Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Petroleum and Natural Gas Regulatory Board |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Petroleum and Natural Gas Regulatory Board (AuthorizingEntities to Lay, Build, Operate or Expand City or Local NaturalGas Distribution Networks) Regulations, 2008:Regulations 5 and 7 – Ninth round of bidding for city or localnatural gas distribution networks (CGD) – For the years 2018-2026 – After opening technical bids, Petroleum and Natural GasRegulatory Board, by its Note dated 23 July, 2018, in order to bringreasonableness to the bidding parameters introduced a criterionstipulating that 2% of total households in terms of census 2011data would be regarded as minimum quote and 100% would beregarded as maximum – The Board Note was not notified to thebidders – On opening the financial bid of technically eligiblebidders, it was found that for 4 Geographical Areas i.e. GAs. 51,61, 62 and 72, the bidders having highest composite score, wereliable to be disqualified on the ground that they had quoted morethan 100% of the total number of households as per 2011 census –Board decided to give them opportunity to explain – Board thereafteraccepting the quotes of highest bidders in respect of GAs. 51, 61and 62 as reasonable issued Letter of Intent (LOI) to them grantingauthorisation – In case of GA 72, quote of highest bidder wasrejected as being unreasonable – The appellant who was sixthhighest bidder in GA 51, third highest bidder in GA 61 and secondhighest bidder in GA 62 challenged grant of authorisation in respectof the three GAs – Second bidder in GA 61 also challenged grantof authorisation in GA 61 – The Chairperson of the Tribunal allowedthe appeals while the technical member dismissed the same – Sincethe Judicial Member of the Tribunal recused himself from the case,the case was transferred to Supreme Court – Held: Regulation 7stipulates the bidding criteria – There is no condition in Regulation7 regarding ceiling or providing for a linkage with the census dateof 2011 – A conditionality which was not incorporated in Regulation7 could not have been introduced by Board Note dated 23 July,2018 – Hence the Board Note cannot be construed to have laiddown absolute norms by which bids quoting below2% or above100% of the number of households would automatically be rejectedas unreasonable – Disqualifying a bidder on the basis of criterionwhich was not notified would have been arbitrary and wouldconstitute infraction of Art. 14 of the Constitution – The Board Notetherefore can be construed as formulation of guideline – Hence theaward of authorisation after calling the highest bidders in respectof GAs 51, 61 and 62 to justify their bids in terms of theirreasonableness cannot be faulted – There was also no breach ofprinciples of natural justice in calling only the highest bidders toexplain reasonableness of their bids as other bidders had no locusto participate in the process. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2020 INSC 199 |
Petitioner | Adani Gas Limited |
Respondent | Petroleum And Natural Gas Regulatory Board And Ors. |
SCR | [2020] 8 S.C.R. 108 |
Judgement Date | 2020-02-17 |
Case Number | 3992 |
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