The Delhi High Court has reprimanded BSNL and directed it to proceed with its multi-million project with the IT firm Millenium Automation. The contract entailed MA delivering Internet Protocol Data Recovery and Centralized Mobile Billing solutions for BSNL.
The state-owned telecom operator had terminated the multi-crore agreement with Millennium Automation Private Limited, signed on July 19. The contract was for the "Supply, Installation, Testing, Commissioning, and Annual Maintenance of IT hardware and related software for BSNL's centralized Mobile Billing System and Probe-based IPDR Management Solution." The termination was based on allegations of collusion and misconduct by the company in obtaining the purchase order.
In the judgment passed on 19th November, Justice Sanjeev Narula emphasized that the sanctity of the trading process is crucial and must be guarded through appropriate measures, the allegations of "compromised integrity" could not sustained in this instance due to lack of any "concrete material" supporting BSNL's claims, as per PTI reports.
Additionally, the judge noted that as a 'State' entity under Article 12 of the Indian Constitution, BSNL did not uphold its obligation to act fairly when revoking the purchase order.
"The impugned communication, along with the new grounds introduced to support the impugned rescission, are unreasonable, arbitrary and unsustainable," stated the court.
"Accordingly, the instant petition is allowed and the impugned communication dated 06th August 2024 is set aside," the court concluded.
The court also ruled that serious allegations such as malpractice or collusion cannot rest on mere perception or conjecture of overconfidence.
"There must be tangible evidence to substantiate such charges, especially when they serve as the basis for rescinding a Purchase Order," said the court.
The petitioner said to the High Court that their firm has already spent substantial cost in procuring supplies hence the withdrawal does not stand on any reasonable basis from the contract. The petitioner also submitted the chart of equipment suppliers and clearance status from the Trusted Telecom Portal of the National Security Council Secretariat. The very next day, it received a communication issued BSNL revoking the purchase order.
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