IN THE HIGH COURT OF DELHI AT NEW DELHI
SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD, JJ.
Sanjay Yadav - Appellant
Versus
North Delhi Municipal Corporation - Respondent
LPA No.294 Of 2022 & C.M. Nos. 21339-21342 Of 2022, 1223 Of 2023, 13304-13305 Of 2023 & 13540 Of 2023
Decided On : 01-05-2023
| Table of Content |
|---|
| 1. introduction of the case and background. (Para 1 , 2 , 3) |
| 2. factual developments surrounding the tender process. (Para 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15) |
| 3. arguments presented by both parties. (Para 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23) |
| 4. court's observations on the validity of the tender process. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32) |
| 5. explanation of the limits of judicial review in contract matters. (Para 33) |
| 6. court's specific legal conclusion. (Para 34) |
| 7. final dismissal of the appeal. (Para 35) |
JUDGMENT :
(Satish Chandra Sharma, J.) :-
The instant Letters Patent Appeal has been preferred by the Appellant herein challenging the Judgment dated 29.04.2022 (“Impugned Judgment”) passed by the Learned Single Judge in W.P.(C) No. 6454/2022, wherein the Ld. Single Judge has dismissed the Writ Petition preferred by the Appellant/Petitioner.
2. Shorn of details, the facts necessary for the adjudication of the instant appeal are as under:
b. It is stated that the minimum reserve price for submitting the bid and for grant of license was Rs. 9,45,000/- and the bid/tender could be submitted only along with a sum of Rs. 9,45,000/- being deposited as a Security Deposit.
c. The last date for submission of the bids was 05.11.2020 and the date for opening of technical and financial bids was 09.11.2020 and 17.11.2020 respectively. It is stated that as per the terms of the NIT, the successful bidder, on receipt of a Letter of Intent (LOI) was required to submit 1 (one) month's advance rent, 3 (three) months security deposit and 4 (four) months earnest money within 7 (seven) days of receipt of the LOI.
d. It is stated by the Appellant that he relied upon the size of the parking site as being 38,000 square meters as per the NIT and submitted a bid of Rs. 36,51,000/- and duly deposited the sum of Rs. 9,45,000/- as security deposit.
e. It is stated that while bids were opened on 17.11.2020, the Appellant was issued the LOI dated 05.10.2021 only on 11.10.2021 via e-mail, informing the Appellant/Petitioner that his bid had been accepted. The Appellant vide e-mail dated 13.10.2021 accepted the LOI issued to him.
f. It is stated by the Appellant, as 11 months had passed since the date of security amount being deposited and due to the COVID-19 pandemic, the Appellant had suffered a lot in his business and vide letters dated 14.10.2021 and 25.10.2021 the Appellant requested the Respondent Corporation to grant him 5-6 months’ time to deposit the requisite amount as per the terms of NIT.
g. In response to the said request made by the Appellant, the Respondent Corporation issued a provisional allotment letter dated 11.11.2021, thereby, granting him the license to run the subject parking site and to deposit the requisite amount of Rs. 2,82,63,000/- on or before 31.01.2022.
h. Thereafter, the Appellant deposited the advance monthly license fee of Rs. 36,51,000/- and the Respondent Corporation issued a letter dated 18.11.2021 asking the Appellant to run the subject parking site. It is stated that the Appellant took possession of the subject parking site on the same day itself.
i. It is stated that the Appellant deployed 10 separate parking attendants and put up a porta cabin, sign boards, yellow paint and CCTV Cameras so that the parking could be run smoothly & efficiently. However, the Appellant states that the local shop-keepers restrained him from using any area of more than 5005 s
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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....
The decision-making process in tender matters must be fair, transparent, and not arbitrary, and interference by the court is restricted unless there is evidence of mala fides, intention to favor some....
The tendering authority can cancel a tender for a single bidder if it serves public interest by ensuring greater competition.
Judicial review over award of contracts must consider public interest, and courts should refrain from intervening unless decisions are deemed arbitrary or irrational.
Judicial review in contractual matters is limited to evaluating decision-making processes and does not extend to substituting the authority's decisions unless clear evidence of arbitrariness or mala ....
The interpretation of 'as is where is' clause does not absolve the vendor of responsibility for delivering an operational property; oral assurances prior to contract affect enforceability.
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