GVPREL MEE Vs. GOVT OF A P

JUDGEMENT

(1.) INTRODUCTION: The Government of Andhra Pradesh mooted water resource development projects for medium size projects in the State with a view to complete all the important projects in progress and also proposed to take up new projects. All these are to be completed within a period of five years to augment irrigation potential. The Government proposed to divide works into suitably large convenient packages so as to invite tenders for Engineering, Procurement and Construction (EPC)on turn key system including investigation, design, preparation of construction of projects, cost estimates, construction, maintenance and operation for one irrigation system. The Government decided to take up the tender process in two stages. In the first stage it proposed to empanel a specified number of special class civil contractors by inviting offers for pre-qualification to tender for the projects. In the second stage it was proposed to again invite tenders inviting offers from empanelled concerns/firms/companies to take up water resources projects on EPC turn key basis. These financial bids are to be evaluated mainly at the stage of a high powered committee and then by the Government. The dispute in this Writ Petition is in relation to rejection of the financial bid/tender of the petitioner which was initially empanelled after pre-qualifying it. The petitioner prays for a Mandamus directing the respondents to issue Letters of Acceptance (LoAs) for packages 90,91 and 98 under category -2 pursuant to tender notice dt.8-1-2005. BACKGROUND FACTS AND PLEADINGS:

(2.) The fact of the matter is not much in dispute. M/s. GVPR Engineers Limited (GVPREL) is a company registered under the Companies Act, 1956. M/s.Megha Engineering Enterprises (MEE) is a partnership firm. Both of them entered into a joint venture agreement on 31-8-2004 in the name and style of GVPREL - MEE (JV). M/s.GVPREL is lead partner in JV. This was done pursuant to a tender notice No.2, dt.13-8-2004 inviting offers for pre- qualification for water resource projects. The deponent of the writ affidavit was authorised to represent the joint venture and sign all pre-qualification documents. After evaluating the pre-qualification documents, the Government empanelled 46 concerns/companies vide their orders in G.O.Ms.No.727, Irrigation & CAD (PPMU), dt.24-9-2004. Subsequently, by another order being G.O.Rt.No.958, dt.28-12-2004 the Government empanelled 19 more companies/concerns. The petitioner JV was empanelled vide G.O.Rt.No.727, dt.24-9-2004 for participation in the procurement for medium size packages of projects under EPC system.

(3.) The petitioner was also allotted user-id as it was e-procurement. The Government of Andhra Pradesh issued tender notice Note procurement-3/2004-2005 for different packages. The petitioner JV submitted its tenders for packages 90, 91 and 98 through its authorised G.P.A holder - G.S.S.Reddy along with bank guarantees on 15-2-2005. The tenders for packages 90 and 91 were opened by the competent authority on 19-2-2005. The petitioner JV was found to be lowest tenderer - L1. The difference in the quoted value between L1 and L2 was Rs.8.48 crores for package 90, and Rs.7.20 crores for package 91.