Case Note & Summary
The case involved a dispute over the eligibility of a bid submitted by the appellant for a contract awarded by Bharat Heavy Electricals Limited (BHEL) for the Ash Handling Plant at the Yadadri Thermal Power Station. The appellant, BTL EPC Ltd, entered into a consortium agreement with a Chinese company, Fujian Longking Company Limited, to meet the technical requirements of the tender. The High Court of Karnataka initially dismissed a writ petition challenging the award of the contract, but a Division Bench later reversed this decision, citing the need for the foreign entity to be registered under the Public Procurement Order dated 23 July 2020. The appellant contended that the agreement was not a true consortium but rather a service contract, and that the registration requirement did not apply as they were not procuring finished goods from the Chinese company. The Supreme Court found that the Division Bench had erred in its judgment, emphasizing that the appellant's bid was valid and that the registration requirement did not disqualify the bid. The court restored the Single Judge's decision, allowing the appellant's bid to stand and directing BHEL to continue with the contract. The court also noted the significant progress already made on the project, which would be disrupted by any changes in the awarded contract.
Headnote
A) Public Procurement - Eligibility Criteria - Consortium Agreement Validity - Public Procurement Order, 2020 - The court examined whether the appellant's consortium agreement with a foreign entity complied with the registration requirement under the Public Procurement Order. The Division Bench's reversal of the Single Judge's decision was found unwarranted as the appellant's bid was deemed valid despite the foreign entity's lack of registration. Held that the Single Judge's ruling was restored (Paras 40-42).
Issue of Consideration
Whether the consortium agreement with an unregistered foreign entity violated the Public Procurement Order and affected the eligibility of the appellant's bid.
Final Decision
The Supreme Court allowed the appeals, restoring the Single Judge's decision and affirming the validity of the appellant's bid. The judgment of the Division Bench was set aside, and there was no order as to costs.
Law Points
- Tendering process
- consortium agreement
- eligibility criteria
- public procurement
- judicial review
