IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
RAMESH SINHA, C.J., BIBHU DATTA GURU, J.
Santosh Tiwari, S/o. Shri Chandrabhushan Tiwari - Petitioner
Versus
Union of India Through Its Principal Secretary, Ministry of Civil Aviation & Ors. - Respondents
WPC No. 4885 of 2024
Decided On : 27-09-2024
(A) Concessionaire Support Scheme - COVID-19 pandemic - Extension of license period - Petitioner sought extension of license for operating parking management system at Raipur Airport, citing pandemic impact and discrimination compared to other airports - Court found no grounds for interference in tender process or extension claims. (Paras 20, 25, 28)
(B) Judicial Review - Scope - Courts exercise restraint in contractual matters, particularly regarding tender processes - Interference is warranted only in cases of clear arbitrariness or mala fides. (Paras 27, 28)
Facts of the case:
The petitioner, proprietor of M/s. Anjaney Enterprises, sought to quash a new tender for parking management at Raipur Airport and extend his existing license, citing significant investments and pandemic-related losses.
Findings of Court:
The court found no merit in the petitioner's claims for extension or against the new tender process, emphasizing the need for restraint in contractual disputes.
Issues: The main issues were whether the petitioner was entitled to an extension under the Concessionaire Support Scheme and if the new tender process was arbitrary.
Ratio Decidendi: The court ruled that the petitioner could participate in the new tender process and that the respondents had discretion in extending contracts, emphasizing public interest over individual claims.
Result: Petition dismissed.
JUDGMENT :
Ramesh Sinha, C.J.
1. By this petition, the petitioner has prayed for the following relief(s) :
10.2 Issue writ of Mandamus, appropriate writ, writ order against the respondents and thereby direct them to provide extension of the license period in the license agreement dated 28/11/2019 for Concession to supply, install, test, commission, and operate automated parking management system, collection of parking fees and access fees; and lane management at Swami Vivekananda Airport, Raipur, under Concessionaire Support Scheme, which is at Annexure-P2, in the interest of justice.
10.3 During the pendency of the present petition grant stay to the process of impugned E-Tender ID No. 2024_AAI_208987_1, September 2024, Notice Inviting Short Term E-Tender (NIET) for Operating Automated Vehicle Parking Management, System, Collection of Parking fees and Excess Time Fees Rights at Swami Vivekanand Airport, Raipur floated by the respondent No.6, which is at Annexure-P44, in the interest of justice.
10.4 Any other relief deem fit, under the facts and circumstances of the case may be also granted to the petitioner in the interest of justice.”
2. The facts, in brief, as projected by the petitioner are that he is the Proprietor M/s. Anjaney Enterprises. The main business of the proprietary concern M/s Anjaney Enterprises is to take parking spaces on lease or licence of various Airports in India. Respondent No.5 had published Notice Inviting E-Limited-Tender (for short, NIELT) for Concession to Supply, Install, Test, Commission & Operate Automated Parking Management System; Collection of Parking Fees and Access Fees Rights; and Lane Management at Swamy Vivekanand Airport, Raipur on 08/06/2019 vide E-bid No.: 2019_AAI_27114. The tender processing fee was Rs.25,000/- (non-refundable), earnest money deposit was Rs.3,10,000/- and minimum reserved licence fees was Rs.4,50,000/- per month was prescribed in the aforesaid E-Tender.
3. The petitioner applied for the aforesaid tender and submitted the bid on 29/06/2019. After opening of the bids, the petitioner's bid was accepted by the respondent No.5 & 6 and accordingly, the respondent No.6 issued award letter dated 13/08/2019 to the petitioner. By virtue of the said licence agreement dated 13/08/2019, the respondent No. 5 awarded the License for the said work at Swamy Vivekanand Airport, Raipur on monthly license fee of Rs.6,57,777/- per month plus taxes and charges with annual escalation as per Appendix 2A. The license period was for five years from the date of commencement of operation or expiry of gestation period, whichever is earlier. The petitioner had to pay advance license fee with GST i.e. Rs. 6,57,777/- plus GST at the rate 18% Rs. 1,18,400/-= Rs. 7,76,177/-. The petitioner was also required to pay security deposit in the mode of 6 months of concession fee of fifth year i.e. Rs.57,78,308/-. The security deposit was payable in the mode of 3 months, concession fee of Rs. 28,89,154/ in the form of Bank Guarantee from any Scheduled Commercial Bank and 3 months equivalent Concession Fee of Rs.28,89,154/- in the form of Demand Draft/ NEFT/ RTGS in favour of Airport Authority of India, payable at Raipur to be deposited within 15 days from the date of award letter. The petitioner was further required to pay security deposit of electricity of Rs. 33,000/- in the form of Demand Draft / NEFT / RTGS in favour of Airport Authority of India payable at Raipur within 15 days from the date of award letter. In compliance to the letter dated 13/08/2019
Silppi Constructions Contractors v. Union of India
Association of Registration Plates v. Union of India and Others
The court upheld the discretion of the Airport Authority in tender processes, emphasizing the need for restraint in judicial review of contractual matters, particularly during the COVID-19 pandemic.
The discretion of public authorities in contract renewals must align with contractual terms and not amount to arbitrary action, ensuring transparency and fairness in public procurement.
A concession period extension under a contract requires compliance with specific procedural conditions, and is not automatic despite recommendations from an independent engineer.
The highest bidder in a tender process does not have a vested right to award, as cancellation must align with commercial prudence and is permissible under administrative discretion.
The court established that the COVID-19 pandemic qualifies as a force majeure event, warranting an extension of contractual obligations, and underscored the necessity of arbitration in resolving disp....
Lenders cannot independently seek extension of concession period under Concession Agreement, their rights do not confer standing in this matter according to the agreements in place.
The main legal point established in the judgment is the limited scope of judicial review in tender/contractual matters, emphasizing that courts cannot rewrite contracts and that the remedy for contra....
Tender Process - Extension of period of Contract - Placed on successful bidders may be extended/repeated at sole discretion of Corporation for a further period of up to 12 months including increasing....
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