PATEL ENGINEERING LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The National Highways Authority of India (for short "NHAI?)/Respondent No. 1, issued a request for qualification in November, 2010 for a six-laning project of Dhankuni-Kharagpur Section of NH-6 from 17,600 to 1,29,000 in the States of West Bengal and Orissa under the National Highway Development Projects Phase-V on design, build, finance, operate, transfer and toll basis. The Petitioner, a public limited company, submitted its bid on 10.01.2011. The bid submitted by the Petitioner and other bidders were processed and by a letter of award dated 17.01.2011, Respondent No. 2 informed the Petitioner that its bid had been accepted and that the Petitioner should execute the relevant documents in that regard.

(2.) It is the say of the Petitioner that on account of various factors including amendments, perceived insufficient time etc., the bid submitted by the Petitioner was significantly higher than it should have been and thus the Petitioner came to the conclusion on 24.01.2011 that the bid made by it was commercially unviable. This fact was intimated to Respondent No. 2 on 24.01.2011 within the period of 7 days prescribed for the Petitioner to execute the necessary documents.

(3.) As a sequitur to this, Respondent No. 2 informed other bidders, and ultimately the contract was awarded to M/S. Ashoka Buildcon Limited at a much lower premium of Rs 126.06 crores. We may notice at this stage that the Petitioner had specified a premium of Rs 190.53 crores.