Neutral Citation Number - 2023:DHC:2069-DB

W.P.(C) 17599/2022

Page 1 of 19

*

IN THE HIGH COURT OF DELHI AT NEW DELHI

Date of decision: 21^st MARCH, 2023

IN THE MATTER OF:

+

W.P.(C) 17599/2022 & CM APPL. 56263/2022

TEQ GREEN POWER XIII PRIVATE LIMITED ..... Petitioner

Through:

Mr. Jayant Mehta, Sr. Advocate with

Mr. Vishrav Mukherjee, Mr. PSS

Bhargava, Ms. Priyanka Vyas, Mr.

Raghav Malhotra and Ms. Aayushi

Khurana, Advocates.

versus

REMC LIMITED

..... Respondent

Through:

Ms. Pinky Anand, Sr. Advocate with

Mr. Balendu Shekhar, Ms. Saudamini

Sharma, Mr. Sriansh Prakash, Mr.

Rajkumar Maurya and Mr. Krishna

Chaitanya, Advocates.

CORAM:

HON'BLE THE CHIEF JUSTICE

HON'BLE MR. JUSTICE SUBRAMONIUM PRASAD

JUDGMENT

SUBRAMONIUM PRASAD, J.

1.

The Petitioner has filed the instant Writ Petition filed impugning the

decision dated 16.12.2022 bearing Reference No. REMCL/CO/PP/P-85

(hereinafter referred to as “Impugned Decision”) rendered by the

Respondent, REMC Limited, in terms of which, the Respondent has

declared the Petitioner to be technically ineligible to participate in the

procurement process of 1000 MW of Round-the-Clock Power from Grid-

Connected Renewable Energy Power Projects, issued vide the Request for

Digitally Signed

By:RAHUL SINGH

Signing Date:23.03.2023

13:32:48

Signature Not Verified

Neutral Citation Number - 2023:DHC:2069-DB

W.P.(C) 17599/2022

Page 2 of 19

Selection

bearing

reference

number

REMCL/CO/PP/P-

85/RTC/1000MW/2022 dated 14 July 2022 (hereinafter referred to as

“Request for Selection”). Shorn of details, the controversy that has arisen

before this Court is that the Petitioner was found ineligible to participate in

the tender process since the “net worth” quoted by it was inclusive of the

value of its preference shares, which, in the view of the Respondent ought to

be excluded from such net worth and pursuant to such exclusion, the “net

worth” criteria set out under the Request for Selection is not being satisfied.

The short issue that is to be decided in this case is whether the value of

preference shares can be included while computing “net worth” and

accordingly, whether the Respondent erred in declaring the Petitioner

ineligible to participate in the tender process in terms of the Request for

Selection.

2.

The Petitioner, TEQ Green Power XIII Pvt. Ltd. is a wholly owned

subsidiary of O2 Power SG PTE. LTD (hereinafter referred to as “O2

Power”), is primarily engaged in generation and supply of power for the

purposes of procurement by various nodal agencies and distribution

companies. The Respondent, Railway Energy Management Company

Limited is a Joint Venture company between Ministry of Railways and Rites

Limited, holding 49% and 51% stake in the Respondent respectively. The

Respondent is the nodal agency of the Indian Railways for implementation

of renewable energy projects.

3.

The factual matrix of the dispute leading up to the filing of the instant

Petition is set out hereinbelow: -

i.

On 14.07.2022, REMC Limited issued a Notice Inviting Tender

(hereinafter

referred

to

as

“NIT”),

being

NIT

No:

Digitally Signed

By:RAHUL SINGH

Signing Date:23.03.2023

13:32:48

Signature Not Verified

Neutral Citation Number - 2023:DHC:2069-DB

W.P.(C) 17599/2022

Page 3 of 19

REMCL/CO/PP/P-85/RTC/1000 MW/2022 inviting bids for and

on behalf of the Indian Railways, for selection of project

developers for supply of 1000 MW Round-the Clock (RTC)

Power from Grid-Connected Renewable Energy (RE) Power

Projects. The Request for Selection, which was issued along with

the NIT, laid down inter alia the procedure for bid evaluation and

the requisite eligibility criteria to be fulfilled by prospective

applicants.

ii.

On 09.11.2022, the Petitioner submitted the relevant documents

along with the technical bid and financial bid.

iii.

On 11.11.2022, the Respondent opened the technical bids

submitted by the applicants.

iv.

The Petitioner ther