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VIPIN SANGHI, JASMEET SINGH
Las Ground Force Pvt. Ltd & Anr. – Appellant
Versus
Airports Authority Of India – Respondent
JUDGMENT :
JASMEET SINGH, J.
1. The present writ petition has been filed by the Petitioner seeking the following substantial reliefs:
(b) Issue a Writ of Mandamus or any other Writ or order or direction in the nature of Writ of Mandamus setting aside the forfeiture of the Petitioner’s Bid Security, restoring the Petitioner’s Bid Security and restoring the Letter of Intent to Award dated 12.01.2021 issued in favour of the Petitioner No. 1 for the Goa airport;
(c) Issue a Writ of Mandamus or any other Writ or order or direction in the nature of Writ of Mandamus directing the Respondent No. 1 to accept the bank guarantees obtained by the Petitioners
The court affirmed that failure to comply with contractual obligations cannot be excused by force majeure claims where the party did not act with due diligence, emphasizing the need for adherence to ....
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.
The main legal point established in the judgment is the validity of the Bank Guarantee submitted by the petitioner and the application of principles of natural justice by the respondents.
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 invocation of Bank Guarantees must be aligned with contractual terms; unauthorized invocation is deemed arbitrary.
Judicial review is permissible in contractual disputes involving public law elements, but the existence of an arbitration clause limits the scope of such review.
The submission of a bogus Bank Guarantee by a bidder justifies a two-year ban under tender conditions, as the term 'certificate' includes documents.
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