High Court Of Delhi
PATEL ENGINEERING LTD. - Appellant
Versus
NATIONAL HIGHWAYS AUTHORITY OF INDIA - Respondent
W.P. : 18680 of 2004
Decided On : 02/28/2005
( 1 ) IN these proceedings under Article 226 of the Constitution, appropriate directions have been sought against the National Highway Authority of India (a statutory body, hereafter called "nhai"); the petitioners seek directions to the effect that two pre-qualifying bids/applications made by them, which rely upon experience certificates issued by NHAI, should be processed, and considered on merits. I facts as per pleadings and documents
( 2 ) THE petitioner No 1 (hereafter called "patel Engineering") claim to be a leading Civil Engineering company, who have executed several important public works within the country, and abroad. It entered into Joint Venture Agreement (JV) some time in 1999, with LG Cande, a company incorporated under the laws of South korea. The shares of LG and Patel Engineering, respectively, in the JV, were 75%:25%.
( 3 ) THE JV bid and was awarded a work known as "the SURAT-MANOR tollway PROJECT", by the NHAI. The JV entered into an agreement on 16. 10. 2000 with the NHAI, for the purpose of executing the contract namely, the surat-Manor Toll-way Project (hereinafter called the "surat Contract" ). One of the terms in the Surat Contract/agreement was that both partners of the JV were jointly and severally liable for execution of the contract awarded. Contrary to the commitment made in the JV, it is alleged that LG did not measure up to the performance levels held out, leading to the Patel Engineering eventually "taking over" the execution of the project entirely. A document, styled as "supplementary Joint venture Agreement" was executed on 2. 9. 2002. Nomenclature apart, the document recorded the parting of ways between LG and Patel Engineering. Clause 1 of that supplementary Agreement reads as follows :- "patel shall take over, execute and complete the remaining work of l,g,e and C portion of 75% and all additional work to the original contract with the employer under the Contract as well as works originally earmarked for Patel".
( 4 ) THE NHAI it is averred, was intimated about this Supplementary agreement, by LG and also the Team Leader under the Surat Contract. The supplementary agreement stipulated inter alia, that Patel would give LG a lump sum compensation amount of Rs. 2. 6 crores, as a single payment at the completion of the surat contract when the client (i. e. NHAI) refunded the security deposit.
( 5 ) THE petitioners aver they completed the work under the Surat Contract in january, 2004. On 13. 1. 2004 the team leader for the Surat Contract addressed a letter to the General Manager, NHAI stating that the petitioners ought to be granted a certificate with regard to the entire project. The value of the entire project, it may be mentioned was Rs. 205 millions. The letter was addressed by the team leader to the chief General Manager of NHAI. Under cover of another letter, the Chief General manager sought the approval of Member (Administration) NHAI for the issuance of such certificate to enable Patel Engineering for securing other jobs in NHAI or elsewhere.
( 6 ) THE petitioners were issued a certificate by NHAI, on 19. 3. 2004 to the effect that as on 7. 2. 2004 they had satisfactorily completed the total work on the surat-Manor Project to the tune of Rs. 2050 millions. On the same date pursuant to notices issued by the NHAI, tender documents were issued for a project namely "construction of 4/6 Lance Access Controlled Chittorgarh Bye Pass (KM 15. 90 of nh-79 to KM 2131. 0 of NH-76) in the State of Rajasthan" (hereinafter called the chittorgarh Tender ). These tender documents were available till 20. 4. 2004. It is averred that the petitioners submitted their pre-qualification bid for the project as per the instructions issued by NHAI, in two separate envelops, the first containing the technical bid, second, the financial bid. In support of their claim, the petitioners enclosed the experience certificate issued on 19. 3. 2004 along with the technical bid.
( 7 ) THE experience
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