Soma-CGGC JV challenged process in High Court
Hyderabad High Court
Hyderabad: A division bench comprising Chief Justice Kalyan Jyoti Sengupta and Justice P.V. Sanjay Kumar of the Hyderabad High Court has dismissed an appeal by Soma-CGGC JV company challenging the tender process adopted by the state government and its decision to award the Indira Sagar (Polavaram) irrigation project contract to Transstroy-JSC EC UES (joint venture).
Earlier the appellant company moved a plea before a single judge and the judge dismissed the petition by observing that “Polavaram Project”, as it is popularly known, has been the peoples’ dream for decades. The project has eluded the people so long for no fault of theirs. It cannot afford to wait longer.”
Aggrieved by the order Soma-CGGC JV moved the appeal contending that Transstroy-JSC was not at all qualified to be considered for award of the contract in terms of the eligibility conditions prescribed in the tender notice dated April 16, 2012.
The appellant sought for cancellation of contract and sought a fresh bidding process by extending relaxation to all the prospective bidders for the '4,717 crore Polavaram project.
After hearing the arguments, the bench found that a High Power Committee comprising senior officials of the erstwhile state of Andhra Pradesh reconsidered the matter and five out of the six bidders were found eligible. Thereupon, the price bids of those bidders were opened on Oct. 1, 2012 and the lowest tender was by Transstroy.
The HPC therefore recommended award of the contract to Transstroy as it would save of Rs 663 crore to the public exchequer. While dismissing the appeal the bench said “award of a contract by the state is essentially a commercial transaction and in arriving at such a decision, considerations which are of paramount importance would also be commercial.”
The bench also said that “Before interfering with the award of a contract by the state, the Court must be satisfied that there is some element of public interest involved. The Court cannot substitute its own decision for the decision of an expert evaluation committee”.
While dismissing the appeal, the bench said it appears that the allegations levelled by the appellant as regards the fraud said to have been committed by the respondent company were not ignored and were examined in great detail by the state.
HC stays dispossession of transstroy building:
Justice S.V. Bhatt of the Hyderabad High Court has granted stay on dispossession and demolition of a building owned by M/s. Transstroy (India) Limited at Jubilee Hills of the city.
The judge was dealing with a petition by the company challenging the proceedings of the land acquisition officer of the Hyderabad Metro Rail Ltd to acquire the building of the company. B. Chandrasen Reddy, counsel for the petitioner told the court that the LAO has issued the land acquisition notice under the Act of 1984 even after the new Act, 2013, came into force.
He said that his client has raised specific objection before the LAO contending that the entire acquisition proceedings under the Old Act are bad in law and that no acquisition can be initiated under the New Act as it is not applicable to the works covered under the Metro Railways (Cons-truction) Act, 1978. While granting interim stay, the judge directed the respondents to file their affidavits.
( Source : dc correspondent )
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