IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN TUESDAY, THE 25TH OCTOBER 2011 / 3RD KARTHIKA 1933 WA.No. 1574 of 2011() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.26368/2011 Dated 14/10/2011 .................... APPELLANT(S)/ PETITIONER IN W.P. -------------------------------- HINDUSTAN STEEL WORKS CONSTRUCTION LTD., N.S.C.BOSE BUILDING, 15TH FLOOR, 12, MAHATMA GANDHI ROAD, BANGALORE-560 001, REPRESENTED BY ITS EXECUTIVE DIRECTOR MR.V.K.TYAGI. BY ADV. SRI.DEVAN RAMACHANDRAN SRI.K.M.ANEESH RESPONDENT(S)/ RESPONDENTS IN W.P. ---------------------------------- 1. ENGINEERS INDIA LIMITED, ENGINEERS INDIA APARTMENTS, A1-BLOCK, #211, MAIN ROAD, SHANATHI COLONY, ANNA NAGAR, CHENNAI-600 040, REPRESENTED BY ITS SENIOR MANAGER(CONTRACTS & PURCHASE) 2. BHARAT PETROLEUM CORPORATION LTD., BHARAT BHAVAN, 4 & 6 XURNIMBHOY ROAD, BELLARD ESTATE, MUMBAI-400 001, REPRESENTED BY ITS CHAIRMAN AND MANAGING DIRECTOR. 3. BHARAT PETROLEUM CORPORATION LIMITED, KOCHI REFINERY, POST BAG NO.2,AMBALAMUGAL-682 301. REPRESENTED BY ITS EXECUTIVE DIRECTOR. MR.E.K.NANDAKUMAR, SC FOR HPCL THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 25/10/2011, ALONG WITH WPC NO. 26368 OF 2011 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, Ag.CJ. & P.S.GOPINATHAN, J. .................................................................... W.A. No.1574 & WP(C) No.26368 of 2011 .................................................................... Dated this the 25th day of October, 2011. J U D G M E N T Ramachandran Nair, Ag.CJ. The dispute is essentially among three Public Sector Companies. One is the awarder and the other two are contesting parties for the award of a construction contract. 2. The petitioner/appellant, a Public Sector Undertaking, was an applicant along with other applicants including M/s.Bridge and Roof Co.(I) Ltd., which is also a Public Sector Undertaking under Government of India. M/s.Bharat Petroleum Corporation Limited, the awarder, has appointed M/s.Engineers India Ltd., another Government of India undertaking, to evaluate the tenders. The petitioner/appellant was disqualified because it had huge accumulated loss and it's net worth is not positive, which only will entitle it for being considered for the award of contract. W.A.No.1574 & WP(C) No.26368/2011 2 However, petitioner/appellant's case is that it's net worth should not be a consideration for disqualifying them as it is a Public Sector Undertaking under the control of Government of India. Learned Standing Counsel appearing for the BPCL submitted that the party found eligible is M/s.Bridge and Roof Co.(I) Ltd., which is a Government of India company and the contract is awarded to them on 22/10/2011. 3. The appellant's case is that the award of contract is after filing of the Writ Appeal before this Court. However, we notice that it is only after the learned Single Judge declining to grant interim relief that is stay of the award of contract, the Company proceeded with the award of contract though the same was issued after the Writ Appeal was filed against interim order. 4. After hearing both sides, we do not find any ground to interfere with the award of contract because the awardee is found eligible. So far as the challenge made by the appellant is concerned, we do not think it is desirable or healthy to W.A.No.1574 & WP(C) No.26368/2011 3 encourage competition between two public sector companies that too for award of contract for another public sector company, all under the control of Government of India. All Public Sector Undertakings are funded by Government and the beneficiary is also the Government. Objectives of Public Sector Companies are common and so much so, we do not think it fair or just to encourage litigations on matters like this. We therefore do not propose to consider the correctness of the findings on disqualification of the appellant for being considered. Consequently, this Writ Appeal and WP(C) are devoid of any merit and the same are dismissed. (C.N.RAMACHANDRAN NAIR, ACTING CHIEF JUSTICE) (P.S.GOPINATHAN, JUDGE) jg