High Court Of Delhi
CHANDER MOHAN - Appellant
Versus
AIRPORT AUTHORITY OF INDIA - Respondent
Decided On : 09/19/1996
( 1 ). The present petition is directed against respondents I and 2 for quashing the contract which the said respondents have allegedly entered into with respondent No. 4 for display of Glow Signs and Hoardings in Departure Hall, Jaipur Airport, Jaipur without following the prescribed and established tendering procedure.
( 2 ). The petitioner is the sole proprietor of Chand Associates, a proprietory concern carrying on the business of putting advertisement hoardings and other allied hoardings and has been carrying on the said business in major cities of India. It is further alleged that the petitioner has been getting awards from various Government, public sector and private sector organisations for displaying their advertisement hoardings and to put up glow signs for last more than 5 years. Respondent No. 1 is a body constituted under the Airports Authority of India Act, 1994 and is responsible for running and managing the airports situated in the country. Respondent No. 2 is the person incharge looking after the matters of respondent No. l in the Delhi region. Respondents 3 and 4 are also engaged in business similar to that of the petitioner. It is further alleged that respondent No. l by virtue of powers vested in its favour under the above said Act, issues all licences, permits, quotas and exemptions for better management and running of the airports and also invites tenders/offers from eligible contractors for providing such services or facilities, as may be required.
( 3 ). The procedure adopted by respondent No. l to award contracts to eligible contractors, as stated in paragraph 7 of the petition is (a) to issue public notices in newspapers and/or relevant trade magazines or by displaying the tender notice on the Notice Boards art the relevant airports thereby inviting the eligible contractors to participate in such tenders by quoting their rates; (b) to short list the best eligible parties and to award the contract or to negotiate further and thereafter award the contract to one such party who fulfills the requirements of respondent No. 1.
( 4 ). It is submitted that the above is the prescribed procedure of tendering followed by all Government and public sector undertakings to award contracts for various items. Respondent No. 1 has been following the said procedure from time to time to award contracts, including the award of Jaipur Airport Arrival Hall to number of contractors. The copies of such tender notices issued by respondent No. 1 in newspapers and/or trade magazines are collectively filed as Annexure-A to the writ petition. The petitioner further contends that it has come to his notice from the market sources that during the second week of February, 1996, respondent No. 2 has been negotiating with certain parties to award contract for a period of three years for comprehensive advertisement which would comprise of hoarding glow signs etc. at the departure hall of Jaipur Airport which was allegedly stated to be worth Rs. one Crore. The partics to the present petition did not deny the fact that there was no tender invitation from respondents I and 2 either in the newspapers or trade magazines or no such tender notice was displayed on the notice board at the offices of the Airports as has been the usual practice of respondent no. 1 to award contracts. The said respondents issued notices inviting tenders for exclusive advertisement rights for Jaipur Airport (Arrival Hall) in newspapers in March/april, 1995 and all normal procedures were adopted for award of contract in respect of the advertisement rights for Arrival Hall whereas in the case of Departure Hall for the same Airport, respondents I and 2 deviated from such procedure for the reasons best known to them. Respondent No. 2 issued a letter/tender notice only to two parties i. e. respondents 3 and 4 in the month of Scptember,1995 and it is not denied that the nego tiations with the said two parties had taken place and respondents I and 2 were in
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