HYUNDAI ROTEM CO. AND MITSUBISHI CO. Vs. DIT

JUDGEMENT

(1.) THESE applications are filed by two members of a Consortium which was formed to bid and execute a project for Delhi Metro Rail Corporation (for short 'DMRC'). DMRC issued tender inviting bids under the International Competitive Bidding for Mass Rapid Transport System -Phase II Contract/Tender RS3 for design, manufacture, supply, testing, commissioning, training and transfer of technology of 156 Standard Gauge Electrical Multiple Units ('EMUs').

(2.) ON the basis of the above facts, the following question is raised for seeking advance ruling:

(3.) AS noted earlier, the two applicants, namely MC and Rotem together with MELCO and BEML (an Indian company) have formed a consortium and agreed to jointly participate in the global tender invited by DMRC for the aforesaid contract. A Consortium agreement was entered into on 26th April, 2007 broadly agreeing to the terms and conditions under which the parties shall pursue and execute the project. MC was appointed as the Consortium's Leader. MC looks after commercial management and project coordination work. It has the authority to negotiate, finalize and submit all the documents required to be submitted by the consortium and to act as the Official Liaison Officer for the consortium. MC as the Consortium Leader has also been authorized to "incur liabilities and receive any instructions, payments for and on behalf of any or all member firms of the Consortium in regard to all matters related to this project and the bidding therefor". Rotem is designated as the technical leader of the project. It is responsible for the detailed design development, manufacture, supply, testing and commissioning of mechanical portions (rolling stock). MELCO (Mitsubishi Electric Corporation, Japan) is responsible for design, manufacture, supply, testing and commissioning of the propulsion and other electrical equipments of the rolling stock. BEML (Bharat Earth Movers Ltd.) is responsible for local manufacturing and supply of rolling stock except those entrusted to MELCO. The percentage of participation among the parties has been agreed upon as noted earlier. A Supplementary Consortium Agreement was entered into varying the percentage. Both these Consortium Agreements have been placed before DMRC and the letter of approval for the latter is also on record.