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SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD
Saptagiri Restaurant Private Limited – Appellant
Versus
Airport Authority Of India – Respondent
JUDGMENT
Subramonium Prasad, J. - In the instant Writ Petition, this Court will determine whether the decision of the Airports Authority of India ('Respondent No. 1') to cancel of Request for Proposal ('RFP') for inter alia, operating and maintaining the Food & Beverage Outlets at Swami Vivekananda Airport, Raipur, after the Petitioner, i.e Saptagiri Restaurant Private Limited, had emerged as the highest bidder, is sustainable in law.
2. The Petitioner has placed on record the following facts:
a. In 2020 and early 2021, the Respondent No. 1 issued Request for Proposals for inter alia, operating and maintaining the Food & Beverage Outlets at Swami Vivekananda Airport, Raipur bearing requirements for minimum monthly guarantees of Rs. 40,18,888/- and Rs. 31,34,225/-. However, there were no bidders for the RFP.
b. Thereafter, in 2021, the Respondent issued an RFP for inter alia, operating and maintaining the Food & Beverage Outlets at Swami Vivekananda Airport, Raipur. This time the minimum monthly guarantee was of Rs. 28,20,805/-.
c. The Petitioner submitted its technical and financial bid on 15.07.2021 for the RFP. The Petitioner's bid was found to be technically compliant. Thereafter, on
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 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.
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 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 authority's interpretation of tender conditions is paramount, and non-compliance with explicit requirements justifies cancellation of bids.
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 tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
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