HC quashes Varun Ship plea against Petronet

The Delhi High Court today dismissed the petition filed by Varun Shipping Company led consortium challenging the Petronet LNG Ltd's (PLL) decision to call fresh bids for the contract for time chartering an LNG tanker. This 25-year contract for carrying LNG for Dahej project is estimated at Rs 3,200 crore.

"The Delhi High Court has given a verdict in favour of Petronet. Now, the board will decide the future course of action. We have the option to either to go for rebidding or any other route the board decides," a senior PLL executive said.

PLL had asked the three bidders to re-submit their price bids on December 9 after shortlisting Varun Shipping along with its consortium partners "� Exmar marine NV and Tecto NV of Belgium, Indian Oil Corporation "� for the LNG contract.

PLL had cancelled the earlier three bids as a fall out of the government's decision to keep the existing LNG guidelines in abeyance, insisting that LNG vessel to be flagged in India.

Other two players in the fray for this Rs 3,200-crore LNG carriage were Great Eastern Shipping Company Ltd (GE Shipping) with Teekay Shipping Corporation and the Shipping Corporation of India (SCI) along with Mitsui O S K Lines and NYK Line.

Varun Shipping managing director Yudhishthir Khatau said the Delhi High Court had not upheld the company''s plea and permitted PLL to decide their option for bidding for LNG haulage contract. "We will now wait for the outcome of the PLL board decision. However, we have already submitted rebid for the contract with PLL," Khatau said.

According to sources, the High Court found no reason to interfere with the decision of PLL going for rebidding.

Interestingly, PLL had filed a caveat against Varun Shipping and GE Shipping with the Mumbai High Court on December 16 anticipating legal action by Varun Shipping.