In Brief
This case concerns a concession agreement between the National Highways Authority of India (NHAI) and a contractor (Gwalior Jhansi Expressway Limited) for highway widening works. When the contractor failed to complete the work, NHAI re-tendered the balance work. An earlier arbitral order had granted the contractor a Right of First Refusal (ROFR) to match the lowest bid, but did not expressly exempt it from participating in the new tender process. The contractor did not participate in the bidding. The Supreme Court held that ROFR does not create an implicit right to match bids without participating in the tender process—such exemption must be express. The Court upheld the fundamental principle that tender processes require transparency, fair competition, and compliance with prescribed conditions, and that non-participating parties cannot acquire rights through ROFR. The appeal was allowed and the arbitral and High Court orders were quashed."
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