HC disposes off appeal by TANGEDCO; modifies single judge's

The Madras High Court today disposed of an appeal by Tamil Nadu Generation and Distribution Corporation Limited while modifiying a single judge's order, directing it to give personal hearing to a Chinese firm-led consortium before finalizing tenders for the Rs 9,207-crore Supercritical Power Projects at Ennore Thermal Power Station.
A division bench, comprising Justices N Paul Vasanthakumar and K Ravichandrababu, concurred with the submissions of Advocate General A L Somayaji, appearing on behalf of TANGEDCO while disposing of the appeal.
"When the consortium has not opted for personal hearing and the Transparency in Tenders Act and the rules nowhere contemplate affording of personal hearing to the person who is objecting, the consortium cannot demand personal hearing as a matter of right," the bench said.

It said all calrifictions sought by the consortium should be clarified by TANGEDCO and these should be sent to the consortium, as well as BHEL, another tenderer.
"After considering the clarifications, TANGEDCO shall pass an order as directed by the single judge."
The bench made it clear that if an opportunity of personal hearing is afforded to the consortium, the same should be given to BHEL also.

It also recorded submissions by counsel of the consortium that they had some additional material to prove the disqualification of BHEL and granted one week time to submit the additional documents to TANGEDCO, along with a copy of the present order passed by the bench.

The matter relates to the contract for Rs 9,207-crore 2x660 MW Ennore SEZ supercritical thermal power project for which the Chinese led CSEPDI-TRISHE consortium and BHEL were the bidders.
The consortium filed a petition saying BHEL should have been disqualified from the bidding process as it had delayed power projects worth Rs 27,000 crore involving 7,300 MW in Tamil Nadu. The consortium had made representations to TANGEDCO in June and July this year, describing deficiencies of BHEL in executing power projects in Tamil Nadu.
As TANGEDCO did not pass any orders and apprehending that the tender may be awarded to BHEL without considering their representations, they filed a petition praying for a direction not to finalise them without considering their representation.

The single judge had said finalisation of the bid/tender cannot be done till TANGEDCO authorities consider and pass orders on the representations after affording an opportunity of personal hearing to the authorized representative of the consortium, and communicate it to them.