IN THE HIGH COURT OF JAMMU & KASHMIR AND LADAKH AT JAMMU
Tashi Rabstan, J.
Rakesh Gupta – Petitioner
Versus
Airports Authority of India and Ors. – Respondents
WP(C)No.2761/2021 and CM No.9336/2021
Decided On : 22-03-2022
Government Contract-Tender-The moment petitioner responded to NIT flouted by respondent-authority, petitioner made himself bound by terms and conditions of NIT-He cannot, when he saw himself not amongst successful bidder(s), be permitted to turnaround and dispute veracity of any of terms and conditions of NIT and/or decision taken by respondent in line with NIT-Obtaining of any situation, including COVID, as projected by petitioner did not and cannot be said to have impacted petitioner alone, but whole globe and respondent no.4 is not exception, yet he answered prerequisites of NIT-That aspect of matter cannot be ignored and respondent no.4 cannot be said to have not been impacted by COVID-If petitioner says and seeks any relaxation in view of COVID, then in such circumstances, it is not only petitioner but other similarly situated persons, having same turnover as projected by petitioner, were/are required to be called to compete for NIT-Petitioner cannot be allowed to challenge impugned decision dated 6th December, 2021 whereby his technical bid has been rejected on the ground that it does not conform to terms and conditions of Tender Notice. (Para 10)
Result-Petition dismissed.
JUDGMENT :
Tashi Rabstan, J.-Petitioner through the medium of instant petition has sought quashment of decision dated 6th December 2021, taken by respondents 1 to 3 whereby the petitioner has been technically disqualified in reference to Request for Proposal (RFP)–Tender E-Bid No.2021-AAI-82001-1 issued on 13.07.2021 for concession to design, fit-out, finance, develop, market, operate, maintain and manage the food and beverage outlets at Civil Airport, Jammu and Technical Bid of Respondent No.4 was accepted. He also sought quashment of decision contained in Minutes of LCAC meeting held on 7th December 2021 taken by the respondents 1 to 3 whereby while rejecting the technical bid of the petitioner, technical as well as financial bid of Respondent No.4 have been accepted notwithstanding the fact that the financial bid of the petitioner was much higher than the respondent No.4. The petitioner has also prayed for quashment of Letter of Intent No.AAI/ JU/Coml/1409/MCFB/3380 dated 12.12.2021 for concession to design, fit-out, finance, develop, Market, Operate, Maintain and Manage the food and Beverage outlets at Jammu Civil Airport whereby the aforesaid concession/contract has been awarded to Respondent No.4 and also prayed for a direction to the Respondents to declare the petitioner qualified for allotment of aforesaid contract by accepting the technical bid as well as financial bid of the petitioner being higher than the respondent no. 4 and being fully in consonance with the terms and conditions stipulated in the tender document i.e. tender Reference No.AAI /JU/Coml/1409/MCFB Tender E-bid No. 2021-AAI-82001-1.
2. The brief facts leading to filing of the present writ petition, as stated by the petitioner therein, are that respondent no.1 was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India and therefore, respondent no.1 being a statutory body/State within the meaning of Article 12 of the Constitution of India and amenable to writ jurisdiction; that respondent no.1 intended to grant concession of design, fit out, finance, develop, market, operate, maintain and manage the Food and Beverage outlets at the concessioned premises in the Civil Airport Jammu and in this behalf respondent no.1-Autohrity decided to carry out a competitive bidding process for selection of a bidder to whom the concession may be awarded and issued Request for Proposal (RFP) for aforesaid contract/concession under Tender Reference no.AAI/JU/ Coml/1409/ MCFB Tender E-Bid no.2021-AAI-82001-1 on 13th July 2021; that allotment of contract for the above concession was of two-tier system, viz. technical bid and financial bid, and to be eligible for being a selected bidder, a bidder was required to demonstrate both technical capacity and financial capacity and in this regard was to satisfy the criteria as shown in clause 2.1.4 of RFP. The petitioner claims that being fully eligible and qualified as per the terms and conditions of RFP (Annexure-II) he also applied for allotment of the contract/concession afore-stated in his favour as he duly fulfilled the technical eligibility criteria defined in clause 2.1.4 of RFP. It is stated that Petitioner is currently functioning as a Flight Kitchen Operator as is requirement of sub-clause B (iv) besides is having more than two years of experience in the Food and Beverage services business as on 13.07.2021, as is the requirement of sub-clause (A) and the Petitioner thus fully fulfilled the requirements of clause 2.1.4 (I) (A) and B (iv) of REP. It is also contended that Station Manager Air India Ltd. has issued Certificate dated 26th October 2021 certifying that the Petitioner is providing in-flight catering services since 01.02.2016 to 31.01.2018 and since 01.02.2018, the same agreement has been extended o
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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 court emphasized the limited scope of judicial review in tender matters, the importance of punctilious and rigid enforcement of tender terms, and the uniform application of tender requirements to....
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.
Judicial review in tenders limited to mala fides, arbitrariness, irrationality impacting public interest; courts defer to authority's interpretation of eligibility unless perverse.
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.
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