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K. VINOD CHANDRAN, PARTHA SARTHY
National Highway Authority of India, Ministry of Road Transport and Highways – Appellant
Versus
U Toll Corporation Ltd. – Respondent
JUDGMENT :
K. Vinod Chandran, J.
The appeal by the National Highways Authority of India, (for brevity “NHAI”) impugn the judgment of the learned Single Judge which not only asserted jurisdiction to decide the case, but also interfered with the action of the respondent NHAI in having cancelled the Letter of Award ( for brevity “LoA”) issued to the writ petitioner and set aside the fresh tender notification issued by the NHAI pursuant to the cancellation. The learned Single Judge also directed the bank guarantee invoked on alleged misdemeanor of producing false documents to be refunded to the writ petitioner.
2. Learned Counsel Dr. Maurya Vijay Chandra appearing for the NHAI seriously assailed the findings in the impugned judgment regarding jurisdiction insofar as the entire tender process having been carried out from Delhi, wherein the writ petitioner also had their office and so were the further transactions including the cancellation carried out from Delhi. There was also this specific clause excluding jurisdiction anywhere other than those of the Courts within Delhi, in the bid document the Request For Proposal (RFP); which term is deemed to have been agreed to by the petitioner who
The main legal point established in the judgment is the importance of jurisdiction, principles of natural justice, and procedural regularities in the tender process, as well as the consequences of ar....
Point of Law : when a bidder who has not been issued the final acceptance of the bid by the competent authority being the highest bidder acquires no vested right ,but the bidder has right to equality....
The cancellation of a Letter of Acceptance due to an 8-day delay in performance security submission was deemed unreasonable, emphasizing the need for fairness in public contract processes.
A tendering authority is justified in cancelling a Letter of Award (LoA) and debarring a bidder for three years if the bidder is negligent in submitting fake bank guarantees.
The jurisdiction for tender disputes arose in New Delhi as per exclusive jurisdiction clause, not in States where the bidders operated.
The annulment of a tender by the NHAI was justified due to the petitioner's failure to comply with procedural requirements, affirming the authority's discretion in public procurement.
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