Nagpur airport: Bombay HC quashes order cancelling award granted to GMR group

"We find that the impugned communication is arbitrary, unfair and unreasonable and, therefore, it deserves to be quashed and set aside," the court said

August 19, 2021 11:07 am | Updated 11:36 am IST - Nagpur

The court has also ordered Maharashtra Airport Development Company and the Airports Authority of India to execute a concession agreement with the GMR group in six weeks.

The court has also ordered Maharashtra Airport Development Company and the Airports Authority of India to execute a concession agreement with the GMR group in six weeks.

The Nagpur Bench of Bombay High Court here on Wednesday quashed a March 2020 communication issued by a joint venture firm cancelling an award granted to GMR Airports for upgradation and operation of the Nagpur's Babasaheb Ambedkar International Airport, calling it "arbitrary and unfair".

A Division Bench of Justices Sunil Shukre and Anil Kilor of the HC's Nagpur Bench said the communication, issued to GMR Airports Ltd by MIHAN India Ltd, a joint venture between Maharashtra Airport Development Company and the Airports Authority of India, deserved to be quashed and set aside.

"We find that the impugned communication is arbitrary, unfair and unreasonable and, therefore, it deserves to be quashed and set aside," the court said.

The communication was not "sustainable in the eye of law", the Bench noted.

The court has also ordered MIHAN to execute a concession agreement with the GMR group in six weeks.

The HC order came on a petition filed by GMR Airports challenging the action of MIHAN in annulling the bidding process for upgradation, modernisation, operation and management of the Nagpur international airport despite the process having come to an end and the petitioner (GMR) already having been awarded the project by way of a Letter of Award on March 7, 2019.

As per the plea, MIHAN was planning to issue fresh tenders for the project.

MIHAN had, however, claimed the communication sent to the petitioner on March 7, 2019, was only a bid acceptance letter and not a letter of award.

The company said the communication clearly stated that the acceptance of the bid was conditional and required approval from the Union Ministry of Civil Aviation.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.