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Jharkhand High Court

Amr Dev Prabha Through Its Power Of ... vs The Union Of India Through The Secretary ... on 4 November, 2015

Author: Shree Chandrashekhar

Bench: Shree Chandrashekhar

                                           1

          IN THE HIGH COURT OF JHARKHAND AT RANCHI
                     W.P.(C) No. 3685 of 2015

      AMR - DEV PRABHA, Hyderabad through its power of attorney 
      holder Mithilesh Kumar Singh, Dhanbad ...  ...      Petitioner 
                                  Versus
      The Union of India through the Secretary, Ministry of Coal, New 
      Delhi  & Ors.                         ...  ...  Respondents
CORAM: HON'BLE MR. JUSTICE SHREE CHANDRASHEKHAR
                                 ­­­­­
      For the Petitioner   : Mr. Ajit Kumar Sinha, Sr. Advocate
                             Mr. Ajit Kumar, Sr. Advocate
                             Mrs. Aprajita Bhardwaj, Advocate
      For Respondent­BCCL : Mr. P.S. Narasimha, ASGI
                             Mr. Amit Sharma, Advocate
                             Mr. A.K. Mehta, Advocate
      For Respondent 6 & 7 : Mr. Bineet Kumar, Advocate
      For Respondent No. 8 : Mr. Ratan Kumar Singh, Advocate
                             Mr. J.K. Choudhary, Advocate       
                                 ­­­­­


12/04.11.2015

  Mr.   P.S.   Narasimha,   the   learned   Additional   Solicitor  General of India submitted that the reverse bidding concluded on  05.05.2015 and the respondent no. 8 was declared L­1 however,  the petitioner did not even made a protest rather, it participated  in the e­auction and, after resumption, it submitted as many as 12 bids. Having not taken a single step objecting to the alleged  technical failure and having waited for more than 3 months, the  petitioner's writ petition is nothing but an abuse of the process of  the   Court.   In   the   writ   petition,   the   petitioner   has   not   given   a  truthful   narration   of   the   facts   and,   after   resumption   of   the e­auction it voluntarily participated even without prejudice to its  right   and   therefore,   no   indulgence   should   be   granted   in   the  present  proceeding. The  learned Additional Solicitor General of  India refers to Section 8 of the bid document which deals with  appointment   of   Independent   External   Monitor/Monitors   and  submits   that   the   report   submitted   by   the   Monitor   would   be   a 2 non­binding   recommendation.   Referring   to   Clause   9(xii)   and  Clause 9(xiii) of the bid document, the learned ASGI submits that  a   complete   freedom   is   given   to   the   service   provider   to   ensure  smooth and uninterrupted system at its end. 

2. In the counter­affidavit, the respondent­M/s BCCL has  averred   that   the   reverse   bidding   was   paused   at   13.03   hrs.   on  05.05.2015 due to a system failure with the service provider. A  copy of the e­mail sent by the service provider has been annexed  with   the   counter­affidavit   vide   Annexure­A.   The   e­mail   dated  05.05.2015 would disclose that it was sent at 15.02 p.m. whereas,  the e­auction had already resumed at 2:30 p.m. The information  given to M/s BCCL was that auction got interrupted at 1:03 p.m.  and "got closed". It further records that the service provider was  in consultation with the CMD office. The counter­affidavit filed on  behalf of respondent no. 8 is at variance with the stand taken by  the   respondent­M/s   BCCL   in   its   counter­affidavit.   The  Independent   External   Monitor   namely,   Sri   Naresh   Chaturvedi,  I.A.S. Retd. has also recorded as under:

"The   complainant   also   drew   our   attention   to  the   letter   dated   05.05.2015   of   M/s   R.K.  Transport   Co.   sent   through   e­mail   at   13.36  hours   stating   that   the   auction   suddenly  stopped   at   1.00   P.M.   From   this   letter   it   also  appears that M/s R.K. Transport Company was  not   always   logged   in.   The   statement   of   M/s  R.K. Transport Company regarding stopping of  the auction at 1.00 P.M. is at variance with the  time   shown   in   the   snapshots  annexed by  the  complainant   which   shows   that   the   system  worked   till   13.03.58   hrs   on   05.05.2015.   The  claim   of   M/s   R.K.   Transport   Company   is  therefore not correct."

3. The   Independent   External   Monitor   has   noticed   that  inspite of direction given a copy of the report was not submitted  by the respondent­M/s BCCL in the present proceeding and that  was the reason he provided a copy of the report to the petitioner. 

3

The   respondent­M/s   BCCL   has   filed   a   copy   of   the   report   of  another   Independent   External   Monitor   namely,   Dr.  L.C.   Sanghi,  I.A.S.   Retd.   The   said   Independent   External   Monitor   has   also  recorded   a   finding   in   paragraph   no.   31   of   his   report   that   the  screenshots, copies of which were produced by the petitioner, are  certainly   not   fabricated   however,   he   has   indicated   that   these  screenshots  do not  prove  that there  was no interruption in  the  auction process at the service provider's end. 

