Karnataka HC orders status quo over Sharavathi project

Senior counsel representing the appellant argued that after the order was passed by the single judge, KPCL has already issued a letter of award dated March 11 assigning the tender work.
Karnataka High Court
Karnataka High Court(File photo)

BENGALURU: The Karnataka High Court directed that all actions pursuant to the letter of award dated March 11, 2024, assigning work after tenders were called for Sharavathi Pumped Storage Hydro Electric Project (8x250MW), Upper Dam (Shivamogga) and Lower Dam (Uttara Kannada) districts by Karnataka Power Corporation Limited (KPCL) at a cost of Rs 8,005 crore shall remain in abeyance. The parties shall maintain status quo till the next date of hearing.

A division bench of Chief Justice NV Anjaria and Justice Krishna S Dixit passed the order on March 11 after hearing the appeal filed by Larsen and Toubro Limited (L & T) questioning the single judge order dated March 6.

Noting that the petitioner, not having participated in the tender, cannot challenge any conditions of tender, the single judge dismissed the petition filed by L&T, challenging the modification of the last date fixed for submission of bid documents, by way of corrigendum dated February 17, 2024.

Senior counsel representing the appellant argued before the division bench that after the order was passed by the single judge, KPCL has already issued a letter of award dated March 11 assigning the tender work. If any further action is permitted at the end of KPCL as well as by the awardee of the contract, it will not only precipitate the subject matter but will also render the appeal virtually infructuous, he argued.

Then the division bench noted that since the appeal is at large before this court on its merits to be examined in respect of the order of the single judge awaited to be available, the letter of award deserved to be kept in abeyance. Once the order of a single judge is available, either party is at liberty to move the appeal, the division bench said.

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