Rishi Kiran Logistics v. Kandla Port Trust
Background
A bidder received conditional letters of intent for long-term leases of port plots to build storage tanks. Coastal-zone clearance took about five years, during which land values rose sharply; no final allotment, possession or premium payment followed. The Port Trust cancelled the old tender process to seek current market prices, and the bidder challenged the decision through a writ petition.
Decision Breakdown
The Supreme Court dismissed the appeal with costs. Cancellation rested on the prolonged delay and protection of public assets' value, and was not shown to be arbitrary, unreasonable or malicious. The bidder had paid only earnest money and had not changed its position enough to establish the claimed promissory-estoppel relief. The conditional letters and unfinished formalities did not establish a concluded lease on the limited review undertaken; a writ challenge also did not provide full adjudication of disputed private contractual rights.
Lesson Learnt
A conditional letter of intent may not secure a final allotment where approvals and other formalities remain. A public body's reasoned cancellation can survive judicial review, while any disputed contractual remedy must be pursued in the appropriate forum.