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2017 Supreme(Mad) 2181

IN THE HIGH COURT OF JUDICATURE AT MADRAS
M.DURAISWAMY, J.
M/s. Travel News Services (India) Private Limited, rep by its General Manger Sanjay Mittal, New Delhi – Petitioner
Vs.
Airports Authority of India (Southern Region), rep by its Regional Executive Director and Others – Respondents
W.P.Nos.7251 & 7252 of 2017 and W.M.P.Nos.7886, 7887, 10419 & 10492 of 2017
Decided On : 11-08-2017

Advocates Appeared:
For the Petitioner:Mr.P.S.Raman, Senior Counsel and Mr.C.Manishankar, Additional Advocate General for Mr.K.Krishnamoorthy
For the Respondent: Fr.Xavier Arulraj, Senior Counsel for Ms.A.Arul Mary, Mr.J.Sivanandha Raj, for Ms.Ridhima Sharma

Headnote:

Tender Contract - W.P. filed by the petitioner viz., Travel News Services (India) Private Limited to issue a writ of mandamus forbearing the 1st respondent from awarding the Letter of Award to the 3rd respondent and consequently, award the same to the petitioner, being the highest bidder, post disqualification of 3rd respondent at the technical evaluation stage - Petitioner is engaged in the business of Operation and Management of Travel Retail Shops, which sell and deal in Travel Retail Goods for sale at Airports and other places. The petitioner is operating such Travel Retail Shops, inter-alia, at various Airports in India, for which they have signed contracts thereof to operate with the Airports Authority of India and other Airport Operators of India – Held, 3rd respondent that even husband and wife do not automatically become related persons and cannot automatically assume mutuality of interest is concerned, the said proposition has been laid down in the judgments pertaining to the Central Excise matters. The said proposition is applicable to a case under Central Excise Act and cannot be applied to the tender process, which bars two close relatives participating in the tender process as per Clause-2.2.1(c)(vi) of the RFP - Bid submitted by the 3rd respondent is declared as contrary to the tender conditions of RFP dated October 2016. In the interest of justice, the respondents 1, 4 & 5 are at liberty to call for fresh tender and conduct the tender process in accordance with law following the terms and conditions of the tender without any deviations whatsoever – Ordered accordingly

ORDER:

W.P.No.7251 of 2017 has been filed by the petitioner viz., Travel News Services (India) Private Limited to issue a writ of mandamus forbearing the 1st respondent from awarding the Letter of Award to the 3rd respondent and consequently, award the same to the petitioner, being the highest bidder, post disqualification of 3rd respondent at the technical evaluation stage.

2. W.P.No.7252 of 2017 has been filed by the very same petitioner to issue a writ of declaration declaring that the bid submitted by the 3rd respondent pursuant to the Request For Proposal dated October 2016 is contrary to the tender condition of RFP dated October 2016.

3. Since the issues involved in both the Writ Petitions are common and are in respect of the very same tender notification, both the Writ Petitions are disposed of by this common order.

4. The brief case of the petitioner necessary for the disposal of the Writ Petitions is as follows:

(i) The petitioner is engaged in the business of Operation and Management of Travel Retail Shops, which sell and deal in Travel Retail Goods for sale at Airports and other places. The petitioner is operating such Travel Retail Shops, inter-alia, at various Airports in India, for which they have signed contracts thereof to operate with the Airports Authority of India and other Airport Operators of India. The 1st respondent floated a tender for Appointment of Master Concessionaire to Design, Build, Finance, Operate and Maintain General Retail Outlets at Chennai Airport (the tender) in October 2016. After the technical opening of the bid, the e-tender portal of the 1st respondent disclosed that the following entities have evinced interest in the bidding process and have submitted their bids:

(a)

Bhawar Lifestyle

2nd respondent

(b)

Evolve Business Ventures

3rd respondent

(c)

Krishna Pearls and Jewellers

 

(d)

Travel News Services India Private Limited

Petitioner

(e)

William Penn Private Limited

 

(ii) In the Request For Proposal (RFP), there is a Clause on Conflict of Interest among bidders for eligibility of bidders, which reads as follows:

Clause 2.2 Eligibility of Bidders:

2.2.1 For determining the eligibility of Bidders for their short-listing hereunder the following shall apply:

(c) A Bidder shall not have a conflict of interest (the “Conflict of Interest”) that affects the Bidding Process. A Bidder found to have a Conflict of Interest shall be disqualified. A Bidder shall be deemed to have a Conflict of Interest affecting the Bidding Process, if:

(vi) such Bidder, or any Associate thereof has a relationship with another Bidder, or any Associate thereof, directly or through common third party/parties, that puts either or both of them in a position to have access to each other information about, or to influence the Proposal of either or each other;

Clause 6 Fraud and Corrupt Practices

6.1 The Bidders and their respective Officers, employees, agents and advisers shall observe the highest standard of ethics during the Bidding Process. Notwithstanding anything to the contrary contained herein, the Authority may reject an Application without being liable in any manner whatsoever to the Bider if it determines that the Bidder has, directly or indirectly or through an agent, engaged in corrupt practice, fraudulent practice, coercive practice, undesirable practice or restrictive practice in the Bidding Process.

6.3 For the purposes of this Clause 6, the following terms shall have the meaning hereinafter respectively assigned to them:

(e) “Restrictive practice” means forming a cartel or arriving at any understanding or arrangement among Bidders with the objective of restricting or manipulating a full and fair competition in the Bidding Process.

(iii) Immediately after the opening of the Technical Bid and disclosure of list of entities who submitted their bids, on research, th






























































































































































































































































































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