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Supreme Court of India 2022-05-09 dismissed

Bench: 2 — Vineet Saran, J.K. Maheshwari

In Brief

GMR Airports Limited (GAL) was selected as the highest bidder in a transparent competitive bidding process for developing Nagpur Airport under a PPP model. The authority issued a Letter of Award on 07.03.2019 after GAL offered the highest revenue share. However, months later, when GAL sought execution of the Concession Agreement, the authorities annulled the bidding process citing financial concerns. The High Court quashed the annulment as arbitrary. The Supreme Court upheld this decision, holding that once a Letter of Award is issued and acknowledged, constituting a concluded contract, the bidding process cannot be arbitrarily annulled based on post-hoc financial objections. The Court emphasized that public authorities must adhere to transparent procedures and cannot exercise discretionary powers arbitrarily, even in contractual matters, as this violates Article 14 of the Constitution.

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Administrative Law Constitutional Law – Article 14 Government Contracts Public-Private Partnerships (PPP) Arbitrariness and Public Law Tender and Bidding Processes Writ Jurisdiction Natural Justice

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