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SC refuses to restore firm's contract for sewage plant at Bellandur lake

Last Updated 14 August 2017, 21:07 IST

The Supreme Court on Monday refused to interfere with cancellation of a contract for building a sewage treatment plant for cleaning the Bellandur lake in Bengaluru.

The court also questioned a company’s move to challenge the cancellation of contract awarded to it. “How can your client expect the Supreme Court to intervene and determine whom should a contract be allotted to,” a bench of Justices Ranjan Gogoi and Navin Sinha asked senior advocate Salman Khurshid, appearing for GSJ Envo Ltd. The company deals in construction, operation and maintenance of sewage treatment plants.

The company, also represented by advocate Sanjay M Nuli, argued that the contract was awarded to it and a letter of acceptance issued on February 21, 2014.

But the chief minister cancelled the contract on October 18, 2014, on the basis of a note prepared by the chief secretary following adverse media reports and considering “incorrect estimation” of the project, the counsel contended. The company claimed that the contract was approved by the authorities as well as a committee of experts. It was, however, rescinded on the recommendation of the Chawla committee.

Senior advocate S Naganand, representing the Bangalore Water Supply and Sewerage Board (BWSSB), submitted that a notification inviting fresh bids had been issued and the company was free to participate in it.

In view of the submissions, the court declined to interfere with the high court judgement of June 30, 2017. The high court had overturned the single-bench order that quashed the cancellation order and restored the contract to the company.

“We do not find any legal and valid ground for interference. The special leave petitions are accordingly dismissed. However, it will be open for the petitioner to take part in the fresh process of bidding, if it is so advised and is so inclined,” the bench said.

The company had won the contract from the BWSSB for building intermediate sewage pumping stations at Koramangala Sports Complex at a cost of Rs 110 crore but the committee subsequently found its bid was on a higher side. The estimated cost should be around Rs 80 crore, the committee felt.

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(Published 14 August 2017, 21:04 IST)

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