SUPREME COURT OF INDIA
VINEET SARAN, J.K. MAHESHWARI, JJ.
Mihan India Ltd. - Appellant
Versus
GMR Airports Ltd. & Ors. - Respondents
Civil Appeal No. 3699 of 2022 [Arising Out of Special Leave Petition [C] No. 15556 of 2021]
With
Airport Authority of India - Appellant
Versus
GMR Airports Ltd. - Respondent
Civil Appeal No. 3701 of 2022 [Arising Out of Special Leave Petition [C] No. 5686 of 2022] Diary No. 23479 of 2021
With
Government of Maharashtra - Appellant
Versus
GMR Airports Ltd. - Respondent
Civil Appeal No. 3702 of 2022 [Arising Out of Special Leave Petition [C] No. 16737 of 2021]
With
Union of India - Appellant
Versus
GMR Airports Ltd. - Respondent
Civil Appeal No. 3700 of 2022 [Arising Out of Special Leave Petition [C] No. 5687 of 2022] Diary No. 23477 of 2021
Decided On : 09-05-2022
| Table of Content |
|---|
| 1. overview of appeals against high court judgment. (Para 2 , 3 , 4) |
| 2. background facts regarding nagpur airport transfer and bidding process. (Para 5 , 6 , 7 , 8) |
| 3. parties’ arguments regarding annulment and implications. (Para 10 , 11 , 12 , 13) |
| 4. court's observations on issues arising for consideration. (Para 14 , 15 , 16) |
| 5. court analysis on the legality of annulment and bidding process. (Para 24 , 45) |
| 6. final ruling and conclusion of the court. (Para 52) |
JUDGMENT :
1. Leave granted.
2. These four appeals have been filed challenging the judgment dated 18.08.2021 of the Nagpur Bench of the Bombay High Court whereby the Writ Petition of the respondent No. 1- GMR Airports Limited (for short 'GAL') and GMR Nagpur International Airport Limited (for short 'GNIAL') filed against MIHAN India Limited (for short 'MIL') and Government of Maharashtra (for short 'GoM') has been allowed. The High Court set-aside the impugned communication of annulling the bidding process and directed to take further necessary steps as per prayer clause (b) of the Writ Petition.
3. The appeal arising out of Special Leave Petition (C) No. 15556 of 2021 has been filed by MIL (which was the respondent no. 1 before the High Court) and appeal arising out of Special Leave Petition (C) No. 16737 of 2021 has been filed by the GoM (which was the respondent No.2 before the High Court). The other two appeals arising out of Diary No. 23479 of 2021 and Diary No. 23477 of 2021 have been filed by the Airports Authority of India (for short 'AAI') and Union of India (for short 'UoI') respectively, which were not the party before the High Court and hence applications for permission to file the special leave petitions have been filed, which are granted in both the special leave petitions.
4. Since, the order under challenge in all the appeals is the same and the facts in the said appeals are common, however Special Leave Petition No. 15556 of 2021 titled MIHAN India Limited versus GMR Airports Limited & Ors. is being treated as the lead petition.
5. Briefly, the facts relevant for the purpose of the appeals are that the Nagpur International Airport (for short 'Nagpur Airport') was being run by the AAI. On the initiative of GoM to develop a multi-modal international passenger and cargo hub airport at Nagpur, for brevity sake referred as 'MIHAN', in coordination with Government of India (for short 'GoI'),Ministry of Civil Aviation (for short 'MoCA'), AAI and Indian Air Force through Ministry of Defence has prepared the report for MIHAN project. On 18.12.2006, GoI through MoCA and AAI on one side; and GoM and Maharashtra Airport Development Company (for short 'MADC') on the other side, entered into a Memorandum of Understanding (for short 'MoU') for the purpose of establishing a Joint Venture Company (for short 'JVC') and transferring the Airport to the said JVC to develop it into MIHAN. As per the said MoU, MADC shall have 51% of the equity and AAI 49% equity of the JVC. Pursuant to the MoU, the AAI and MADC entered into a Joint Venture Agreement (for short 'JVA') on 22.02.2009 for the purpose of incorporating a JVC, which is known as MIL. As per the terms and conditions of the MoU dated 18.12.2006 and the JVA dated 22.02.2009, MIL took over the Airport from AAI on 07.08.2009.
6. As per the instructions of GoI, it was thereafter, decided that for the upgradation, modernization, operation and maintenance of the Airport (subsequently named as Dr. Babasaheb Ambedkar International Airport, Nagpur) global tenders were to be called by MIL by inviting bids from private parties as per the Request for Qualification (for short 'RFQ') for selection of private developers, through public private participation (for short 'PPP') on Design, Build, Finance, Operate and Transfer (DBFOT) basis. On 11.12.2017, GoM constituted a High-Powered Project Monitoring and Implementation Committee (for short 'PMIC') consisting of eleven Members, being officers of GoM, GoI, MADC and AAI and the C
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 annulment of a tender by the NHAI was justified due to the petitioner's failure to comply with procedural requirements, affirming the authority's discretion in public procurement.
The rejection of bids by public authorities must adhere to the principles of fairness, reasonableness, and non-arbitrariness as mandated by Article 14 of the Constitution of India.
scope of the judicial review in contractual matters is quite limited. The legal position is settled that judicial review is not so much concerned with the correctness of the ultimate decision as it i....
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....
Judicial review in tender matters is narrowly circumscribed. A court should only interfere if the procuring authority's action is arbitrary, irrational, or malafide. Mandatory tender conditions must ....
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