4. Initially,   the   application   filed   on   behalf   of   the  petitioner­company   being   I.A.   No.   5185   of   2015   seeking   an  independent enquiry in the matter was dismissed vide order dated  09.09.2015   on   the   ground   that   the   petitioner   has   already  approached   Independent   External   Monitor.   Thereafter,   the  petitioner filed another I.A. No. 5748 of 2015 to challenge the  decision   taken   by   the   respondent­M/s   BCCL   approving   the  delayed submission of Bank Guarantee by the respondent no. 8.  The   said   application   was   also   dismissed   vide   order   dated  06.10.2015. The said order was challenged by the petitioner in  L.P.A. No. 603 of 2015 which was disposed of recording as under:

"During   course   of   arguments,   Mr.   P.S.  Narsimha,   learned   Senior   Advocate,   on  instructions   of   Mr.   Anoop   Kumar   Mehta,  learned   Advocate,   makes   a   statement   at   the  Bar, that he will instruct respondent No. 4 to  keep   the   order   dated   22 nd  September,   2015,  whereby the delayed bank guarantee submitted  by respondent No.8 in whose favour the letter  of allotment (LOA) is awarded, in abeyance till  the   final   disposal   of   the   main   writ   petition  being   W.P.(C)   No.   3685/2015.   Mr.   Narsimha,  the learned Senior Advocate, submits that even  otherwise, it has no reference to the merits of  the main writ petition."

5. The   aforesaid   proceeding   taken   in   the   present   writ  petition would disclose that the application filed by the petitioner  was  dismissed  mainly on  the ground that  there  is no sufficient  4 assertion   by   the   petitioner   in   the   writ   petition.   However,  subsequently, both the parties themselves have relied on and have  filed report of two Independent External Monitors, one of which  has   categorically   held   that   the   procedure   adopted   was   not  transparent. The another Monitor has also found that the copies  of   screenshots   produced   by   the   petitioner   are   not   fabricated.  Though, the subsequent events may not be of much relevance at  this stage however, the same require to be noticed. The Letter of  Intent   (LoI)   to   respondent   no.   8   was   issued   on   30.05.2015  however, Bank Guarantee was furnished by respondent no. 8 only  on   25.08.2015   though,   one   of   the   conditions   of   the   LoI   dated  30.05.2015   was   submission   of   security   deposit   within   28   days.  Before   the   Independent  External Monitor,  the  General Manager  (CMC), BCCL stated that the respondent no. 8 has started work.  In  the  proceeding before this Court  dated 16.10.2015, the said  General   Manager   (CMC),   BCCL   made   a   statement   that   the  respondent no. 8 was provided site for preparation of site office,  camp office, workshop etc. Though the respondent­M/s BCCL has  filed as many as two supplementary counter­affidavits, it has not  been disclosed by it the exact reason of the system failure. There  is   no   definite   assertion   when   communication   between Tata   Telecommunication,   the   service   provider-respondent no. 6 and the respondent nos. 4 and 5, took place. The copy of e­mail sent by respondent no. 6 to M/s BCCL disclosed that the e­mail was forwarded on 15.02 p.m.  however, in the meantime,  reverse   bid   has   already   commenced   at   2.30   p.m.   In  "Maria   Margarida   Sequeira   Fernandes   Vs.   Erasmo   Jack   de   Sequeira"  

(2012) 5 SCC 370 the Hon'ble Supreme has observed as under:
38.  "Certainly,   the   above   is   not   true   of   the  Indian judicial system. A Judge in the Indian  system has to be regarded as failing to exercise  its   jurisdiction   and   thereby   discharging   its  judicial   duty,   if   in   the   guise   of   remaining  neutral,   he   opts   to   remain   passive   to   the  5 proceedings before him. He has to always keep  in   mind   that   "every   trial   is   a   voyage   of  discovery in which truth is the quest". In order  to bring on record the relevant fact, he has to  play an active role; no doubt within the bounds  of the statutorily defined procedural law."

6. The respondent nos. 6 and 7 have already appeared in  the present proceeding. The learned counsel for the respondent  nos. 6 and 7 seeks time for filing response to the writ petition.  The   learned   ASGI   also   indicates   that   the   respondent no. 6 should file its affidavit. 

7. Considering   the   aforesaid   facts,   I   am   of   the   opinion  that   the   respondent­M/s   BCCL   should   produce   all  communications and disclose the method adopted for e­auction to  prima­facie satisfy this Court on the issues of fair and transparent  procedure adopted for e­auction. The affidavit filed on behalf of  respondent­M/s   BCCL   should   also   disclose   whether   after  interruption at 13:03 p.m., any officer of M/s BCCL had granted  permission  for  resumption  of e­auction and whether M/s BCCL  alone can start the system after it "got stopped". In the aforesaid  facts, I am inclined to grant one opportunity to respondent­M/s  BCCL   to   produce   all   relevant   documents   disclosing   all   relevant  facts. 

8. At the request of the learned counsel appearing for the  parties,   three   weeks'   time   is   granted   for   filing   response   and  requisite documents. 

9. Post the matter on 01.12.2015. 

  

(Shree Chandrashekhar, J.) Manish/N.A.F.R.