1. Chenab Valley Power Projects Private Limited - respondent No.1, which is a Joint Venture of National Hydro Power Corporation Limited (NHPC), J&K State Power Development Corporation Limited (JKSPDC) and Power Trading Corporation India Limited (PTC), responsible to plan, promote and organise an integrated and efficient development of Pakal Dul, Kiru and Kwar Hydroelectric Projects in Chenab River Basin in all its aspects in the State of Jammu and Kashmir, intends to implement Pakal Dul (Drangdhuran) Hydroelectric Project 1000 MW (4 x 250 MW) in J&K and, as such, invited sealed tenders vide Invitation of Bid (International Competitive Bidding) bearing No.CVPP/PD/MW/RB/TK/2013 dated 19th June 2013, for “Turnkey Execution” of Pakal Dul (Drangdhuran) Hydroelectric Project from Consortia/Companies through International Competitive Bidding (ICB). The scope of work included all necessary additional investigations, planning, design and engineering, supply of equipments and materials, civil construction, design, manufacturing, supply installation, testing and commissioning. The project was to be handed over to respondent No.1. One of the conditions contained in Invitation of Bid, at condition No.13, was that the “Owner shall have the right to reject all or any Bid and shall not be bound to accept the lowest or any other Bid or to give any reason for such decision”.

2. Petitioner and proforma respondents 2 and 3 as well responded to above Invitation of Bid. In all, five tenderers responded. Of five, four tenderers were found sound, including petitioner. However, respondent No.1 vide letter No.CVPP/PD/MW/RB/TK-07/2016/2383 dated 16th February 2016, informed petitioner that prices quoted by it were substantially higher than estimated cost of works, based on CEA cleared/Government of India sanctioned estimate of the project, the manner in which the price bid had been structured involving unbalanced distribution among various work components, large amount of front loading and hedging of risks against Owner (respondent No.1) did not infuse confidence on the consortium for successful completion of project works and accordingly conveyed cancellation of both “Turnkey Tender” as also “petitioner’s bid”.

3. Petitioner, aggrieved with decision of cancellation of tender as also its bid, conveyed vide letter No.CVPP/PD/ MW/RB/TK-07/2016/2383 dated 16th February 2016, has knocked at portals of this Court with writ petition on hand, seeking quashment thereof, with further direction to respondent to reconsider petitioner’s tender for allotment of Pakal Dul Project. The case set up by petitioner is:

(a) Petitioner No.1 is consortium of three companies, i.e. petitioner no.2 and proforma respondents 2&3, which had entered into a Consortium Agreement dated 1st October 2013, for submitting a bid to respondent No.1, in response to its Invitation to Tender for Turnkey execution of Pakal Dul Hydro Electric Project in District Kishtwar, Jammu. Petitioner no.2 is a company, duly incorporated under provisions of Companies Act, 1956, having its registered office at Patel Estate Road, Jogeshwari - (W), Mumbai 400102, Maharashtra. Petitioner No.2 is lead partner of said Consortium, i.e. petitioner No.1, and is duly authorised to act for and on behalf of petitioner company and to institute present proceedings through petitioner No.1, Mr Reshi Kumar Sharma, constituted attorney of petitioner no.2, and by virtue of Resolution dated 30th March 2016, duly adopted and passed by Board of Directors of petitioner no.2; he is duly authorised and empowered to institute and file proceedings. Proforma respondent no.2 is a company, duly incorporated under Laws of Turnkey. Proforma respondent no.3 is a company, owned by Government of India and duly incorporated under Companies Act, 1956. The interest of petitioners and proforma respondents 2&3, are common and similar