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2011 Supreme(SC) 304

2011 (4) SCC 756
IN THE SUPREME COURT OF INDIA
V.S. Sirpurkar and T.S. Thakur, JJ
THDC India Ltd.
Versus
Voith Hydro GMBH Co. & Anr.
CIVIL APPEAL NO 2572 OF 2011
Decided On: March 17, 2011

Headnote:A) CIVIL PROCEDURE CODE : O.6 R.4, CONSTITUTION OF INDIA : Art.136, Art.226, CONTRACT ACT : S.5:- This is a classic example of how the rivalry between two rival multinational companies using the legal process to bring to standstill the work of a project of national importance. In view of the substantial public importance involved in the stay order granted by the High court of Uttarakahand against the second price bidding by the two rival companies so as to clear some of the technical and commercial deviations noticed by the panel of experts in the bids already shortlisted, the entire matter was called for by he court o itself and decided the main matter itself. The objection raised by the 1st respondent on the ground that the second tender invitation was meant to facilitate the 2nd respondent whose bid was earlier turned non-responsive.

JUDGMENT

V.S. SIRPURKAR, J. 1. Leave granted. This case is a classic example of the whole nation suffering on account of the fight between two multi-national companies in respect of each other's rights. There is no dispute that the Tehri Pump Storage Plant project is of utmost importance to the State of Uttarakhand particularly, and to the nation generally. Substantial electricity generation is the object of that project. It is only with that objective that a dam was constructed on river Bhagirathi involving crores of rupees for the construction as also for the rehabilitation of the persons who were displaced on account of the construction of dam.

2. Tehri Pump Storage Plant is a project within the larger picture of Tehri Dam and would prove to be a boon for the additional electricity generation. It is a project involving technical issues. The appellant which is a corporation under the Government of India has been at this project right from August, 2007. Considering the tremendous importance of the project, it has yet not been able even to finalize the tender. Three and a half years have rolled by and yet no progress has been made, thanks to the legal battles in between the two giants called Voith GMBH (respondent No.1) and Alstom (respondent No.2).

3. It is not for the first time that this Court has to deal with the matter. Even about a year back, this Court was required to deal with the matter extensively and while dealing with the matter, the Court, in its order dated 26.3.2010 observed:

"17. …We are pained to note that a very important project like the present one is being held up in a legal battle between the two multinational companies. Till today, even the contract has not been finalized. All this would invariably cause loss to the nation. After all, contractual rights of these companies are not more important than the national interest." In spite of these observations, we are extremely sorry to note that the matter has not reached its finality as yet and, therefore, we are constrained to interfere against an interim order passed by the High Court. The issue of national interest is our prime concern, the importance of which cannot be undermined.

4. Before we take up the issue for consideration, a short resume regarding the progress would be worth seeing. The notice inviting tender on the prime turn-key execution was issued on 31.8.2007. Bids were received on 29.12.2007 in all from four companies, the respondents being a part of them. After opening the pre-qualification bids, two of the tendering parties were found to be disqualified leaving only the two respondents in the fray. On 15.1.2009, financial bids were opened in respect of the offers made by the two respondents. Obviously, on the basis of the fact that offers of the two respondents were found to be responsive, respondent No.2 approached the Court by way of a writ petition challenging the validity of the two bids submitted by respondent No.1. The High Court of Uttarakhand issued a stay order and ultimately on 29.6.2009 though it held that the objection raised by respondent No.2 against respondent No.1 regarding its lack of experience was not valid, the bidding documents themselves were not clear as to the manner in which the bids were to be made. It, therefore, directed the appellant to invite fresh bids.

5. Special Leave Petition No.15779 of 2009 came to be filed before this Court and the respondent No.1 also filed an intra-court appeal being Appeal No.131 of 2009 before the High Court of Uttarakhand. With the sole objective of giving quietus to the issues and to provide the motion for the project, this Court transferred the said appeal filed by respondent No.1 and tagged it along with the Special Leave Petition. Since the Attorney General had offered to abide by the operative order of the High Court, this Court directed the appellant herein to invite fresh price bids by its order dated 11.09.2009. Thus, bids were examined by the appellant and it was found that















































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