LAWS(SC)-2006-11-59

RELIANCE AIRPORT DEVLOPERS PVT LTD Vs. AIRPORT AUTHORITY OF INDIA

Decided On November 07, 2006
RELIANCE AIRPORT DEVELOPERS PVT. LTD. Appellant
V/S
AIRPORT AUTHORITY OF INDIA Respondents

JUDGEMENT

(1.) CHALLENGE in this appeal is to the judgment of a Division Bench of the Delhi High Court. Decision taken by a group of Ministers in a matter of joint venture partnership as a part of the privatization policy of the Government of India was assailed before the High Court.

(2.) ACCORDING to the appellant, the project has to be grounded because of several major defects which would render the projects take off disastrous. The respondents on the other hand contend that minor technical flaws, if any, have been rectified before the ultimate decision was taken and the project has been rightly held to be in a fit condition to take off.

(3.) THE primary stand of the appellant is that the EGOIW GDI should have accepted the recommendations of the EC and should not have asked the GETE to make further examination. It is submitted that GETE did not examine the queries relating to GMR as raised by the IMG and the reduction of technical qualification from 80% to 50% was impermissible. It is also submitted that the appointment of GETE itself was illegal and unauthorized. THE High Court proceeded on the basis as if EGOM had absolute discretion in the matter of choosing the modalities. It is also submitted that the uniform pattern of assessment has not been done and while reducing the marks so far as the appellant is concerned, similar procedure has not been adopted so far as GMR and GVK are concerned. In the initial assessment, only the GMR and the appellant had crossed the bench mark. If in respect of one airport GMR was given the option of matching the financial bid of the appellant, in respect of the other airport similar option should have been given to the appellant who was at the relevant point of time and even now willing to match the financial bid of GVK. THEre was no justification for reduction of standard from 80% to 50%, particularly when at all stages EGOM had emphasized that there shall not be any compromise with quality. THE argument that any bidder who had crossed the mandatory requirement stage would be competent to execute the contract is completely erroneous since in that case there was no need to fix the high bench mark of 80%. Appellant had scored over 80% on the development side and fell short of merely 6% less than 80% on the management side. THE award of contract to the third ranked bidder i.e. GVK who had scored only 59% on the development side and whose bid had been adversely commented upon by all committees is against public interest. THE bench mark of 80% had been approved by the EGOM. THE EC expressly recommended against lowering the bench mark and the EGOM in its meeting on 5.12.2005 had also wanted the bench mark to remain at 80%. GETE had also not recommended lowering of the bench mark.