 The tender condition (Annexure-viii) clearly mentions :

 the right to disqualify bidders/members of consortium whose resolution processor

liquidation or bankruptcy proceeding is initiated under the code at any stage of
evaluation of bid. [(i)(b)]
 the right to cancel/ terminate the contract without any liability on the part of
EIL/GAIL immediately on the commencement of insolvency resolution process or
liquidation or bankruptcy proceeding of any party under the contract. [(iv)]
 the right to evaluate and finalise the bid without considering the bid of any party
undergoing the same. [(v)]
 Shreeyam Power & Steel Industries Ltd. initiated proceedings against Afcons Infrastructure Ltd.
before the NCLT, Mumbai under Sec 9 of IBC. The order dated 25.03.2019 does not reject or
approve the application but adjourns the matter to 10.06.2019(a copy of which is not uploaded on
the website and hence cannot be commented upon)
 As per sec 9(6) of IBC the Corporate Insolvency Resolution Process commences from the date of
admission of the application under 9(5)(i).

Therefore, the legal department is of the opinion that subject to the order dated 10.06.2019 since the
application is not admitted by the NCLT, the Corporate Insolvency Resolution Process has not begun and thus
the party cannot be disqualified as per the tender conditions. However, if the Corporate Insolvency Resolution
Process begins at any later stage against the bidder, GAIL reserves the right to terminate the same without any
liability(Annexure viii-(iv))