PATNA WATER SUPPLY DISTRIBUTION NETWORKS PRIVATE LIMITED Vs. BIHAR URBAN INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED & ANR.

JUDGEMENT

(1.) The petitioner has filed the present petition under section 11 of the Arbitration and Conciliation Act, 1996 (hereafter 'the Act'), inter alia, praying that an arbitral tribunal be appointed for adjudicating the disputes that have arisen between the Petitioner and Respondent no.1 (hereafter 'BUIDCo') in relation to a tripartite agreement dated 24.09.2012.

(2.) BUIDCo issued a notice inviting tender for the work of Design, Construction, Installation, Commissioning of Water Treatment Plant (WTP) and Water Supply distribution network in Patna. On 07.12.2011 bid documents were issued for Design, Construction, Installation, Commissioning, Management, Operation and Maintenance of Intake, Raw Water Pump House (RWPH), 220 MLD Water Treatment Plant and Water Supply Distribution Network in Patna, Bihar. In terms of the Bid Document, the bid for the said contract could also be submitted by a consortium of bidders. However, if they were successful, the consortium members were required to incorporate a Special Purpose Vehicle ('SPV').

(3.) In terms of the bid document, Gammon India Limited and Geo Miller Co. Private Limited submitted a bid as a consortium (Gammon-Geo Miller Consortium). The bid submitted by Gammon-Geo Miller Consortium was found to be the lowest and on 27.02.2012, BUIDCo issued a Letter of Acceptance (LOA) accepting the said bid.