Mrs. Sujata V. Manohar, J. - (1.) The Maharashtra State Electricity Board, the appellant in Civil Appeal No. 4893 of 1998 floated a tender dated 20-12-1997 for design, engineering, manufacture, supply, erection and commissioning of large diameter pipes and steel tanks with all accessories and auxiliaries as prescribed in the bid documents for units 3 and 4 of Khaperkheda Thermal Power Station, Maharashtra, each unit being of 210 MW. The qualifying requirements of bidders as specified in the tender were, that the bidder should have designed fabricated/manufactured, supplied, erected and successfully commissioned large diameter piping system comprising the supply of M.S. pipes not less than 2000 mm diameter and laid/buried for a minimum total length of 3 kms. in a thermal power station and the same should be in successful operation for the past two years as reckoned on the date set for opening of the bid. Further, the bidder should have minimum turnover of Rs. 7.5 crores per annum for the last 3 consecutive years.
(2.) Under Clause 1.4 of the qualifying criteria, it was provided:'Notwithstanding anything stated above the Owner reserves the right to assess the Bidders capability and capacity to perform, should the circumstances warrant such an assessment, in the overall interest of the owner.' Pursuant to the invitation, the appellant-Maharashtra State Electricity Board received tenders from eleven bidders including M/s. IVR Construction Ltd. and M/s. Raunaq International Ltd., who are the two contestants before us. After screening of the bids a note was submitted by the Technical Director of the Maharashtra State Electricity Board for the consideration of the Board of Directors. The note stated that out of the offers received, four offers were from tenderers who qualified as per the qualifying criteria. M/s. IVR Construction Ltd., Hyderabad was stated to be one of the four such offerers. The note also mentioned that two offerers which included M/s. Raunaq International Ltd., though not meeting the qualifying requirements, had done CW piping for 210 MW units. M/s. IVR Construction Ltd. were recommended by the Technical Director for the placement of the order. The said company, however, fell short of the requisite experience by one year. The note also stated that the offer of M/s. Raunaq International Ltd. was the most competitive, being Rs. 43,28,316/- less than the price quoted by M/s. IVR Construction Ltd.
(3.) In this connection, it is pointed out by the Maharashtra State Electricity Board that M/s. Raunaq International Ltd. have designed, fabricated and commissioned M.S. pipes of 2000 mm diameter buried underground, but for a distance less than 3 kms. They also have requisite experience of doing such work for thermal power units of 210 MWs. They have more than 2 years experience in this work.;