Medical Oxygen Distributors No 44/86/A2, Roza Street, Near Prakash Nagar, Kurnool, Andhra Pradesh. Represented by its Managing Partner S. Ravikumar. ...Petltioners/Respondent No.7 AND 1. M/s. Varasi Oxygen, Having its registered office at, D. No. 1/370, Industrial Estate, Yerraguntia, Kadapa District, Andhra Pradesh, Represented by its authorised signatory Mr. K. Sunil Kumar. ...Respondent/ Writ Petitioner 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Medical, Health and Family Welfare Department Secretariat Buildings, Velagapudi, Amaravathi Guntur District, Andhra Pradesh. 3. The Director of Medical Education, Old Government General Hospital, Vijayawada - 520002, Andhra Pradesh. 4. The Collector and District Magistrate, Anantapuram, Anantapur District, A.P. 5. The Joint Collector and Chairman, District Purchase Committee, Ananthapuram, Anantapur District, Andhra Pradesh 6. The Additional Director of Medical Education/Superintendent, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 7. The Administrator, Government General Hospital, Ananthapuram Anantapur District, Andhra Pradesh. 8. M/s Linde India Limited, Having its office at 7-2-1851/2, Fatah Bagh Sanathnagar, Hyderabad - 500018, Presently having office at B-239, 6‘^ Cross, 1"* Stage, Peenya, Bangalore - 560058, Karnataka. ...Respondents Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate interim orders dated 18.06.2025 in I.A.No.1 of 2025 in W.P.No. 14358 of 2025, and dismiss the writ petition with exemplary costs lA NO: 5 OF 2025 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to extend the interim order dated 18-06-2025 passed in LA. No. 1 of 2025 in WP No. 14358 of 2025 until further orders in the interest of justice lA NO: 6 OF 2025 Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to extend the interim order dated 18-06-2025 passed in I.A. No. 2 of 2025 in WP No. 14358 of 2025 until further orders in the interest of justice lA NO: 7 OF 2025 Between: The Director of Medical Education, Old Government General Hospital, Vijayawada - 520002, Andhra Pradesh. ...Petitioner/Respondent No.2 AND 1. M/s. Varasi Oxygen, Having its registered office at, D. No. 1/370, Industrial Estate, Yerraguntia, Kadapa District, Andhra Pradesh, Represented by its authorised signatory Mr. K. Sunil Kumar. ...Respondent/ Writ Petitioner 2. The State of Andhra Pradesh, Rep. by its Principal Secretary, Medical, Health and Family Welfare Department Secretariat Buildings, Velagapudi, Amaravathi Guntur District, Andhra Pradesh. 3. The Collector and District Magistrate, Anantapuram, Anantapur District, A.P. 4. The Joint Collector and Chairman, District Purchase Committee, Ananthapuram, Anantapur District, Andhra Pradesh 5. The Additional Director of Medical Education/Superintendent, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 6. The Administrator, Government General Hospital, Ananthapuram, Anantapur District, Andhra Pradesh. 7. Shree Bharath Pharma and Medical Oxygen Distributors No 44/86/A2, Roza Street, Near Prakash Nagar, Kurnool, Andhra Pradesh. Represented by its Managing Partner S. Ravikumar. 8. M/s Linde India Limited, Having its office at 7-2-1851/2, Fatah Bagh, Sanathnagar, Hyderabad - 500018, Presently having office at B-239 Cross, r* Stage, Peenya, Bangalore - 560058, Karnataka. 6’ ...Respondents/Respondents Petition under Section 151 CPC is filed praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the Interim Order dated 18.06.2025 passed in I.A.No.1 OF 2025 in W.P.No.14358 OF 2025 and dismiss the writ petition Counsel for the Petitioner: SRI V NITESH Counsel for the Respondents No.1, 2, 5, 6: GP FOR MEDICAL HEALTH FW Counsel for the Respondents No.3, 4: GP FOR REVENUE Counsel for the Respondent No.7: SRI K VENUGOPAL REDDY Counsel for the Respondent No.8: M/s. JYOTHI RATNA ANUMOLU The Court made the following order: 1 APHC010283182025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) H!