After More Than 4 Years Without Production, Patna HC Upholds Refusal To Extend Ethanol Plant’s Supply Deadline, Rejects Tender Plea

The petitioner entered into a Long Term Offtake Agreement (LTOA) dated 13 January 2022 to supply ethanol from a proposed dedicated plant. The deadline for commencing commercial supply was extended twice, ultimately to 31 March 2024.

In an earlier proceeding, the High Court set aside the termination and rejection orders and directed the respondents to reconsider the petitioner’s extension request, taking into account the project’s completion stage and the time required to begin commercial production.

On 12 October 2026, the respondents rejected the request to extend the deadline to 31 March 2027, after considering updated project information and other submissions.

The petitioner then challenged that rejection and its exclusion from the registered-vendor list and the ethanol tender.

Article 226 of the Constitution empowers the High Court to grant writ relief, but the Court declined to exercise that jurisdiction where the respondents had passed a detailed, reasoned order on the extension request and the Court found no basis to interfere with it.

The LTOA and the applicable tender requirements governed the petitioner’s contractual supply arrangement and tender participation; the Court noted that supply bidders were required to have the necessary production and storage approvals.

The Court found that the respondents had complied with the earlier remand direction by reconsidering the request and issuing a detailed order addressing the project’s progress, proposed production timeline, financing submissions, and procurement circumstances.

It accepted the respondents’ reasons for refusing a further extension, noting that production had not commenced even after more than four years.

Because the extension was refused, the Court held that the basis for the petitioner’s asserted entitlement to participate in the tender was absent; it therefore declined to grant relief concerning tender participation or vendor status.

It also declined to grant relief concerning the petitioner’s tender participation, and directed that any pending applications stand disposed of.