The main legal point established in the judgment is that a bidder must meet the eligibility criteria and cannot belatedly seek to participate in a bidding process after failing to meet the specified requirements.

( 1 ) THE petitioner Modi Corp. Ltd. by this writ petition seeks a direction to the Union of india to permit, the petitioner along with 3 consortium members to participate in the disinvestment process of respondent No. 2, Videsh sanchar Nigam Limited (hereinafter referred to as vsnl ). Petitioner also seeks that it be given 15 days time for conducting its due diligence on respondent No. 2 for the purpose. An interim application C. M. No. 335/2002 seeking the same prayer as in the writ petition is made.

( 2 ) NOTICE to show cause was issued. in the case on January 10, 2002. returnable on January 28,2002. Learned counsel at. the time of issuance of- notice also made submissions that the petition- er be permitted to carry out due diligence of VSNL respondent No. 2, so as not to delay the processing of the financial bid, if the Court comes to the conclusion that the petitioner should be permitted to participate. It was observed that the Court would consider further directions being given regarding processing of the bid, depending upon the conclusion it reached with regard to the merits of the petitioner s case.

( 3 ) COUNTER affidavits by respondent Union of India and VSNL have been filed. Petitioner has also filed rejoinders thereto. Learned Senior counsel Dr. Abhishek Manu Singhvi and Mr. Rajiv nayyar were heard in support of the petition. Mr. Soli J. Sorabjee, Attorney General for Union of india and Mr. R. N. Trivedi, Additional Solicitor general for respondent No. 2 VSNL were heard in opposition to the writ petition on 28. 1. 2002.

( 4 ) BEFORE coming to the respective submissions of the parties, the relevant and admitted facts on which there is no controversy may be noted:-

(I) Respondent Union of India vide a public notice/advertisement dated February 20. 2001, published in newspapers, as well as on the internet, issued "expression of Interest" under the hand of the Director (Finance) of respondent no. 2, announcing its intention to disinvest 25% of the equity of VSNL to a strategic partner. The notice stated that VSNL was the exclusive provider of public international telecommunications services in India to about 240 territories world wide. Besides being the largest ISP (Internet services provider) in the country with a subscriber base of over 5 lacs. Bids were invited by 10/04/2001. Interested parties were advised to visit the website, particulars of which were given. (ii) The document "expression of Interest" also cent of the equity capital of VSNL. It was also stated that VSNL s monopoly over all international telecom services had been assured by the government of India upto March 31,2002. The company (ies ) Joint Venture (s)/consortium (s) incorporated or to be incorporated, who were interested in participating in disinvestment were required to submit their "expression of Interest" called EOI by 10/04/2001. (ii) The promoters of the applicant company were required to have a net worth of a minimum of rs. 2,500 Crores. The net worth of only those promoters was to be reckoned who had at least 10% equity stake in the total equity of the company. The net worth was defined to mean the sum total of paid up capital and free reserves. The "expression of Interest" was to be submitted along with the request for qualification (RFQ ) together with a statement of legal capacity in the formats specified in preliminary information Memorandum.

( 5 ) THE petitioner did not apply or submit either-the "expression of Interest" or the Request for Qualification by April. 10,2001 or subsequently. The petitioner, for the first time, wrote a letter dated 8/10/2001, to the respondents" showing its interest for inter alia acquiring the 25 per cent equity of VSNL and requested for further information to enable the petitioner to participate in the bid for the purchase of the said shares.

( 6 ) THE petitioner s case is that it had conducted its preliminary enquiries and had found that the net worth of VSNL as on 31. 3. 2000,was rs. 6,174