L&T withdraws case against ONGC in tender row

NEW DELHI: The Supreme Court on Monday allowed construction major Larsen and Toubro to withdraw its appeal seeking to restrain state-run exploration major ONGC from considering Malaysia-based Ramunia Fabricators Sdn Bhd's bid for development of B-22 oil field in Mumbai offshore.

A bench headed by Justice C K Thakker while allowing L&T to withdraw the case said that "in view of subsequent developments, the SLP has become infructuous... Permission granted."

The L&T's counsel stated that the petition had become infructous now as the ONGC's management had decided on May 14 to annul the tendering process and call for fresh tender for execution of the work as the Malaysian company was found incapable of performing the project work.

It further said that ONGC should be allowed to go ahead with the fresh tendering process.

L&T had challenged the Delhi High Court that had directed ONGC to consider the Malaysian company's bid, L&T had alleged that Ramunia had violated the mandatory terms of the tender.

The construction major had stated that while Malaysia-based Ramunia Fabricators Sdn Bhd had submitted its bid pursuant to ONGC's decision to invite bids in May 2007 for its B-22 field development project, the tender documents were submitted by its Hong Kong company - Ramunia Fabricators.

According to him, the notice inviting tenders clearly specified that the bidding documents were non-transferable and should be submitted only in the name of the bidder or a consortium led by the bidder in whose name the biding documents were issued.

Besides, the respondents had attempted to influence the process of bid evaluation, bid comparison and contract-award decision by disclosing their price in correspondence, though their price bid was never opened, L&T alleged.