The interest of national security from the Defence perspective assumes greater national significance than the public interest, the High Court of Karnataka has said while quashing a tender awarded by the BHEL to a private company, having consortium agreement with a Chinese company, contrary to the Union government’s restriction imposed on bidders from countries sharing land borders with India.
The court declared as invalid the tender awarded in September 2022 by public sector undertaking Bharat Heavy Electricals Ltd. (BHEL) in favour of Kolkatta-based BTL EPC Ltd, which had consortium agreement with Fujian Longking Co. Ltd, a Chinese company, to set up an Ash Handling Plant forming part of installation of a Thermal Power Station in Telangana. Value of the projected awarded to the company was around ₹378 crore.
A Division Bench comprising Chief Justice Prasanna B. Varale and Justice M.G.S. Kamal delivered the verdict while allowing an appeal filed by Macawber Beekay Pvt. Ltd., a Noida based company. The appellant had questioned the single judge’s November 2, 2022, verdict of dismissing its petition against award of tender to BTL EPC Ltd.
