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DELHI HIGH COURT
VIPIN SANGHI, JASMEET SINGH
Las Ground Force Pvt. Ltd. – Appellant
Versus
Airports Authority of India – Respondent
| Table of Content |
|---|
| 1. background of petition and entities involved. (Para 2 , 3 , 4 , 5 , 6 , 7) |
| 2. procedures for performance bank guarantees. (Para 18 , 19 , 20 , 21 , 22) |
| 3. cancellation of loia and petitioner's grievances. (Para 25 , 26 , 27) |
| 4. respondents' counterarguments and compliance issues. (Para 28 , 29 , 30 , 31 , 32) |
| 5. issue of delays and justification by petitioner. (Para 44 , 45 , 46 , 47) |
| 6. administrative acts must be reasonable. (Para 56 , 57 , 58 , 59) |
| 7. force majeure applicability discussed. (Para 64 , 65) |
| 8. conclusion: dismissal of the petition. (Para 66) |
JUDGMENT
Jasmeet Singh, J. The present writ petition has been filed by the Petitioner seeking the following substantial reliefs:
"(a) Issue a writ of certiorari or any other writ or order or direction in the nature of Writ of certiorari setting aside quashing the letter dated 04.05.2021 bearing no. AAI/OPS/GHS/11/GP/2020 sent by the Respondent No. 1 (AAI) to the Petitioner No. 1 cancelling the Letter of Intent to Award dated 12.01.2021 and forfeiting the Bid Security, as arbitrary, unreasonable, mala fide and in violation of Article 14 of the Constitution of India;
(b) Issue a Writ of Mandamus or any other Writ or o
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 ....
Point of Law : It is the settled position in law that a Force Majeure clause is to be interpreted narrowly and not broadly. Parties ought to be compelled to adhere to contractual terms and conditions....
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.
The invocation of Bank Guarantees must be aligned with contractual terms; unauthorized invocation is deemed arbitrary.
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 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 highest bidder in a tender process does not have a vested right to award, as cancellation must align with commercial prudence and is permissible under administrative discretion.
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