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DELHI HIGH COURT
SATISH CHANDRA SHARMA, SUBRAMONIUM PRASAD
Saptagiri Restaurant Private Limited – Appellant
Versus
Airport Authority of India – Respondent
| Table of Content |
|---|
| 1. bidding requirements and history of rfp (Para 2) |
| 2. petitioner's argument on irrational rfp cancellation (Para 3 , 4 , 6) |
| 3. judicial review scope over tendering authority (Para 8 , 9) |
| 4. legal principles governing tender authority decisions (Para 10 , 11 , 12 , 13 , 14 , 15) |
| 5. respondent's justification for tender cancellation (Para 17 , 18 , 19 , 20 , 21 , 22) |
| 6. dismissal of writ petition (Para 23 , 24) |
JUDGMENT
Subramonium Prasad, J.
1. 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
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 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.
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 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 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 tender inviting authority has the right to accept or reject any bid and to annul the bidding process at any time prior to the award of contract without assigning any reason.
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.
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