A.K. Chawla JUDGMENT
S. Ravindra Bhat, J.
1. The Petitioner is a wholly owned subsidiary of SREI Infrastructure Finance Limited, which owns 99.90% of the shares. The first respondent/Oil and Natural Gas Corporation Limited (ONGC Ltd.) floated the subject charter hire of four numbers of Drilling Rigs for Mehsanam and Rajamundhry Assets. The Petitioner is aggrieved by the interpretation of the financial criteria of the tender, whereby the bidding company is required to possess 15% net worth of annualized bid value. The total bid value is ` 500 crore; 15% of that works out to ` 75 crores.
2. The facts necessary to decide the case are that ONGC published a tender calling for bids, on 30.12.2016 for charter-hire of four Drilling Rigs for Mehsanam and Rajamundhry Assets. The original tender did not contain the working capital criteria under the bid evaluation criteria. By its letter, dated 23.03.2017 ONGC informed the petitioner with regard to the amendments made in the tender. The BEC financial criteria of the Tender too were amended. The relevant criteria included consequently reads as follows:
"Working Capital :15% of annualized bid value or more as the working capital requirement besides other changes."
3. The tender was published on the ONGC's portal on 27.03.2017. The Financial criteria of its Bid Evaluation Criteria, stated that:
"FINANCIAL CRITERIA
1. Turnover of Bidders: 50% of annualized bid value or more;
2. Net worth of Bidder: 15% of annualized bid value or more.
3. Working Capital: 15% of annualized bid value or more
Notes:
(vi - (a) A bidder (other than consortium) which is not able to meet the financial criteria by itself, can also submit is bid on the basis of financial capability of a supporting company provided each of the following conditions are fulfilled:-
i. The bidder is supported by a supporting company which holds more than fifty percent of the paid up equity share capital of the bidder.
ii. The supporting company by itself and not through any other arrangement satisfies the financial criteria of the BEC.
iii. Supporting company shall furnish additional PBG equivalent to 50% of the amount of PBG submitted by-bidder as per the format provide at Annexure-A.
iv. In such cases, all applicable financial parameters viz. Turnover, Net-worth, Working Capital, D/E ratio of the supporting company only will be considered for evaluation and the financial capability of the bidding entity will not be considered for evaluation."
4. The petitioner submitted its bid by relying on the financial strength of the SREI Infrastructure Finance Ltd. i.e. its 100% parent Holding Company(Supporting Company) on the basis of the consolidated audited financial accounts for the financial year 2015-16. The tender further categorically stated that in the event, a bidder is unable to meet the criterions, it can submit the bid on the basis of the financial capability of a supporting Company, provided the supporting company held more than 50% of the paid up equity share capital of the bidder. The tender also stipulated that in case the working capital of a bidder is inadequate in meeting the tender requirements provided under the Clause B.2.6 (3), the Tender provides that the bidder can make good this shortfall through a Line of Credit confirming the availability of unutilized line of credit for meeting the shortfall from a Scheduled banker, through a letter specifically mentioning the tender number. The Petitioner, along with its bid submitted a letter, dated 11.04.2017 issued by the Andhra Bank at the request of SREI stating the latter's cash ........