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Delhi High Court - Orders

Sarda Energy And Minerals Limited vs Steel Authority Of India Limited & Ors on 1 July, 2024

Author: Sanjeev Narula

Bench: Sanjeev Narula

                                    $~ 6
                                    *           IN THE HIGH COURT OF DELHI AT NEW DELHI
                                    +           W.P.(C) 8691/2024
                                                SARDA ENERGY AND MINERALS LIMITED                                                    ..... Petitioner
                                                                                      Through:                 Mr. Prashanto Sen, Senior Advocate
                                                                                                               with Mr. Sidhartha Sharma, Mr.
                                                                                                               Arjun Asthana and Ms. Shalini Basu,
                                                                                                               Advocates.

                                                                                      versus

                                                STEEL AUTHORITY OF INDIA LIMITED & ORS.
                                                                                                                                  ..... Respondents
                                                                                      Through:                 Mr. Sharat Kapoor, Mr. Shubh
                                                                                                               Kapoor and Ms. Bhavyah Garg,
                                                                                                               Advocates for R-1.
                                                                                                               Ms. Shweta Bharti, Ms. Yashodhara
                                                                                                               and Ms. Darshita Sethia, Advocates
                                                                                                               for R-2.
                                                                                                               Mr. Nishant Gautam, CGSC with Ms.
                                                                                                               Sanjana Mehrotra and Mr. Mayank
                                                                                                               Sharma, Advocates for R-3.

                                                CORAM:
                                                HON'BLE MR. JUSTICE SANJEEV NARULA
                                                             ORDER

% 01.07.2024 CM APPL. 35804/2024(u/S 151 of CPC on behalf of Petitioner)

1. The present petition assails order dated 14 th June, 2024 passed by Respondent No. 2, suspending the operations of Petitioner-company on Government e-marketplace for a period of 365 days due to non-payment of W.P.(C) 8691/2024 Page 1 of 4 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2024 at 21:09:25 transaction charges/ annual milestone charges.1 On 24th June, 2024, after hearing the preliminary submissions of the parties, an interim order was passed by the Court, staying the operation of the impugned order, subject to the payment of transaction charges by the Petitioner. Additionally, the Petitioner was permitted to participate in the tender bearing bid No. GEM/2024/R/344556. The relevant portion of the said order reads as follows:

"12. Issue notice.
13. Notice is accepted by the learned counsel appearing for the respondents.
14. Let reply be filed within a period of four weeks. Rejoinder, if any, be filed within two weeks, thereafter.
15. Subject to deposit of the Transaction Charges by the petitioner within a period of three days, the impugned order dated 14th June, 2024, shall remain stayed, till the next date of hearing.
16. At this stage, learned Senior Counsel appearing for the petitioner draws the attentions of this Court to Annexure P-25, wherein, the petitioner has received a communication from GeM portal, with respect to a contract from the buyer, who has shown interest in the submission of bid no. GEM/2024/R/344556, submitted by the petitioner. The petitioner was informed of the interest of the buyer, provided the petitioner matches the L-1 bid. However, due to the current situation, the petitioner is under uncertainty, as to whether the contract will even be issued to the petitioner.
17. The communication dated 15th June 2024, received by the petitioner from GeM portal, reads as under:
"Dear Sir/Madam, This is to inform you that buyer has shown interest in your submission for Bid Number GEM/20024/R/344556, provided you match L1 price for this bid. You are requested to accept or reject the proposal by 18-06- 2024 12: 46 PM Regards, Team GeM"
1
"impugned order."
W.P.(C) 8691/2024 Page 2 of 4

This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2024 at 21:09:25

18. Learned Senior Counsel further submits that the petitioner has already matched the bid of the L-1.

19. Considering the submissions made before this Court, it is directed that the petitioner-company shall be allowed to participate in the aforesaid tender process, bearing bid No. GEM/2024/R/344556.

20. Learned Senior Counsel appearing for the petitioner further submits that there are other tenders, which are floated in the GeM portal, and the petitioner may be allowed to the participate in the same.

21. Accordingly, it is directed that in case there is any such tender, which is floated by the GeM portal, in which the petitioner wishes to participate, the petitioner is liberty to move an appropriate application before this Court.

2. Petitioner submits that they have complied with the afore-noted directions and deposited an amount of Rs. 42,20,624/- towards Transaction Charges and Rs. 11,800/- towards Annual Milestone Charges. Copies of proof of deposit are enclosed with the present application.

3. Through this application, Petitioner seeks permission to participate in the tender floated by NMDC Steel Limited bearing No. GEM/2024/B/5074340 on Respondent No. 2-portal, in terms of liberty granted in paragraph No. 21 of the order dated 24th June, 2024.

4. Issue notice. Counsel mentioned in the appearance above accept notice. Counsel for Respondent No. 2 contends that in terms of their Incident Management Policy, the Petitioner cannot be permitted to participate in the tenders, till such time the dispute is resolved and the Incident Report is closed.

5. Reply to the application, if any, be filed within three weeks from today. Rejoinder thereto, if any, be filed within two weeks thereafter.

6. Considering the fact that this Court has already allowed the Petitioner to participate in one of the tenders, in the prima facie opinion of the Court, the said relief should also be extended in respect of tender bearing No. W.P.(C) 8691/2024 Page 3 of 4 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2024 at 21:09:26 GEM/2024/B/5074340.

7. Needless to say, the directions issued by this Court are without prejudice to the rights and contentions of the parties, and the stand taken by Respondent No. 2., which shall be considered at the stage of final adjudication.

8. Accordingly, it is directed that Petitioner be permitted to participate in the tender bearing No. GEM/2024/B/5074340. Such participation shall be without prejudice to rights and contentions of the parties.

9. List for further consideration on 23rd August, 2024.

W.P.(C) 8691/2024

10. List on the date already fixed, i.e., 23rd August, 2024.

SANJEEV NARULA, J JULY 1, 2024 d.negi W.P.(C) 8691/2024 Page 4 of 4 This is a digitally signed order.

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2024 at 21:09:26