( 1 ) THE petitioner company challenges the decision of the respondent No. 2 in awarding Engineering, Procurement and Construction contract for natural gas fired combined cycle power plant at Hazira to the respondent No. 3 company. Initially when the petition was filed, the prayer was to quash the decision selecting the respondent No. 3 as EPC contractor, but later when it came to light that resolutions were already passed by the Management Committee and the Board of Directors and the contracts were entered into on 13th December, 1999, pursuant thereto between the respondents Nos. 1, 2 and 3, the resolutions and the contracts were also challenged by way of an additional prayer.

( 2 ) THE petitioner No. 1 is a multi-dimensional Engineering and Construction company in Indias private sector, as stated in the petition. Its power project group caters to two major areas namely - (i) the large power plants, predominantly connected with the grid as an independent power project and (ii) a captive co-generation business which focuses on the development of projects to serve the captive industrial consumer. 2. 1 the respondent No. 1 is a company promoted by the Government of Gujarat and six other State sector Corporations, inter-alia engaged in the business of exploration and exploitation of oil and gas in Gujarat. The said company, with a view to use natural gas from the gas fields owned by it for generation of power, proposed to establish a Power plant at Hazira in Gujarat under the name of the respondent No. 2, which is a company promoted by the respondent No. 1. 2. 2 the respondents Nos. 1 and 2 are wholly owned State Government Corporations incorporated for exploration of oil and gas and generation of power respectively. For the purpose of selection of EPC contractor for 160 MW Natural Fired Combined Cycle Power Plant, Request for Qualification (for short "rfq") was issued in December, 1998. It was mentioned therein that the respondent No. 1 was proposing to initially set-up a 160 MW Gas based combined cycle power plant at Hazira and the plant capacity would be expanded as and when more gas can be committed. It was mentioned that approval for the proposed power project scheme from the Government was received in principle and that the Gujarat Electricity Board has also cleared the project in its Board meeting. The project was described in paragraph 3. 4 of the RFQ and in context of `physical Facilities of the Project, it was stated that the nominal, net output of the base load, Natural Gas fired, combined cycle power station should be 160 MW +_10% at mean site conditions. The respondent No. 1, in consultation with the Government, was to select co-sponsors to develop the project on a Build-Own-Operate (BOO) basis, which refers to an arrangement whereby the Project company undertakes to finance, insure, design, construct, own, operate and maintain an electric power generating facility. The power generated was to be sold pursuant to Power Purchase Agreement. The respondent No. 2 company was to finalise and sign all agreements necessary to implement the project, including Power Purchase Agreement, Fuel Supply Agreement and Water Supply Agreement etc. This project company created by the respondent No. 1 was to be overall responsible for selecting the equipment, technology, designing the plant, carrying out the plants construction and commissioning, at its own risk. The financing of the project was solely a matter between the respondent No. 1 (including co-sponsor), the Project company and the funding institutions, as stated in the RFQ document in paragraph 3. 6. The evaluation criteria was to include financial strength of the bidder, resource raising capability and ability to execute the contract in envisaged time schedule, equity offered for the Project etc. as mentioned in paragraph 4. 4 of RFQ. 2. 3 twelve pre-qualification bids were actually received against such invitation and seven parties were pre-qualified for