The Bombay High Court Monday dismissed the plea by Adani Ports and Special Economic Zone (SEZ) Limited challenging the disqualification of its bid for an upgrade of the container terminal in Navi Mumbai by the Board of Trustees of Jawaharlal Nehru Port Authority (JNPA).
A division bench of Chief Justice Dipankar Datta and Justice MS Karnik dismissed the plea with Rs 5 lakh imposition cost observing that "There is Jo merit in the contentions of the petition. Hence the petition is dismissed."
Adani Ports had deposited more than Rs 4 lakh with JNPA at the time of submitting its bid. The court has asked the JNPA to retain the amount and directed the petitioners to deposit the remaining amount.
The Board had issued a tender, a global invitation of Request For Qualification (RFQ) calling for application from interested parties for the upgrade, operation, maintenance, and transfer of Jawaharlal Nehru Port Container Terminal, through a public-private partnership (PPP) for a concession period of 30 years.
Adani Ports, the multi-location port developer and operator, termed the disqualification of its bid as "illegal and in violation of fundamental and legal rights" and challenged the same before the HC.
The JNPA filed an affidavit in reply opposing the plea stating that the employer of the project or the Authority is the best body to understand and appreciate tender requirements and whether the bidder satisfies the tender conditions.
The Authority said that even if the court finds total arbitrariness or tender being granted [in a] mala fide manner, still it should refrain from interfering in the grant of tender, however, can relegate the parties to seek damages for the wrongful exclusion rather than to stay or stop the execution of the contract.
The Authority sought dismissal of the plea stating that the court, which does not have the expertise to examine “terms and conditions of present-day economic activities of the state,” cannot intervene in the plea.
“The project involves financial implication and investment of over Rs 827 crore. If the tender is delayed, operations at JN Port container terminal will come to a complete halt, and the port productivity, berth productivity and service to the trade will also get affected,” it said.
While imposing a cost of Rs 5 lakh on Adani Ports and Special Economic Zone, the Bombay High Court (HC) on Monday dismissed its plea challenging the disqualification of its bid for an upgrade of the container terminal in Navi Mumbai by the Board of Trustees of Jawaharlal Nehru Port Authority (JNPA).
“The decision of JNPT to disqualify the petitioner (Adani) after having once declared it as qualified, to our mind, conforms to the settled law that JNPT was bound by the tender terms and conditions, which amounts to a representation to the public, and that any deviation would have amounted to a fraud on the public,” observed a division bench of Chief Justice Dipankar Datta and Justice MS Karnik.
The judges imposed the cost observing that it had brought an unmeritorious case to the court.
"Since the petitioner brought an unmeritorious case for adjudication, it shall bear the costs of this proceeding, assessed at Rs. 5,00,000,” said HC.
The court was informed that Adani had remitted to JNPA an amount of Rs 4,24,800, which had not been forfeited by the post authority. Permitting JNPA to retain the amount and Adani was directed to pay the balance amount of Rs 75,200 within a month from today.
The Board had issued a tender, a global invitation of Request For Qualification (RFQ), calling for applications from interested parties for the upgrade, operation, maintenance, and transfer of Jawaharlal Nehru Port Container Terminal, through a public-private partnership (PPP) for a concession period of 30 years.
Adani Ports, the multi-location port developer and operator, termed the disqualification of its bid as “illegal and in violation of fundamental and legal rights” and challenged the same before the HC.
The JNPA filed an affidavit in reply opposing the plea stating that the employer of the project or the Authority is the best body to understand and appreciate tender requirements and whether the bidder satisfies the tender conditions.
The JNPA said that even if the court finds total arbitrariness or tender being granted [in a] mala fide manner, still it should refrain from interfering in the grant of tender. However, it can relegate the parties to seek damages for the wrongful exclusion rather than to stay or stop the execution of the contract.
The JNPA sought dismissal of the plea stating that the court, which does not have the expertise to examine “terms and conditions of present-day economic activities of the state,” cannot intervene in the plea.
“The project involves financial implication and investment of over Rs 827 crore. If the tender is delayed, operations at JN Port Container Terminal will come to a complete halt, and the port productivity, berth productivity and service to the trade will also get affected,” it said.
