Facts
The Petitioner, the incumbent duty-free operator at Netaji Subhas Chandra Bose International Airport, challenged the tender evaluation process for a fresh Request for Proposal (RFP) dated 20.01.2026
Source reference: para. 1-4The Petitioner alleged that Respondent No. 1 (AAI) exhibited hostile discrimination by allowing Respondent No. 2 (Nuance Group) to rectify bid deficiencies—specifically unsigned Chartered Accountant documents and the use of digital instead of manual signatures—while denying similar indulgence to the Petitioner
Source reference: para. 7-13The Petitioner contended that AAI violated the AAI Commercial Manual, 2025, by communicating via private email instead of the Central Public Procurement (CPP) Portal and utilizing an undisclosed third-party email domain
Source reference: para. 8-15During proceedings, Respondent No. 2 was declared the successful bidder
Source reference: para. 12Issues
1. Whether the Respondent Authorities adopted inconsistent standards and practiced hostile discrimination in violation of Article 14 by permitting Respondent No. 2 to rectify bid deficiencies post-deadline.
Source reference: para. 132. Whether the deviation from the mandatory CPP Portal communication method and the use of private/third-party email domains invalidated the transparency and integrity of the procurement process.
Source reference: para. 14-153. Whether the Court should exercise its power of judicial review to interfere with the expert administrative decision of the tendering authority.
Source reference: para. 21Law Applied
The Court primarily applied the principles of limited judicial review in contractual matters as established in Tata Motors Ltd. v. The Brihan Mumbai Electric Supply & Transport Undertaking (2023) 19 SCC 1, which mandates judicial restraint and deference to the tendering authority's technical expertise
Source reference: para. 21, 25N.G. Projects Ltd. v. Vinod Kumar Jain (2022) 6 SCC 127, holding that interference is only warranted if the decision-making process is vitiated by palpable arbitrariness, mala fides, or patent illegality
Source reference: para. 21, 25Interpretation of Clause 7.8.5 of the RFP and the AAI Commercial Manual, which expressly allow the authority to seek "shortfall documents" or clarifications to prevent rejection on hyper-technical grounds
Source reference: para. 19, 26Reasoning
The Court reasoned that the power to seek shortfall documents under Clause 7.8.5 of the RFP is a deliberate contractual provision meant to ensure substantive competition
Source reference: para. 26The Court found no discrimination because the opportunity to cure deficiencies was extended uniformly to all bidders, including the Petitioner
Source reference: para. 26Regarding Respondent No. 2’s signatures, the Court determined that the missing counter-signatures on two pages of a voluminous document were "minor and curable" deficiencies, and the authority's decision to allow rectification was an expert judgment entitled to deference
Source reference: para. 31-33The deviation from the CPP Portal was justified by a documented "technical glitch" and cured by marking copies to all bidders, thereby maintaining transparency
Source reference: para. 20, 28The Court dismissed the "third-party email" allegation as vague and unsubstantiated, noting that the Petitioner failed to prove any actual prejudice or breach of confidentiality
Source reference: para. 29Holding
The Court answered the issues in the negative, holding that the tender evaluation was conducted fairly and in accordance with the RFP terms
The Court affirmed that the tendering authority is the best judge of the materiality of bid deficiencies
Source reference: para. 31The final holding established that the Petitioner failed to demonstrate arbitrariness or mala fides requisite for judicial intervention under Article 226
Source reference: para. 34The writ petition was dismissed, and no relief was granted to the Petitioner
Source reference: para. 35Original Court PDF
FLEMINGO DUTYFREE SHOP PRIVATE LIMITEDvsAIRPORT AUTHORITY OF INDIA AND ANR
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