M/s NATURALS DAIRY (P) LTD. vs The Union of India

IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16712 of 2026
CNR No. BRHC011155142026
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M/s NATURALS DAIRY (P) LTD., a company registered under the
Companies Act, 1956, having its registered office at Plot No. NS-11,
Patliputra Industrial Area, 1st Plot at BIADA Gate No. 5, Town and District
Patna, through its authorised representative Sri Chanakya Vishnugupta, aged
about 55 years, Gender - Male, s/o Shri Krishna Chaitanya Jaiswal, r/o Flat
No. 301, Sumitra Enclave, Road No. 8B, Rajendranagar, Patna-800016.
... ... Petitioner/s
Versus
1. The Union of India through the Secretary, Ministry of Petroleum and Natural
Gas, Government of India, Shastri Bhawan, New Delhi.
2. The Secretary, Ministry of Petroleum and Natural Gas, Government of India,
Shastri Bhawan, New Delhi.
3. Bharat Petroleum Corporation Limited, Bharat Bhawan, 4 and 6 Currimbhoy
Road, Ballard Estate, Mumbai, through its Chairman-cum-Managing
Director.
4. The Executive Director Biofuels (Retail), HQ, Bharat Petroleum
Corporation Limited, 4 and 6 Currimbhoy Road, Ballard Estate, Mumbai.
5. The Procurement Leader - Group 8, Central Procurement Organization
(Marketing), Bharat Petroleum Corporation Limited, A Installation, Sewree
Fort Road, Sewree (East), Mumbai 400015.
6. Indian Oil Corporation Limited, G-9, Ali Yavar Jung Marg, Bandra (East),
Mumbai - 400051, through its Chairman-cum-Managing Director.
7. The Chief General Manager - Biofuels, HO, Indian Oil Corporation Limited,
G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai 400051.
8. Hindustan Petroleum Corporation Limited, Petroleum House, 17, Jamshedji
Tata Road, Mumbai 400020, through its Chairman-cum-Managing Director.
9. The Chief General Manager SOD, ECZ, Hindustan Petroleum Corporation
Limited (Biofuels), Petroleum House, 17, Jamshedji Tata Road, Mumbai -
400020.
... ... Respondent/s
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Appearance :
For the Petitioner/s : Mr. Sanjay Singh, Sr. Advocate
Mr. Nikhil Kumar Agrawal, Advocate
Mrs. Aditi Hansaria, Advocate
Ms. Chitra Dwivedi, Advocate
For the Union of India : Mr. Aarsh Kumar, CGC
For the OMC : Mr. Ankit Katriar, Advocate
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CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE MR. JUSTICE PARTHA SARTHY
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 29-10-2026
This petition has been filed with the prayer to quash
the action of Respondent Nos. 3 to 9 for excluding the petitioner
from the list of registered vendors and thereby shutting the
petitioner out of the Quantity Bid Tender for supply of around
1100 crore litres of Denatured Anhydrous Ethanol for the
Ethanol Supply Year (ESY) 2026-2027, Tender ID 26985
without any notice, hearing or written order and to issue an
appropriate writ, order or directions in the nature of mandamus
commanding the respondents to treat the petitioner as a
registered vendor and to permit it to participate in the aforesaid
tender and for a direction that the termination Letter dated
28.02.2025 having been set aside by this Court vide Order dated
06.05.2026 cannot be made the basis for denying vendor
registration or tender participation to the petitioner and for a
further issuance of writ of mandamus commanding the
respondents to consider and decide the petitioner’s

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representation dated 26.10.2026 by a reasoned order and to
issue a writ of certiorari quashing the OMCs dated 12.10.2026
in so far as it rejects the petitioner’s request for extension of the
date of commencement of commercial supply under the Long
Term Offtake Agreement dated 13.01.2022.
2. The facts to be noted are that the petitioner was
shortlisted, pursuant to EOI Tender floated by BPCL on behalf
of IOCL, BPCL and HPCL for establishment of Dedicated
Ethanol Plants (DEPs) in ethanol-deficit States pursuant to the
Letter of Intent dated 13.11.2021. The petitioner entered into
Long Term Offtake Agreement (LTOA) dated 13.01.2022 for
supply of Denatured Anhydrous Ethanol from the proposed 100
KLPD grain-based DEP at Village Panapur, Motipur, District
Muzaffarpur, Bihar. Under the LTOA, commercial supply was
to commence within the stipulated period from the effective
dated of LTOA. The original commencement date was thereafter
extended by the OMCs on two occasions with the final extended
deadline expiring on 31.03.2024. The company’s further request
dated 31.03.2024 was pending and subsequently, considered by
this Court in the earlier round of litigation being CWJC No.
5685 of 2025, which was disposed of on 06.05.2026, whereby
this Court has in Paragraph No.28 stated as under:

