SOFFIMAT SA Vs. STATE OF H.P.

JUDGEMENT

(1.) THE State of Himachal Pradesh pursuant to the policy guidelines of the Government of India to allow power generation in the private sector, invited bids from private parties for the purpose of setting up Hydro Electric Projects (HEP) in the State of Himachal Pradesh.

(2.) THE petitioner No.1 M/s.Soffimat is a Company having its registered office at Paris. In the competitive bidding it also bid for setting up HEPs at Bharmour (45 MW) and Harsar (60 MW). The petitioner No.2 M/s.Sobra Power Ltd. a Company registered under the Companies Act having its registered office at Chandigarh is stated to be a subsidiary of petitioner No.1.

(3.) DISPUTE arose between the Company and the MOUs were terminated by the Government of Himachal Pradesh on 7th September, 2001. Thereafter, M/s.Soffimat made representations to the Government of Himachal Pradesh and the termination orders were revoked and Supplementary Memorandum of Understandings (SMOUs) were entered into between the parties. The decision of the State of Himachal Pradesh to revoke the orders terminating the earlier MOUs was conveyed to the petitioner No.1 Company vide letter dated 16.2.2002 in which it was mentioned that SMOUs shall be signed with the original member of the consortium and no change in the consortium members shall be permitted except with the prior permission and on such terms and conditions as decided by the Government of Himachal Pradesh.