( 1 ) THE present petition is directed against respondent No. 1 for setting aside the decision to reject the petitioner s bid and award of contract in favour of respondent No. 2 in respect of tender for National Highways Project under loan assistance from the Asian Development Bank (for short ADB ). The petitioner company is part of a Joint Venture set up by Memorandum of Understanding entered into between M/s Graham Construction Ltd. ( an English Company), Satyam Constructions Ltd. and Shankamarayana Construction Company. Respondent No. 1, The National Highways Authority of India, (for short NHAI) is constituted under the provisions of The National Highways Authority of India Act, 1988 (hereinafter REFERRED TO to as the Act) and is an instru- mentality of the State and a State within the meaning of Article 12 of the Constitution of India. Respondent No. 2 is a Joint Venture between a Malaysian and an Indian company and is a competing bidder. Ministry of Surface Transport on behalf of respondent No. l invited applications from contractors for prequalification for certain civil works to be undertaken in the National Highways Projects under the loan assistance from t