The central government and Steel Authority of India have been issued notices by the Delhi High Court seeking their response to a petition contesting the rejection of JK Cement's bid to partner the steel major on a joint venture slag based cement plant.
A Division Bench comprising Justices Sanjay Kishan Kaul and Valmiki J Mehta issued notices to the Centre and directing them to file replies to the JK Cement petition within three weeks. The high court has scheduled the next hearing on the matter on January 19th 2011.
JK Cement claims that its bid was rejected in an arbitrary manner despite being the most suitable.
In October, 2007, SAIL had invited bids for joint venture participation in a proposed slag based cement plant at Rourkela, in Orissa. However, the tender proceedings came to an abrupt halt due to some dispute. The matter was later taken to the Orissa High Court, which stayed the tender proceedings.
Later, the bids were opened in 2009 and JK Cement was found to be the highest bidder. However, SAIL did not issue a Letter of Intent and instead, rejected the bid on November 2nd 2010.
During today's proceedings in the Delhi High Court, SAIL gave an assurance that it will maintain the status quo and not invite any new tender in the near future.
Senior advocate Mr KK Rao appearing for SAIL said that "SAIL would not propose to invite any new tender in the near future, at least till next date of hearing.”
Meanwhile, senior counsel Mukul Rohatgi, appearing for JK Cement, submitted that the PSU has rejected the bid without reasonable justification, even though JK Cement was ostensibly the most suitable bidder.
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