Case Note & Summary
The dispute arose from a writ petition filed by the Centre for Aviation Policy, Safety & Research (CAPSR) challenging the eligibility criteria set by the Airport Authority of India (AAI) for ground handling services at Group D airports. The AAI had issued a Request for Proposal (RFP) with specific technical and financial qualifications, which CAPSR argued were discriminatory and arbitrary, preventing many existing Ground Handling Agencies (GHAs) from participating. The High Court of Delhi ruled in favor of CAPSR, striking down the AAI's criteria. The AAI appealed, arguing that the High Court erred in entertaining the writ petition as CAPSR lacked locus standi and that the tender conditions were within the AAI's administrative discretion. The Supreme Court analyzed the legal principles surrounding judicial review of tender conditions, emphasizing that such terms are generally not subject to scrutiny unless they are arbitrary or discriminatory. The Court found that the High Court had overstepped its bounds by interfering with the AAI's decision-making process. Ultimately, the Supreme Court quashed the High Court's order, allowing the AAI's appeal and dismissing the writ petition filed by CAPSR.
Headnote
A) Administrative Law - Judicial Review of Tender Conditions - Scope of Judicial Review - Constitution of India, Article 226 - The High Court's interference with tender conditions was unwarranted as the terms set by the tendering authority are not subject to judicial scrutiny unless proven arbitrary or discriminatory. The Supreme Court held that the eligibility criteria were within the AAI's discretion and not arbitrary (Paras 6-12).
Issue of Consideration
Whether the High Court erred in allowing the writ petition challenging the tender conditions set by the Airport Authority of India.
Final Decision
The Supreme Court allowed the appeals, quashed the High Court's judgment, and dismissed the writ petition filed by the original writ petitioner.
Law Points
- Judicial review of tender conditions
- locus standi in writ petitions
- eligibility criteria for tenders
- discrimination in tender processes
- administrative discretion in tendering
