News By/Courtesy: K. Pramod Kumar Reddy | 08 Jul 2022 10:41am IST

HIGHLIGHTS

  • The national highway authority of India has taken a decision to annul the bidding process for the government projects.
  • The Supreme Court has upheld the NHAI decision to annul the bidding process.
  • This came into the view of Supreme Court, when an appeal was filed by the Malaysian based company, IJM Corporation.

An appeal was filed before the Supreme Court of India by a Malaysian-based company, IJM Corporation.

The appeal was filed by the National Highway Authority of India. The contents of the appeal were over the recent decision taken by the National Highway Authority of India over the annulment of the bidding process over the Government projects. The National Highway Authority of India has made a recent decision on the annulment of the bidding process over the government projects. After this decision was ruled out and made its way onto the website of the National Highway Authority of India, this decision was challenged by a sole bidder in the National Highway Authority of India’s tender on making the Kagal-Satara section of the national highway route number 48 in Maharashtra into a six-lane road.

The company IJM Corporation based in Malaysia has emerged as the sole bidder in the tender for making the NH48 into a six-lane road. The appeal was first filed in the Delhi High Court, because, the National Highway Authority of India has acted arbitrary and the decision taken by them is illegal. The company said, even after it has satisfied all the requirements under the RPF (Request for Proposal) and the National Highway Authority of India’s policy circular. The company challenged the decision of the National Highway Authority of India by saying, the National Highway Authority does not have the discretion to reject bids and cannot act against its guidelines the company also claimed that, the National Highway Authority has deprived the legal and constitutional rights of the company. But on the 12th of May, the Delhi High Court dismissed the company’s petition and passed its final verdict.

The company then filed an appeal in the Supreme Court of India. The bench led by Justice Indira has rejected the company’s appeal stating that National Highway Authority is entitled to safeguard its financial interests and keep its confidentiality. There is no right to privy for a foreign at the decision that is taken by the National Highway Authority of India. The board of the National Highway Authority has decided not to award the project to IJM and has been directed to restructure and has decided to start a rebidding on the project. The reason for the non-approval of the project to the IJM Corporation by the National Highway Authority was that the expected premium rate by the board was 10.77% and since the IJM Corporation was the sole bidder for this project and has decided to annul the bidding process. The Supreme Court has upheld the decision of the National Highway Authority and has decided the case in favour of the National Highway Authority.

Section Editor: KADAM HANS | 08 Jul 2022 12:34pm IST


Tags : #SupremeCourt, #Infrastructure, #NHAI, #Appeal

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