ABB ABL LIMITED Vs. NATIONAL THERMAL POWER CORPORATION
LAWS(ALL)-1999-11-116
HIGH COURT OF ALLAHABAD
Decided on November 03,1999

ABB ABL LIMITED Appellant
VERSUS
NATIONAL THERMAL POWER CORPORATION Respondents

JUDGEMENT

G.P.Mathur, Yatindra Singh, JJ. - (1.) This is a writ petition for a direction to the National Thermal Power Corporation Limited (NTPC) to rescind the decision taken by it in awarding the contract of Steam Generator Package for Talcher Super Thermal Power Project to Bharat Heavy Electrical Limited (BHEL) and to consider the case of M/s. Combustion Engineering Inc., (CE inc.) with ABB ABL Limited as the Indian assignee for granting of the said contract.
(2.) NTPC floated a global tender on 15th of December. 1997 for the supply and installation of (i) Steam Generator (SG) Package and (ii) Steam Turbine Generator (STG) Package as per the brief particulars specified in the bidding documents. In this writ petition, we are concerned with the supply and installation of Steam Generator (SG) Package only. There were three bidders and the bids were opened by NTPC on 2nd of December, 1998. Subsequently all bidders were given an opportunity to rectify the inconsistencies and were asked to submit fresh bids. This time only two parties, namely, CE Inc. and BHEL submitted their bids. They are respondent Nos. 4 and 5 in this writ petition. The bids were examined by a tender committee comprising of experts in the field. The bid of CE Inc. was found to be non-responsive and decision was taken to award the contract to BHEL. A letter of intent was issued to BHEL on 9th August, 1999 with some conditions. BHEL was to give its acceptance by 31st August, 1999. We are informed that BHEL has given such consent.
(3.) CE Inc. is a foreign bidder. Under the special condition of contract, a foreign bidder was to propose an Indian assignee. ABB ABL Limited (petitioner No. 1) is its Indian assignee. Petitioner Nos. 2 to 6 are the registered trade unions of ABB ABL Limited. Petitioner Nos. 2 to 6 filed a writ petition in the Calcutta High Court on 31st August, 1999 against the decision of NTPC to award the contract to BHEL. In this writ petition, initially ABB ABL Limited was a respondent but during the pendency of the same. ABB ABL Limited was transposed as a petitioner. The Calcutta High Court on the same day (31.8.1999) granted an ex parte interim order maintaining status quo with regard to award of contract to BHEL. This interim order was continued and ultimately the learned single Judge of the Calcutta High Court dismissed the writ petition on the ground that it did not have territorial jurisdiction but passed the following order : "In view of that this interim order which has been passed is vacated, however no order as to costs. Accordingly this writ petition is also dismissed. Stay of the operation of the order as asked for, is granted for three weeks. Xerox certified copy of this order if applied for by the parties be supplied expeditiously on usual terms.";


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