PATEL ENGINEERING LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) The petitioner has filed this petition under Article 226 of the Constitution of India praying for a writ of mandamus directing respondent no.1 to grant the contract no. Gujarat State Highway Project 10 for strengthening of State Highway 24-Rajkot-Morvi (KM 1/827 to KM 70/192) and paving of shoulders in favour of the petitioner. The petitioner has also prayed for a declaration that apprehended action of respondent no.1 -State of granting the above work to respondent no.2 as being contrary to the provisions of the tender notice and bidding instructions, settled norms regarding award of the tender contract, and hence, irrational, unreasonable, discriminatory and unconstitutional,

(2.) Before dealing with the case on hand, and before proceeding with the appreciation, examination and evaluation of rival contentions of the parties, it is necessary to have brief resume of facts of the case and the previous background of the matter, because of which, the present controversy arose before this Court.

(3.) A Loan Agreement was executed on 18-10-2000 between the Government of India and the International Bank for Reconstruction and Development ("the World Bank" for short) agreeing that the World Bank would lend to the Govt. of India on certain terms and conditions set forth in the Loan agreement, an amount equivalent to 381 million dollars ( $ 381,000,000 ) for the purpose of the Gujarat State Highway Project ("GSHP" for short) provided in Schedule 2 to the said loan agreement. Section 1.02 (h) of the said loan agreement refers "Project Agreement" which means the agreement between the Bank and Gujarat of even date herewith, as the same may be amended from time to time, and such term includes all schedules and agreements supplemental to the Project Agreement. Section 2.03 refers to the closing date, which shall be December 31, 2005 or such late date as the Bank shall establish. It also says that the Bank shall promptly notify the borrower of such later date. Section 3.02 says that except as the Bank shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the loan shall be governed by the provisions of Schedule 1 to the Project Agreement. Schedule 2 gives description of the Project which consists of Road Widening and Strengthening, Road Maintenance and Institutional Capacity Improvement.