SC allows Gammon India to bid for upcoming 8 Metro Stations in Delhi

Gammon had moved an appeal against Delhi HC judgment upholding award of Rs 665 cr work to GYT-TPL

New Delhi: The Supreme Court today granted partial relief to Gammon India Ltd when it asked the Delhi Metro Railway Corporation to consider its financial bid for building eight metro stations in the capital. Its rival civil engineering firm, GYT-TPL, may match its financial bid if it is lower, the court said.

Gammon had moved the appeal against the Delhi high court judgment upholding the award of Rs 665 crore work to GYT-TPL, ajoint venture between a Chinese firm and the Tatas.

The bench headed by Justice T S Thakur modified the high court order invoking public interest. The bench also observed that the high court judgment will not act as blacklisting Gammon in the current bids. DMRC also gave an assurance on this count, though it had earlier pointed out that the company has been blacklisted earlier.

Gammon argued that it has completed 13 projects for DMRC and no infrastructure company could make such a claim. However, it was thrown out of the race on technical grounds, which was arbitrary. When its bid was rejected it was not shown why it was done. The rejection was the result of information collected behind its back, without giving an opportunity to meet the allegations.

DMRC and the joint venture contended that Gammon had suppressed important information in the bid documents, leaving certain columns blank. It had not disclosed deficiency in the contracts in Chennai and even in Delhi.

Though it had become eligible by giving doctored information, it was found unsuitable according to other criteria. Moreover, counsel submitted that courts should not interfere in commercial matters unless there was gross arbitrariness.