¥i0 [3458] THURSDAY,THE EIGHTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE KIRANMAYEE MANDAVA WRIT PETITION NO; 14358/2025 Between: 1.VARASI OXYGEN, HAVING ITS REGISTERED OFFICE AT, D. NO. 1/370, INDUSTRIAL ESTATE, YERRAGUNTIA, KADAPA DISTRICT, ANDHRA PRADESH, REPRESENTED BY ITS AUTHORISED SIGNATORY MR. K. SUNIL KUMAR. ...PETITIONER AND 1.THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL MEDICAL, HEALTH AND FAMILY WELFARE BUILDINGS, ANDHRA SECRETARY, DEPARTMENT VELAGAPUDLAMARAVATHI PRADESH. SECRETARIAT GUNTUR DISTRICT 2.THE DIRECTOR OF MEDICAL EDUCATION, OLD GOVERNMENT GENERAL HOSPITAL, VIJAYAWADA - 520002, ANDHRA PRADESH. 3.THE COLLECTOR AND DISTRICT MAGISTRATE, ANANTAPURAM, ANANTAPUR DISTRICT, A.P. 4.THE JOINT COLLECTOR AND CHAIRMAN, DISTRICT PURCHASE COMMITTEE, ANANTHAPURAM, ANANTAPUR DISTRICT, ANDHRA PRADESH 5.THE ADDITIONAL DIRECTOR OF MEDICAL EDUCATION/ SUPERINTENDENT, GOVERNMENT GENERAL HOSPITAL, ANANTHAPURAM, ANANTAPUR DISTRICT, ANDHRA PRADESH. 2 6.THE ADMINISTRATOR GOVERNMENT GENERAL HOSPITAL ANANTHAPURAM, ANANTAPUR DISTRICT, ANDHRA PRADESH. PHARMA AND MEDICAL OXYGEN DISTRIBUTORS NO 44/86/A2, ROZA STREET, NEAR PRAKASH NAGAR, KURNOOL, ANDHRA PRADESH. REPRESENTED BY ITS MANAGING PARTNER S. RAVIKUMAR 7.SHREE BHARATH 8.M/S LINDE INDIA LIMITED, HAVING ITS OFFICE HYDERABAD AT 7-2-1851/2, - 500018, 1ST STAGE, FATAH PRESENTLY HAVING OFFICE AT B-239, 6TH CROSS, PEENYA, BANGALORE - 560058. KARNATAKA. BAGH, SANATHNAGAR, ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the Circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue a writ, order or direction, more particularly one in the nature of writ of mandamus declaring the high-handed action of the Respondent 2nd issuing the Proceedings 2841202/LMO/SP/DME/2025 dated 04-06-2025, instructing the 5 Respondent to procure Liquid Medical Oxygen (LMO) from Respondent No. 7 and 8, without adopting any fair, transparent, and competitive bidding process, thereby violating fundamental principles of public procurement and contrary the principles of natural justice and violative of Article 14, 19 and 21 of the Constitution of India, Consequently set aside the Proceedings vide 2841202/LMO/SP/DME/2025 dated 04-06-2025 issued by the 2nd Respondent and direct the respondents to act upon the Report dated 20-04- 2025 submitted by Respondents No. 5 and 6 and continue the in vide Rc.No. to Rc.No. contract with the Petitioner for supply of Liquid Medical Oxygen at GGH Anantapuramu @ Rs. 22/- per cubic meter and in alternative direct the Respondents to follow due process of law by calling for tenders for Supply of Liquid Medical Oxygen at Government General Hospital, Anantapuramu and pass lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to suspend the Proceedings vide Rc.No 2841202/LMO/SP/DME/2025 dated 04-06- 2025issued by the Respondent No.2 pending disposal of the writ petition and to pass such lA NO: 2 OF 2025 3 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased lA NO: 3 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate interim orders dated 18.06.2025 in I.A.No.2 of 2025 in W.P.No.14358 of 2025, and dismiss the writ petition with exemplary costs and pass lA NO: 4 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate interim orders dated 18.06.2025 in I.A.No.1 of 2025 in W.P.No.14358 of 2025, and dismiss the writ petition with exemplary costs and pass iA NO: 5 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to extend the interim order dated 18-06-2025 passed in LA. No. 1 of 2025 in WP No. 14358 of 2025 until further orders in the interest of justice and to pass IA NO: 6 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased May be pleased to extend the interim order dated 18-06-2025 passed in I.A. No. 2 of 2025 in WP No. 14358 of 2025 until further orders in the interest of justiceand to pass !A NO: 7 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate the Interim Order dated 18.06.2025 passed in I.A.NO.I OF 2025 in W.P.No.14358 OF 2025 and dismiss the writ petition and pass Counsel for the Petitioner: 4 1.V NITESH Counsel for the Respondent(S): 1.JYOTHI RATNA ANUMOLU 2.GP FOR REVENUE 3. K VENUGOPAL REDDY 4.GP FOR MEDICAL HEALTH FW The Court made the following: ORDER:- Heard Sri 0. Raghu, learned Senior Counsel appearing for Sri V. Nitesh, learned counsel for the petitioner; the learned