CONTINENTAL CONSTRUCTION LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) By the present petition under Article 225 of the Constitution of India the Petitioner Companies challenge the decision of the State Government refusing pre-qualification of the petitioners for the works of construction of concrete dam across Narmada river (hereinafter referred to as the annum Construction) which decision has been intimated by the 2nd Respondent vide letter of 23/01/1985 as bad in law and void on various grounds averred in the petition. A few facts need he noticed in order to appreciate the challenge to the impugned decision.

(2.) The first Petitioner Company is a multinational company engaged in the business of constructing dams hydro-electric projects irrigation projects harbour airports canals water supply projects etc. and has executed works of the value of exceeding Rs. 600 crores outside India during the period of last nine years. The first Petitioner Company claims that it has been listed as one of the largest international construction companies by the Engineering News-Record Magazine of U. S. A. and has been placed at Sr. No. 42 in the list pertaining thereto. The only other Indian company according to the first Petitioner Company is Indian Railway Construction Company Limited which has been put at Sr. No. 47 by the aforesaid agency. It is claimed by the 1st Petitioner Company that for the year 1982 it effected highest turnover in civil construction works and has been recently pre-qualified for a project in Iraq of the value of Rs. 1000 crores. It has also undertaken works of large magnitude in Middle- East and North Africa. The equity and capital reserve of the first Petitioner Company for the relevant period of 1982-83 is in the vicinity of Rs. 100 crores. The first Petitioner Company has thus earned foreign exchange to the tune of Rs. 100 crores which is again the highest amongst all construction companies operating abroad and has been granted awards by the Government of India for earning such huge foreign exchange from 1980-81 till to-day. The large size projects executed by the first Petitioner Company are amongst others Obra Dam and Power House in U. P. the Tenughat Project in Bihar the Tawa Dam Project in M. P. the concrete Dam in Port Blair in Andaman Island the Lower Jhelum Hydel Project in the Kashmir Valley extension of Shanan Power House in Himachal Pradesh outer Harbour Project at Vishakhapatnam the Dry Dock at Vishakhapatnam the water supply project of Greater Bombay at Bhandup etc. It has also successfully executed dam construction project in Libya in North Africa and Sewage project in Iraq. The capital of the first Petitioner Company is of Rs. 50 crores and its working capital foreign investment and turnover for the year 1982 is to the tune of Rs 108 crores Rs. 67 crores and Rs. 224 crores respectively.

(3.) The 2nd Petitioner Company is a international Canadian Company with a very wide experience and technical expertise acquired over a period of 41 years of its standing in construction of concrete dams and hydro-electric projects and has recently completed the project of Revalstock Dam with a high of 175 meters containing 2 0 0 M3 of mass concrete which is considered to be biggest high quality concrete dam in the world.