In Brief
A government infrastructure authority issued a Letter of Award (LOA) to a bidder for a road construction project, followed by the bidder's acceptance. Later, the authority withdrew the LOA due to lack of necessary regulatory clearance. The bidder sought arbitration under the draft agreement's arbitration clause. The Supreme Court held that the LOA does not constitute a binding contract. Under the Indian Contract Act, acceptance must be absolute and unqualified; here, multiple steps remained before final execution. The RFP's disclaimer, schedule of bidding process, and the authority's reserved right to cancel at any stage meant disputes at the LOA stage fell within the exclusive jurisdiction of courts named in the bidding process clause, not arbitration. The Court upheld this principle, allowing the appeal.
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