Government Pleader for Medical, Health and Family Welfare, appearing for respondent Nos.1, 2, 5 & 6 and Sri K.G.Krishnamurthy, learned Senior Counsel for Sri K.Venugopal Reddy, learned counsel for respondent No.7. appearing 2. Challenge in the Writ Petition is to the proceedings of the 2 dated 04.06.2025, directing the 5"^ to procure Liquid Medical Oxygen (LMO) exclusively from 7’^ & 8’^ respondents. nd respondent in Rc.No.2841202/LMO/SP/DME/2025 3. It is contended that in 2018, a tripartite agreement was entered 7*^ & 8'^ respondents for supply of Liquid Medical Oxyg Under the said agreement, each hospital was required to enter into separate agreement with the 7*'^ respondent. The 2'^^ respondent vide proceedings dated 27-09-2018, directed all the Superintendents of the hospitals to enter into tripartite agreement with 7’'" & 8"^ respondents. In terms thereof, the office into between 2 nd en. 5 5'^ th asked the of the respondents 7"^ respondent for agreement to be entered into. However the 7*'^ respondent did not respond to the same. Therefore the 5'^ respondent continued to have the supplies from M/s. R.S. Gas Products, Kurnool. During COVID-19 pandemic, the 3'^'^ respondent sought quotation for supply of medical oxygen from the petitioner herein and one M/s. R.S. Gas Products. The price quoted by the petitioner was found acceptable to the 3'^^ respondent and the same was approved. The same was informed to the 2 proceedings of the respondent dated 14-05-2020. Accordingly an and 6 have nd respondent vide agreement was entered into for a period of five (5) years with effect from 20-06-2020 to 19-06-2025. Accordingly the term of the petitioner expired by 19-06-2025. The 4. petitioner sought for extension of the agreement for supply of medical oxygen at the rate of Rs.22/- per cubic meter. Based on the same, the 4^'^ respondent requested a report from GGH Anantapuramu. Accordingly, reports were submitted. However, the 4‘^ respondent decided to call for New Tenders and nd allow the petitioner to participate in the tender process. But the 2 respondent basing on the old tripartite agreement required the hospital to enter into agreement with the 7'^ respondent. The petitioner thus aggrieved by the same has approached this Court. It is argued by the learned Senior Counsel Sri C. Raghu 5. appearing for Sri V. Nitesh, learned counsel for the petitioner that if the respondents were not willing to extend the agreement in favour of the 6 petitioner, new tendering process ought to have been adopted. Instead, taking a unilateral decision that the supplies should be taken from a particular agency, is not only unjust, and arbitrary but tacks transparency. It is further argued that at the relevant point of time, the 7*^ respondent was given an opportunity to come forward for execution of the agreement with the hospital. However, the respondent never shown any interest for supply of the medical oxygen to the subject hospital. Therefore in terms of the clauses of the agreement dated 03-08-2018, the contract gets terminated. The 2'""' respondent filed counter affidavits contending that the 7'^ respondent was declared as LI bidder for the supply of liquid medical oxygen in the tender process. As a result, the 7'*' & 8'^ respondents entered into a tripartite agreement with the 5th respondent hospital on 05.11.2018, with the intent to commence supply operations from 20.11.2018, subject to the completion of the necessary civil and incidental works relating to the installation of a liquid oxygen plant. Since the said works were not completed within the stipulated period M/s. R.S. Gas Products was allowed to supply the oxygen to the hospital. 6. 