Sat. Sep 19th, 2020

M/S Synergy Steels Limited vs Petroleum And Natural Gas … on 5 October, 2015

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BADAR DURREZ AHMED, J

1. Through this writ petition, the petitioner (Synergy Steels Ltd [‘SSL’])
seeks:-
2. This petition pertains to the public notice dated 26.09.2013 issued by
PNGRB inviting bids for development of City Gas Distribution networks in,
inter alia, Ernakulam District (Kerala) in terms of Regulation 5(5) of the
Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay,
Build, Operate or Expand City or Local Natural Gas Distribution Networks)
Regulations, 2008 (hereinafter referred to as “the 2008 Regulations”).
3. In brief, the case of SSL is that IOAGPL, after being given the LOI
dated 20.01.2015 for grant of authorization, did not furnish the requisite
performance bank guarantee of Rs. 4248 crores within the period of 15 days
of the said LOI and, therefore, the said LOI is liable to be quashed. It is also
the case of SSL that the extension of time given to IOAGPL by PNGRB for
submitting the Performance Bank Guarantee beyond the period of 15 days
stipulated in the said LOI was contrary to the tender conditions and the 2008
Regulations. The Performance Bank Guarantee was submitted on
17.06.2015. The petitioner (SSL) also contends that non-submission of the
Performance Bank Guarantee within the stipulated time entailed not only the
cancellation of the said LOI but also the disqualification of IOAGPL and
consequent entitlement of SSL to be issued the LOI being the next highest

bidder. The following decisions of the Supreme Court were referred to and
relied upon by the learned counsel for SSL:-

Source: Indian Kanoon

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