Mumbai: The Bombay High Court has refused to halt the fresh tender process for the appointment of a toll operator for the Bandra-Worli Sea Link, dismissing a petition that challenged the cancellation of an earlier tender. The division bench of Justices Advait Sethna and Sandesh Patil, hearing the matter on Friday, emphasized that the tender is for a project of significant public interest, describing the Bandra-Worli Sea Link as a pivotal infrastructural milestone for Mumbai city.
Petition by Sahakar Global Ltd
Sahakar Global Ltd had approached the vacation court seeking an ad interim stay on the April 29 tender cancellation order and the subsequent email communication from the urban development department informing the company about the cancellation. The company also sought to restrain the Maharashtra State Road Development Corporation (MSRDC) and MSRDC Sea Link Ltd (MSLL) from proceeding with or acting upon the fresh tender.
Arguments by Senior Advocate Soli Cooper
Senior advocate Soli Cooper, representing Sahakar Global, argued that the cancellation order and communication were arbitrary, unreasoned, and therefore bad in law. He pointed out that the order merely cited an "administrative reason" for the rejection without providing any detailed justification. Cooper further alleged that MSRDC and MSLL intended to favor a particular party or entity, which led to the cancellation of the tender.
Response by MSRDC
Senior advocate Venkatesh Dhond, appearing for MSRDC, denied the allegations. He confirmed that Sahakar Global was the highest bidder and had participated in negotiations for revision of contract rates, submitting a revised proposal on February 20. Dhond justified the cancellation by stating that the respondents acted in accordance with a clause in the tender terms that gives MSLL the right to reject any offer or bid, or to annul or suspend the tender process without assigning any reason.
Court's Prima Facie View
The judges expressed a prima facie view that the impugned order did not warrant an ad interim stay at this stage, considering the contractual clause. They noted that the rejection of the tender occurred before the contract was awarded to Sahakar Global. The bench observed that the fresh tender process was already underway, with bids to be submitted by May 29.
Liberty to Participate in Fresh Tender
The court granted Sahakar Global "full liberty" to participate in the fresh tender process, without prejudice to its rights and contentions raised in the petition. To ensure fairness, the judges directed that the fresh tender be subjected to the outcome of the pending petition, meaning MSRDC and MSLL must inform participants about the pending litigation. The petition has been posted for further consideration on June 8.
This development underscores the court's focus on public interest while balancing contractual rights, allowing the infrastructure project to proceed without delay.