7. The learned Senior Counsel Sri K.G.Krishnamurthy, appearing for Sri K.Venugopal Reddy, learned counsel for unofficial respondent No.7 would contend that pursuant to the tripartite agreement, the GGH, Ananthapuramu, was supposed to have completed the civil structures for installation of the supply unit. However he had informed the 2'"'^ respondent vide letter dated 14.05.2020, that installation of oxygen plant Vv/ould take further time and is in 7 progress. With the spread of pandemic, the 3^^ respondent entered into agreement with the writ petitioner herein for supply of medical oxygen and the same had expired in June 2025. It is thus contended that there is no illegality or arbitrariness in the proceedings of the 2""^ respondent in directing the hospital to enter into agreement with the 7 respondent since the parent agreement entered into by the 2'''^ respondent with the 7'^ respondent still subsists. 8. Considered the rival submissions. th 9 The primary contention of the writ petitioner that the 7 respondent did not honour the commitment pursuant to the tripartite agreement dated 30.08.2018, therefore in terms of the clause relating to termination of the agreement, the agreement gets terminated, does not merit consideration. Having regard to the fact that the said agreement is concerning to all the teaching hospitals in the state and the 7'*^ respondent has been making supplies to the other hospitals as per the agreement. Further, the said clause does not contemplate termination of contract as contended by him in the facts as prevailing in the instant case. Clause 5 of the subject tripartite agreement reads as under: '5. Termination of Contract The purchase may ter.minate the contract, if the successful tenderer withdraws its tender after its acceptance or fails to submit the required Performance Securities for the initial contract and or fails to fulfill any other contractual obligations. In that event, the purchaser will have the right to purchase the same 8 ‘ goods/equipment from next eligible bidder and the expenditure on this account shall be recoverable from defaulter. The earnest money and the performance security deposited by the defaulter shall also be recovered to pay the balance amount of extra expenditure incurred by the purchaser. ” extra the 10. Having regard to the fact that the impugned proceedings line with the agreement that has been entered into by the 2 the 7‘^ and 8‘^ respondents, which is in valid operation/force. The termination clause with which the learned counsel had referred has no application to the facts in issue, and it is pertinent to observe that the said termination clause No.5 of the agreement is at the option of the purchaser, the 2""^ respondent herein. The petitioner herein is stranger to the said agreement. Therefore, the petitioner cannot rely on the said clause in support of its contention that the 2'"'^ respondent is acting arbitrarily and in opaque are in nd respondent with manner. 11. It appears from the record that civil works for the installation of the plant were not completed, and the 7'^ respondent was not provided with the facilities for providing the supply. To meet the emergency, the petitioner was required to supply the oxygen. The petitioner’s services were only brought into operation to meet the dire exigencies at the relevant time. It is to be noted that the contract awarded in favour of the petitioner was not through a tender process. The claim of the petitioner that the impugned proceedings of the 2'"'^ respondent are arbitrary is unfounded. 12. This Court, therefore, is of the view that in the absence of any privity of contract between the petitioner and the 2'"'* respondent, the petitioner 9 nd respondent, which are in has no locus to challenge the acts of the 2 furtherance of the agreement entered between the 2^^, 7 th th and 8 respondents. Therefore contentions of the petitioner do not merit consideration and are accordingly dismissed. The Writ Petition is accordingly dismissed. There shall be no 13. order as to costs. As a sequel, all pending miscellaneous applications shall stand closed. Sd/- B CHITTl JOSEPH ASSISTANT REGISTRAR //TRUE COPY// SECTION OFFICER To, 1. One CC to SRI V NITESH Advocate [OPUC] 2. One CC to M/s. JYOTHl 3. Two CCS to GP FOR 4. One CC to SRI 5. Two CCS to GP FOR MEDICAL Andhra Pradesh [OUT] 6. Two CD Copies RATNA ANUMOLU Advocate [OPUC] REVENUE High Court of Andhra Pradesh [OUT] K VENUGOPAL REDDY Advocate [OPUC] HEALTH AND FW High Court of gsg HIGH COURT DATED: 18/09/2025 ORDER WP NO. 14358 OF 2025 DISMISSING THE WP WITHOUT COSTS