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“28. Having regard to the above mentioned
facts and circumstances, both the impugned
order of termination dated 28.02.2025 and
the order of rejection dated 09.06.2025 are
set aside, the respondent authorities are
directed to reconsider the application for
extension of time made by the petitioner
afresh duly taking into consideration the
stage of completion of the project, the time
for starting the commercial production and
pass a reasoned order. The authority shall
take the decision as expeditiously as
possible preferably within a period of four
weeks from the date of receipt of a copy of
this order. The petitioner is also given
liberty to file necessary documents/photos
or any other supporting material to
evidence the stage of project and also given
an undertaking before the authority with
regard to the time required for completing
the project and starting of the commercial
production.”
3. Pursuant thereto, the respondents have passed the
order dated 12.10.2026, which is also under challenge. The
respondents have in Paragraph No. 11 stated as under:
“10. Finding
Upon an overall consideration of the
directions of the Hon'ble High Court, the
present representation dated 20.08.2026,
the additional communication dated
21.09.2026 and documents submitted
pursuant thereto, the Proceedings of the

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personal hearing dated 21.09.2026, the
updated project status report dated
21.09.2026, the oral submissions made
during the hearing, the undertaking to
commence commercial supply by
31.03.2027, the financing submissions and
IREDA's letter dated 31.08.2026, the DFPD
notification relied upon, and the present
procurement circumstances, the OMCs find
that the Company's submissions and
circumstances have been duly considered
but do not justify grant of the further
extension sought.
The OMCs have consciously considered the
stage of completion and the time proposed
for commercial production, as directed by
the Hon'ble High Court. The latest project
consultant's report records mechanical
completion proposed by 31.12.2026, trial
runs during January 2027, tentative
commercial production from 15.02.2027
and commercial commencement, as a
precaution and safety measure, by
31.03.2027. The decision is based on the
present facts of the petitioner's case, the
material actually placed on record, the
submissions made during the hearing, the
updated project report and the current
procurement circumstances, and not on the

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earlier reasons which were set aside by the
Hon'ble Court. The substantial investment
and progress of the project, the reasons for
delay recorded in the updated report,
IREDA's financial exposure and the
financing hardship asserted by the
Company have been duly recognized and
considered, but they do not, in the
circumstances of the present case, establish
a sufficient basis for preserving the
preferential offtake commitment under the
LTOA after expiry of the twice-extended
deadline. The separate request concerning
participation in the forthcoming Annual
Allocation Bid and exemption from
CTO/PESO submission at the bidding stage
is subject to the applicable bid conditions
and statutory requirements and is not
granted through this order.
11. Decision
In view of the foregoing, and after fresh and
case-specific consideration in compliance
with the order dated 06.05.2026 passed by
the Hon'ble High Court of Judicature at
Patna in CWJC No. 5685 of 2025, the
Company's request for extension of the date
for commencement of commercial supply
under the LTOA dated 13.01.2022, as
amended on 14.04.2023, up to 31.03.2027 is
hereby rejected.

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The request for execution of a modified
Tripartite Agreement with IREDA, insofar
as it is premised upon continuation/
extension of the LTOA, is also not acceded
to. The Company and IREDA may, subject
to applicable policy, tender conditions,
statutory approvals and the requirements of
the financing institution, pursue such other
financing and ethanol procurement
arrangements as may be available to them.
The Company's request for participation in
the forthcoming Annual Allocation Bid with
exemption from final CTO & PESO
approvals at the bidding stage cannot be
granted by this order as the same shall be
governed by the applicable Annual
Allocation Bid/tender conditions and
statutory requirements”.
4. Today, having noted the prayers for which the
petition has been filed, we find the submission of learned Senior
counsel is primarily in equity. Though the learned Senior
Counsel for the petitioner made submissions on merits of the
order, he also states that the petitioner is invoking the equitable
jurisdiction of this Court under Article 226 of the Constitution
of India. He would submit that if the period till 31.03.2027 is
not extended, then a lot of hardship shall be caused to the
petitioner. It would be ultimately a case where the petitioner

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suffers financially.
5. On the other hand, the petition is being contested
by the learned counsel for the respondents by filing a note of
preliminary submissions.
6. Having considered the stand taken by the parties,
we are of the view that the respondents have pursuant to the
judgment of this Court passed a detailed order rejecting the
request made by the petitioner for extension till 31.03.2027. The
same cannot be interfered with as the same is for good and valid
reasons, we note even after more than four years, the production
has not started.
7. The grievance of the petitioner is also against the
tender inviting applications for supply of Denatured Anhydrous
Ethanol to oil companies provided they have all necessary
approvals for production and storage of ethanol in hand.
Though, the learned Senior Counsel for the petitioner says that
it has all the approvals; in the given facts, we are of the view
that the respondents having rejected the request of the petitioner
in terms of the decision dated 12.10.2026, which we have
reproduced above, the very basis for submitting application for
supply of Ethanol does not exist. It follows this Court in the
facts would not like to exercise its jurisdiction under Article 226

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of the Constitution of India and dismiss the petition. It is
ordered accordingly.
8. Pending application(s), if any, shall also stand
disposed of.

(V. Kameswar Rao, CJ)
(Partha Sarthy, J)
shailendra/-
AFR/NAFR
CAV DATE
Uploading Date 03.11.2026
Transmission Date