BENGALURU: Noting that national security assumes greater significance than public interest, the Karnataka High Court directed Bharat Heavy Electricals Limited (BHEL) to consider the bid of Macawber Beekay Pvt Ltd for an ash handling package for the thermal power station being set up at Yadadri in the Nalagunda district of Telangana. BHEL has been told to convey its decision within four weeks.
A division bench of Chief Justice Prasanna B Varale and Justice MGS Kamal passed the order holding the tender awarded by BHEL to a consortium of BTL EPC Ltd and China-based Fujian Longking Company Ltd as invalid. The bench set aside the letter of intent dated September 29, 2022, issued by BHEL, Industrial Systems Group. The court said it is necessary to note that the office order dated July 23, 2020 was issued by the Ministry of Finance in exercise of Rule 144 in the defence interest of the nation.
This court cannot be oblivious to the fact that Fujian Longking Co. Ltd. is a Chinese entity, the court added. “Considering the nature of the transaction and the nature of work to be carried out by the BTL EPC Ltd. and Fujian Longking Co. Ltd., and also the mandatory requirement of registration with the competent authority not having been complied with, a mere claim of public interest getting adversely affected cannot be pitted against the national interest...
The BHEL, Industrial Systems Group, ought to have ensured that there is complete compliance with the office order which has been issued in the interest of national security from the defence perspective which assumes greater national significance, than the public interest as sought to be made out by the Respondent”, the court said. Macawber Beekay Pvt Ltd appealed against a single-judge order dated November 2, 2022, dismissing its petition against BHEL awarding the tender to the consortium.
The court said that BTL EPC Ltd., which was not technically qualified, entered into a consortium agreement with Fujian Longking Company Ltd. and jointly submitted the bid. They didn’t comply with the mandatory requirement of registering with a competent authority.