WRIT PETITION NO.15863 of 2014:

The petitioner is a Joint Venture company promoted by M/s. Seven Hills Buildcon Private Limited, M/s. Creative Solutions and M/s. S.S.Multi Services. The first respondent is a statutory authority constituted under the provisions of the Hyderabad Metropolitan Development Authority Act, 2008. The second respondent is a 100% subsidiary of the State Government and undertakes infrastructure development as a commercial venture.

The third respondent is the Joint Venture of respondents 1 and 2 and is involved in the development of the Nehru Outer Ring Road. (ORR for short). The fourth respondent is the successful tenderer to whom the subject contract was awarded.

The third respondent issued a notice on 25.03.2014, for collection of user fee through user fee collecting agency, inviting tenders on the basis of competitive bidding for the Nehru Outer Ring Road stretch from Pedda Amberpet (KM 96+650) to Shamirpet (KM 61+100) via Shamshabad, Narsingi, Patancheru, Dundigal and Medchal for a length of 119.450 KMs (with a diversion of about 3 KM at Kandlakoya (Near Medchal) on NH.44 (Interchange) of Nehru Outer Ring Road, Hyderabad including the link road from Gachibowli to Narsingi. The bid invitation, (hereinafter referred to as Notice Invitation Tender, for short NIT), records that the 3rd respondent was entrusted with the development and management of Nehru ORR, entrusted or vested in it by the Government of A.P and HMDA; and they were inviting bids from eligible companies, cooperative societies and registered partnership firms for collection of the user fee for the said section of Nehru ORR. User fee, on the Nehru ORR, was to be collected at 17 inter-change locations (Toll plazas). It was stated in the NIT that the contract would be for a period of 18 months; that HGCL reserved its right to extend the contract period for a maximum period of 6 months after expiry of 18 months (original period of contract); the bidder had to pay 1.25 times (25% extra of the licence fee i.e., the total amount payable by the bidder to the HGCL including the premium) during the extended period; the premium amount quoted by the bidders would be the sole criteria for their selection; and the premium amount, quoted by the bidder per month, was to be paid by him to HGCL in addition to the amounts, shown in column No. 3, payable for the stretch.

The earlier NIT, issued in the month of January, 2012, had resulted in the subject work being awarded in favour of M/s. P.K. Hospitality Services Pvt. Ltd and the said contract expired, as a result of efflux of time, on 25.03.2014. The subject NIT dated 25.03.2014 stipulated the last date for purchase of the bid documents as 25.04.2014, and the last date for submission of bids as 26.04.2014 upto 15.00 hours. The technical bids were stipulated to be opened on 26.04.2014 at 15.30 hours. The financial bids were to be opened later on a date to be notified separately to the technically successful bidders. In the pre-bid meeting held on 09.04.2014, several queries were raised and discussed by the prospective bidders.

The bidding was contemplated to be a two stage process with bidders being required to submit two envelopes one containing the technical bids and the other containing the financial bids. The Invitation to Bid (ITB for short) envisaged that, after the technical bid envelope was opened, it would be assessed basing on the grading/marking of 100 points; bids of only those who secured 75 points, from out of 100 points, would be deemed to be responsive; and it is only their financial bids which would then be opened by the third respondent. Nine bidders participated in the bidding, and their technical bids were opened.

The petitioner claims to have quoted a financial bid of Rs.4.45 Crores per month. It is their case that, since they had complied with the eligibility criteria, had demonstrated their net worth as Rs.43.12 Crores, and had complied with the other tender conditions,