SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(Del) 565

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

Advocates Appeared:
Mr. Ajay Verma, Sr. Adv. with Mr. Ishaan Verma and Mr. Amitesh Gaurav, Advs.
Mr. Sanjay Poddar, Sr. Adv. with Mr. Manu Chaturvedi, Ms. Aakriti Singh, Mr. Govind Kumar, Mr. Sachin Bhatt and Mr. Pratish Goel, Advs. for Respondent/MCD.
Mr. Arun Bhatta, Ms. Indira Marla, Ms. Ranjna Ahuja and Mr. Abdul Vahid, Advs. in C.M. Nos. 13304-13305.

Headnote:(A) Constitution of India - Articles 14, 19 and 21 - Judicial review in tender matters - The Respondent Corporation erroneously issued an NIT based on incorrect area, leading to retendering to adhere to public interest - Court emphasized minimal judicial intervention in bona fide decision-making processes (Paras 32, 34).

(B) Contractual obligations - No concluded contract was established due to failure to sign necessary agreements - Petitioner cannot demand enforcement of terms from an ambiguous provisional allotment (Paras 17, 21, 30).

Facts of the case:
The Appellant, winner of a parking site tender, was limited to operate on significantly less area than promised. The Respondent's failure to provide the full area led to retendering attempts due to a mistake of fact, raising issues regarding contract validity and judicial remedies.

Findings of Court:
The Single Judge ruled against the Appellant’s writ petition, affirming that the actions of the Respondent were justifiable under the circumstances and did not breach contractual rights in a judicial context.

Issues: The main issues were whether a concluded contract existed, and if the decision to retender was arbitrary or in violation of the Petitioner’s rights.

Ratio Decidendi: The court held that Respondent’s actions did not amount to malevolence but were corrective of their own prior mistake, thus permitting retendering as lawful (Paras 26, 33).

Result: The appeal is dismissed.

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:

    a. The North Delhi Municipal Corporation (hereinafter referred to as “Respondent” or “Respondent Corporation”) on 09.10.2020 issued a Notice Inviting Tender (NIT) bearing NIT No. 197, calling for tenders to allot the Truck Parking Site at Timarpur, New Delhi on a monthly license basis. A site-plan/map of the subject parking site was annexed along with the NIT and it is stated that as per the said site-plan, the total area of the parking site was 42,667.851 square meters with the actual area of the parking site being 38,015.62 square meters.

    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

        Click Here to Read the rest of this document
        1
        2
        3
        4
        5
        6
        7
        8
        9
        10
        11
        SupremeToday Portrait Ad
        supreme today icon
        logo-black

        An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

        Please visit our Training & Support
        Center or Contact Us for assistance

        qr

        Scan Me!

        India’s Legal research and Law Firm App, Download now!

        For Daily Legal Updates, Join us on :

        whatsapp-icon Back to top