Calcutta High Court

Tendering Authority's power to cure minor document deficiencies through clarifications is entitled to judicial deference.

FLEMINGO DUTYFREE SHOP PRIVATE LIMITED vs AIRPORT AUTHORITY OF INDIA AND ANR

Calcutta High CourtJUDGMENT: May 19, 20262 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

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. 1-4

The 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. 7-13

The 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. 8-15

During proceedings, Respondent No. 2 was declared the successful bidder

Source reference: para. 12
02

Issues

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. 13

2. 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. 14-15

3. Whether the Court should exercise its power of judicial review to interfere with the expert administrative decision of the tendering authority.

Source reference: para. 21
03

Law 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, 25

N.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, 25

Interpretation 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, 26
04

Reasoning

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. 26

The Court found no discrimination because the opportunity to cure deficiencies was extended uniformly to all bidders, including the Petitioner

Source reference: para. 26

Regarding 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. 31-33

The 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, 28

The 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. 29
05

Holding

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. 31

The final holding established that the Petitioner failed to demonstrate arbitrariness or mala fides requisite for judicial intervention under Article 226

Source reference: para. 34

The writ petition was dismissed, and no relief was granted to the Petitioner

Source reference: para. 35
Calcutta High Court

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FLEMINGO DUTYFREE SHOP PRIVATE LIMITEDvsAIRPORT AUTHORITY OF INDIA AND ANR

Calcutta High Court · May 19, 2026

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