BIRLA GTM ENTERPOSE LTD Vs. UNION OF INDIA
LAWS(DLH)-2011-1-34
HIGH COURT OF DELHI
Decided on January 31,2011

Birla Gtm Enterpose Ltd Appellant
VERSUS
UNION OF INDIA Respondents




JUDGEMENT

- (1.)The Petitioners Birla GTM-Entrepose Limited ('BGEL'), and its Ex-Chairman, Ex-Director and Chief Executive Officer have filed this petition challenging an order dated 6th October, 2008 issued by the National Highways Authority of India (NHAI), Respondent No.2 banning/black listing BGEL from participating or bidding for projects of/or to be undertaken by NHAI either by itself or in association with any person or entity for a period of five years from the date of the order. Background facts
(2.)The Petitioners state that BGEL is a joint venture company (JV) incorporated under the Companies Act, 1956 pursuant to a JV agreement dated 18th January, 1990 between National Engineering Industries Limited and GTM Entrepose, France (GTME). The Petitioners state that the said JV agreement provided that technical assistance of specialist subsidiaries of GTME would be available to BGEL through technical assistance contracts to be entered into on a case by case basis. It is stated that BGEL was formed with 40% equity participation of GTME. It is stated that at the relevant point of time, Entreprise Jean Lefebvre, France (EJL) was a subsidiary of GTME and specialized in road construction works.
(3.)It is stated that the Public Works Department, Rajasthan on behalf of the Ministry of Road Transport and Highways ("MRTH"), Government of India, Respondent No. 1 herein, awarded to BGEL the contract of carrying out the construction of works in a portion of the Delhi-Jaipur National Highway 8 ("NH 8") in the year 1992 (hereafter referred to as 'the ADB-II contract'). It is stated that BGEL bid for the contract as a JV company. The contract involved construction of additional two lanes and strengthening of the existing carriageway from KM 162.5 to KM 231 on NH 8. According to the Petitioners, the ADB-II contract, valued at Rs.80 crores, was performed to the satisfaction of the NHAI.


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