KAPSCH METRO JV Vs. UOI

JUDGEMENT

(1.) The respondent No. 2, National Highways Authority of India (NHAI) vide Notice dated 20th November, 2006 No. NHAI/CM/MTCS/2006-II invited tenders from established and reliable manufacturers/suppliers for the design, supply, installation, testing, commissioning and maintenance of state-of-the-art Toll Collection Systems at toll plazas on National Highway.

(2.) As per clause 2.7.1 of the Tender Notice, the bidders were required to submit their proposals along with an application fee of Rs.5000/- or US$ 125 and an Earnest Money Deposit (hereinafter referred to as "EMD") of Rs.10,000,000/- (Rupees Ten Million only) or US$ 25,0000 in the form of a demand draft/pay order drawn in favour of "National Highways Authority of India" or any scheduled bank payable at New Delhi. It was further stated in the tender document that the EMD could also be in the form of a Bank Guarantee as per clause 3.2.2 and the format specified in Section VIII of the document was to be valid for a period of 180 days from 5th January 2007 which was the original date fixed for the opening of the bids. It was also mentioned in the Tender document that a bid submitted without EMD and/or the application fee will be summarily rejected.

(3.) The case set up by the petitioner is as under: