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Our Legal Correspondent

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Chennai Jan. 22 The Tamil Nadu Electricity Board was justified in stipulating in its tender specifications that a tenderer bidding for coal supply should have a washery at Talcher area in Orissa, the Madras High Court has held citing a notification of the Ministry of Environment and Forests that coal used in thermal plants should not contain more than 34 per cent ash.

Dismissing a writ appeal by Chettinad Logistics Pvt Ltd, Chennai, challenging a single judge's order holding that the TNEB's tender rules were in order, the First Bench comprising Chief Justice Mr A.P. Shah and Mr Justice K. Chandru said that in view of the Ministry notification, it was obligatory on the part of TNEB to use only washed coal. The decision to shift emphasis from a mere transportation of coal to supply washed coal had been arrived at on account of statutory requirement prescribed by the Ministry.

According to the appellant, there was only one company owning two washeries in the Talcher mine area, and no other washery was available there. Therefore, tender specification had been manipulated and tailor-made to favour only one party.

The Board submitted that it became obliged in law to shift emphasis from mere transportation of raw coal to supply of washed coal in view of the Environment Ministry's notification.

The Bench said that even assuming that there was only one party capable of complying with tender condition, that by itself could not be a ground for striking down the stipulation. Unless the action of tendering authority was found to be malicious and misuse of its statutory powers, tender conditions were unassailable.

The Bench said it did not find any illegality or irrationality in tender condition prescribed by the TNEB. Writ petition was devoid of merits and accordingly it was dismissed.

More Stories on : Power | Courts/Legal Issues | Coal | Tamil Nadu

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