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SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD
Saptagiri Restaurant Pvt. Ltd. – Appellant
Versus
Airport Authority Of India – Respondent
JUDGMENT
Subramonium Prasad, J. - The instant Writ Petition has been filed by the Petitioner against the inaction of the Airport Authority of India ('Respondent No. 1') in issuing the tender for concession to Design, Fit-Out, Finance, Develop, Market, Operate, Maintain and Manage the Food & Beverage Outlets at Pune Airport, Pune ('Impugned Tender') in favour of the Petitioner. This Writ Petition has been filed with the following prayers:
'a. Pass a Writ of Mandamus or any other writ, order or direction in the nature thereof directing the Respondent No. I to issue LOIA to the Petitioner in terms of the RFP bearing E-bid No.(Tender ID No.) 202lAAI762041 in respect of Concession to Design, Fit-Out, Finance, Develop, Market, Operate, Maintain and Manage the Food & Beverage Outlets at Pune Airport, Pune" and handover possession of area earmarked for the said concession to the petitioner in terms of the RFP bearing E-bid No. (Tender ID No.)2021AAI762041;
b. Pass a Writ of Certiorari or any other Writ, Order or direction in the nature thereof quashing / setting aside Commercial Circular No. 42/2021 to the extent it is sought to be applied to Tenders/ RFP already floated by Respondent No. I w
A successful bidder in a tender process does not have a vested right to the contract, and the tendering authority can cancel bids based on commercial prudence.
The main legal point established in the judgment is that the termination of a tender based on reasons unrelated to the business of the petitioner and without a fair opportunity of hearing is violativ....
The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
The authority may cancel a tender without reason if lack of competition is evident; bidders have no enforceable rights without formal acceptance of their bids.
The procuring entity has the discretion to cancel tenders and re-invite bids without prior communication of reasons; judicial review is limited to assessing arbitrariness or statutory violations in p....
The cancellation of a tender by a public authority is valid if it is based on informed considerations regarding competitive pricing, allowing the authority to reject bids without justification.
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