ONGC’s $200-million order to L&T-Pipavav Shipyard valid: Bombay High Court

MUMBAI: The Bombay High Court on Thursday said that the $200-million order given by ONGC to the Larsen & Toubro-Pipavav Shipyard consortium for maintaining the explorer’s rig Sagar Pragati was valid.


The court dismissed the plea by Afcons Infrastructure, which had challenged the consortium, arguing that it wasn’t technically qualified to execute the ONGC order. While dismissing Afcons’ plea, the division bench comprising Justice DY Chandrachud and Justice MS Sonak, said, “Having regard to public interest involved in the expeditious completion of the work, we are not inclined to grant any further extension to the stay.”

Earlier, Afcons Infrastructure, a subsidiary of the Shapoorji Pallonji Group, approached the court, trying to restrict the bidding by L&T, Pipavav Defence and Offshore Engineering. Afcons had also bid for the ONGC tender, but couldn’t bag it.

The court has also stated that the division bench is unable to subscribe to the submission that the consortium failed to fulfil the requirements of eligibility or that there was any alteration in the tender conditions mid-way through the enquiry.

The state-run ONGC had floated the tender inviting competitive bids in 2012.

“The court has accepted the fact that no objections were raised by the petitioners (Afcons) until the respondents (L&T and Pipavav Shipyard) were found to be the lowest bidders after the opening of the price bids on May 21, 2013,” said Vikram Trivedi, managing partner of Manilal Kher Ambalal & Co, who was representing L&T in the case.