R.G. Ketkar, J.

1. Heard the learned counsel for the parties. Rule. Counsel for the Respondents waive service. By consent rule is made returnable forthwith and the matter is taken up for hearing and final disposal. By this petition under Article 226 of the Constitution of India, the petitioners pray for issuance of the writ of mandamus directing the Respondent No.1 (Union of India) and the Respondent No.2-Bharat Sanchar Nigam Limited (BSNL), to withdraw, recall and cancel the evaluation of the bids carried out by them and revaluate the said bids strictly in accordance with the terms of the tender dated May 1, 2008, issued by the BSNL; for issuance of a writ, order or direction prohibiting the BSNL from taking any steps or awarding any contract to Respondent No.3-KES International Limited and Respondent No.4-GTA Limited. The controversy arises in the following circumstances.

2. On behalf of the BSNL sealed tenders were invited on two stage bidding system in four parts from the eligible bidders for planning, engineering, supply, installation, testing and commissioning of GSM/UMTS based cellular mobile and supply, installation, testing and commissioning of infrastructure for network of capacity of 25 million lines to be rolled out in three phases in the licensed service areas of the BSNL in West Zone covering Maharashtra, Gujrat, Madhya Pradesh, Chatisgarh.

3. The tender is in four parts. Part-1 covers planning, engineering, supply, installation, testing and commissioning of GSM based cellular network together with 3GPP R4 Core, IMS, IN and VAS. Part-2 covers planning, engineering of 3G network, VAS and MBMS. Part-3 covers supply, installation, testing and commissioning of infrastructure and associated items for radio sites. Part-4 covers OSS/BSS. Eligible bidders can participate in one or more of the parts independently, subject to the fulfillment of the specified eligibility criteria.

4. The tender is divided in XI Sections. Section-I is Notice Inviting Tender (NIT). Clauses 3 to 4.8 lay down the eligibility criteria as per Section-I. Clause 3 thereof provides for eligibility criteria common for all parts. Clause 4.1 lays down eligibility criteria for part-1. Clause 4.2 lays down eligibility criteria for part-2, Clause 4.7 lays down eligibility criteria for part-3 and finally clause 4.8 lays down eligibility criteria for part-4.

5. The tender envisages planning, design, engineering, supply, installation, testing, commissioning and Annual Maintenance Contract (AMC) for 25 million lines of GSM/UMTS R6 equipment in four parts for BSNL Network, each part on turnkey basis in the service areas in which the BSNL has been licensed to operate its mobile services in West Zone. The project is proposed to be executed in four parts, out of which parts I, II and III will be executed in three phases whereas part IV will be executed in only two phases.

6. Clause 6 of Section-I (NIT) lays down that the bid security in the form of Bank Guarantee is Rs.120 crores (Rupees One Hundred Twenty Crores only) for part-1, Rs.15 crores (Rupees Fifteen Crores only) for part-2, Rs. 30 crores (Rupees Thirty Crores only) for part-3 and Rs.15 crores (Rupees Fifteen Crores only) for part-4.

7. Clause 4.2 of Section-II deals with Instructions to Bidders (ITB). Clause 4.2 provides that the bidder is expected to examine all instructions, forms, terms and specifications in the tender document. Failure to furnish all information required as per the tender document or submission of the bid not substantively responsive to the tender document in every respect will be at bidder’s risk and may result in rejection of the bid. Clause 5.1 provides that a prospective bidder requiring any clarification of tender shall notify the purchaser (BSNL) of such queries in writing or by fax at the BSNL’s address indicated in the invitation of the bid, among other things. Clause 5.2 provides that any clarification issued by BSNL in response to the query raised by prospec