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2008 Supreme(Kar) 846

High Court of Karnataka
THE HONOURABLE MR. JUSTICE V. GOPALA GOWDA & THE HONOURABLE MR. JUSTICE L. NARAYANA SWAMY
M/s. Flemingo Dutyfree Shops Pvt. Ltd.
Versus
Union of India Rep by its Secretary to Government & Others
Writ Petition No.14215 of 2006 (GM-TEN)
Decided on : 19-12-2008

Advocates appeared:
For the Petitioner:Vinod Bobade Senior Advocate, Arunabh Chowdhary, V. Srinivasa Raghavan, M/s. Indus Law, Advocates. For the Respondents:R1, N.R. Bhaskar C.G.S.C, R2, M/s. Dua Associates, R3 & R4, R.N. Narasimha Murthy Senior Advocate, T.S. Amarkumar, Advocate, M/s. Lawyers INC, M/s. J. Sagar Associates, R5, M/s. Poovayya & Co, R8, M/s. Kamath & Kamath, R9, V. Lakshminarayana, C.K. Dharaneeshwaran, M. Srinivasa, M/s. Law & Co., Advocates.

Headnote:ADMINISTRATIVE LAW - Tenders: [V. Gopala Gowda & L. Narayana Swamy, JJ] Tender - Short listing of tenders by State authority -Absence of norms and guidelines required to be incorporated in tender invitation - Held, Even in absence of such guidelines and norms, it is bounden duty of State authority to assign reasons as to why petitioner has been excluded from issuance of tenders. Action of State authority not only suffers from arbitrariness but also suffers from legal mala fides. Short listing is an administrative action, must be supported by valid and acceptable reasons.

       CONSTITUTION OF INDIA - Article 14 :[V.Gopala Gowda & L.Narayana Swamy,JJ] Tender - Short listing of tenders by State authority -Absence of norms and guidelines required to be incorporated in tender invitation - Held, Even in absence of such guidelines and norms, it is bounden duty of State authority to assign reasons as to why petitioner has been excluded from issuance of tenders. Action of State authority not only suffers from arbitrariness but also suffers from legal mala fides. Short listing is an administrative action, must be supported by valid and acceptable reasons.

       CONSTITUTION OF INDIA - Article 226 :[V.Gopala Gowda & L.Narayana Swamy,JJ] Amenability to writ jurisdiction - Held, Word ’person’ used in Article 226 may be a natural person or juridical person such as Government, Private or Public Limited company, society, body, corporation etc. who will perform public functions/duties in public interest. They are all amenable to judicial review power of Court under Article 226.

Judgment :-

V. Gopala Gowda, J.

This Writ Petition is filed by M/s. Flemingo Duty-free Shops Pvt., Ltd. a Company incorporated in the year 2004 seeking for issuance of declaratory relief to declare that clause 3.2 of the Invitation for Expression of Interest (hereinafter in short referred to as ‘E.O.I’) issued by the third respondent which is Bangalore International Airport Limited (hereinafter in short referred to as ‘BIAL’), in which it has sought to restrict issuance of tender documents and consideration of bids only from five persons is arbitrary and discriminatory, that the evaluation of the E.O.I by respondents 3 & 4 with respect to Retail and Duty-Free shop to be established in the International Departure and Arrival Duty-free at the New BIAL, Devanahally is arbitrary, discriminatory and further directions to declare the action of the respondents 3 & 4 in short-listing only respondents 5 to 9 for issuance of tender documents and excluding the petitioner from the said list and decision to issue the tender documents in pursuance of invitation dated 26/7/2006 with respect to Retail and Duty-free shops in the BIAL as stated supra is arbitrary, discriminatory and violative of Article 14 of the Constitution of India and direction to respondent No.3 to issue tender documents and the amended prayer to quash the tender allotted in favors of 5th respondent, urging various facts and legal contentions.

2. Brief facts and rival legal contentions are referred to in this order with a view to appreciate the contentions and to answer the contentious issues that would arise for our consideration and determination. In order to support and foster rapid development of Bangalore, Government of Karnataka and the Airports Authority of India (in short referred to as ‘A.A.I’) initiated a Green Field Project for the new BIAL, which is a Public Limited Company. It is a consortium of Karnataka State Industrial Investment Development Corporation (hereinafter in short referred to as ‘KSIIDC’), A.A.I, Unique-Zurich Airport, Larsen & Toubro India Ltd. and Siemens Projects Ventures, GmbH. It is operating under the control of the State in particular under the control of the second respondent-A.A.I, the BIAL discharges duties of a public nature. 26% of the share is held by the Governmental Authorities, all important decisions has to be taken only with the approval of the Governmental Bodies and substantial representation on the Board of Directors from the Government nominees are there for effective functioning of BIAL. It is stated that the State Government has got comprehensive control over the functioning of BIAL. The BIAL has got financial aid from the State and its undertaking Companies, functionally and administratively dominated by and controlled by the first respondent-Union of India(in short referred to as ‘U.O.I’). Setting up Airports in India has been generally by the A.A.I in pursuance to the Airport Infrastructure Policy of 1997 by the first respondent-Union of India. Pursuant to the amendment to certain relevant provisions of the Airports Authorities Act, 1994 (in short referred to as ‘A.A.I.A’ Act), private entities have been allowed to participate in setting up projects. The BIAL has entered into Concessional Agreement with the first respondent in Communication and Navigational Surveillance/ Air Traffic Movement agreement with the A.A.I and the State Support and land lease agreement with Government of Karnataka. The vast extent nearly 4000 and odd acres of land given to BIAL to set up and operate Airport is on the basis of lease by the KSIIDC, the land was acquired by the Karnataka State Government in exercise of its eminent domain power. The BIAL has been promoted with the second respondent having significant share holding, in addition to this with KSIIDC and other private shareholders referred to supra with a view to establish the new International Airport at Bangalore. The Union of India has granted exclusive right and privilege to BIAL t


































































































































































































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