DSK Legal Represents ISMA In Supreme Court Matter: “Writ Courts Must Be Slow In Granting Interim Relief In Tender Matters"

DSK Legal Represents ISMA in Supreme Court Matter: “Writ Courts Must Be Slow in Granting Interim Relief in Tender Matters"

DSK Legal, represented the Indian Sugar & Bio-energy Manufacturers Association (ISMA) before the Supreme Court in a matter concerning interim orders issued by the Karnataka High Court affecting ethanol allocation under public tenders for the Ethanol Supply Year 2025–26. The matter also involved Oil Marketing Companies (OMCs) as petitioners before the Court.

Background

The Supreme Court recently set aside an interim order passed by the Karnataka High Court directing revision of ethanol allocation under a public tender issued by OMCs. The Court permitted the OMCs to continue procurement in accordance with the terms of the tender, restoring certainty to the ongoing allocation process.

The proceedings arose from a writ petition filed before the Karnataka High Court by M/s VINP Distilleries and Sugars Pvt. Ltd., seeking directions to the OMCs to revise ethanol allocations under Tender No. 22376 dated 23 September 2025. The petitioner, a Dedicated Ethanol Plant (DEP), relied on the Long-Term Offtake Agreement (LTOA) and argued that it was entitled to a preferential allocation of additional ethanol quantities.

By an interim order dated 15 December 2025, the learned Single Judge of the Karnataka High Court directed the revision of allotment under the Tender in line with the LTOA. The interim direction effectively required the OMCs to reconsider allocations during the pendency of the writ proceedings. The order was subsequently upheld by the Division Bench in the writ appeal.

Supreme Court Intervention

Aggrieved by the aforesaid orders, ISMA and the OMCs approached the Supreme Court. ISMA, an industry body representing approximately 70 sugar mills across the country, contended that the interim directions disrupted the ongoing tender process and created uncertainty regarding ethanol allocations, adversely affecting the uniform procurement framework followed by the OMCs.

The Supreme Court observed that judicial intervention at the interim stage in tender matters must be exercised with caution, as such orders may disrupt public procurement processes. Emphasising the need for restraint, the Court noted:

In view of the above, the Supreme Court, by order dated 26 February 2026, set aside the interim order passed by the Single Judge of the Karnataka High Court, as affirmed by the Division Bench. The Court permitted the OMCs to continue procurement of ethanol in accordance with the terms of the Tender, pending adjudication of the writ proceedings before the High Court.

Cause Title

HINDUSTAN PETROLEUM CORPORATION LIMITED v UOI & ORS [SLP (C) (C) NO.7799 OF 2026] along with ISMA v UOI & ORS. [SLP(C)..DY NO. 12091 OF 2025]

Legal Representation

For the Petitioner (OMCs): Mr. R. Venkataramani, Attorney General for India.

For the Petitioner (ISMA): Mr. Balbir Singh, Senior Advocate, with Mr. Dinesh Pardasani, Mr. Abhishek Singh Baghel, Mr. Siddharth Chechani, and Mr. Parth Tiwari, Advocates.

For the Respondents: Mr. Abhishek Manu Singhvi, Senior Advocate, and Mr. Gopal Subramanium, Senior Advocate, appeared for the contesting respondents.

Conclusion

The Supreme Court’s intervention restores stability to the ethanol tender allocation process and reinforces the principle that writ courts must exercise extreme caution when granting interim relief in tender-related matters. The Court permitted the OMCs to continue procurement of ethanol in accordance with the terms of the tender, subject to the decision of writ proceedings before the High Court.

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