Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2015 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2717 - HC - Indian LawsExtension of time for furnishing performance bank guarantee - validity of LOI issued by PNGRB in favour of IOAGPL - disqualification of IOAGPL is sought alongwith a declaration that the petitioner (SSL) be declared as the successful bidder. Held that: - A higher performance bank guarantee was in public interest as it was a much greater 'guarantee' that the gas network for Ernakulam would get set-up in time and as per the stipulated parameters. Furthermore, the second option of cancelling the tender would set back the project in time which would also not be in public interest - the PNGRB cannot be faulted in going by the first option as it was in public interest and was also not in contravention of the tender conditions. PNGRB has the option to cancel the proposed authorization in case the Performance Bond / Bank Guarantee is not furnished within the specified time. But, the other side of the coin is that PNGRB need not cancel the proposed authorization and may extend the time for furnishing the Performance Bank Guarantee. Thus, extension of time for furnishing the Performance Bank Guarantee is not contrary to the tender terms but is, in fact, an option available to PNGRB. It chose that option in public interest and therefore the grant of extension of time cannot be faulted and the petitioner cannot claim any right to seek quashing of this action on the part of PNGRB, particularly when the petitioner lost the race at the LOI stage and there was nothing in the tender terms barring the grant of extension of time to the successful entity - IOAGPL. The PNGRB is free to accept the Performance Bank Guarantee for ₹ 4248 crores submitted by IOAGPL and to grant the authorization in its favour in terms of the 2008 Regulations and the tender conditions - petition dismissed.
|