VPT contract termination won’t bar Adani Ports from future tenders: SC | The Financial Express

VPT contract termination won’t bar Adani Ports from future tenders: SC

Adani Ports stated that its disqualification on the basis of VPT’s termination of the Adani Vizag concession agreement was erroneous because it was Adani Vizag which first terminated the contract due to force majeure. J

VPT contract termination won’t bar Adani Ports from future tenders: SC
JNPA had on May 2 written to Adani Ports that it was disqualified from participating in further stages of the tender process, as it had failed to reveal about the termination of concessionaire agreement between Adani Vizag Coal Terminal and VPT in 2020.

The Supreme Court on Monday held that Adani Ports & Special Economic Zone’s disqualification, arising from the termination of the contract by Visakhapatnam Port Trust (VPT) in 2020, shall not come in the way of the company from participating in future tenders issued by other public authorities.

A bench led by Justice MR Shah said that shall not bar or act as disqualification for the company from participating in future tenders.

The decision has come on an appeal by Adani Ports challenging disqualification of its bid for maintenance and upgradation of the Jawaharlal Nehru Port Authority’s (JNPA) container terminal in Navi Mumbai.

While Adani had submitted that it did not want to participate in the tender process after JNPA had awarded the contract to some other party, it had asked the apex court to settle the principles of law so as to avoid any future disqualification.

JNPA had on May 2 written to Adani Ports that it was disqualified from participating in further stages of the tender process, as it had failed to reveal about the termination of concessionaire agreement between Adani Vizag Coal Terminal and VPT in 2020.

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However, Adani Ports stated that its disqualification on the basis of VPT’s termination of the Adani Vizag concession agreement was erroneous because it was Adani Vizag which first terminated the contract due to force majeure. JNPT was fully apprised and made aware of the pendency of the arbitration proceedings between VPT and Adani Vizag, and the Vizag disqualification for “non-disclosure” cannot be applied to the present case, as the JNPA order nowhere identified non-disclosure as the grounds for disqualification.

The disqualification by JNPA was upheld by the Bombay High Court in June. The HC had also imposed a cost of `5 lakh for filing a case that lacked merit.

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