Santosh Enterprises vs Airports Authority Of India & Anr

,,,

VIBHU BAKHRU, J",,,

Issue notice. The learned counsel appearing for the respondents accepts notice. With the consent of the parties, the petition is taken up for hearing.",,,

Introduction,,,

The petitioner has filed the present petition, inter alia, impugning a notice dated 06.10.2018 captioned “Intimation of Disqualification & Show",,,

Cause Notice under Clause 4.16.3, 4.16.4 of RFE†(hereafter ‘the impugned notice’) issued by respondent no.2 [Executive Director",,,

(Commercial), Airports Authority of India (AAI)]. By the impugned notice, the petitioner was communicated the AAI’s (respondent no.1)",,,

decision to disqualify the petitioner for being empanelled for rendering Vehicle Parking Management Services at airports managed by the AAI. The,,,

petitioner has also been called upon to show cause as to why he should not be debarred from participating in future tenders floated by the AAI.,,,

The petitioner is engaged in the business of undertaking parking contracts and providing parking management services. It is stated that the AAI had,,,

awarded contracts to the petitioner for managing parking lots at three Airports: Bhopal Airport, Vishakhapatnam Airport and Banaras Airport. The",,,

said contracts have been terminated on the ground of fraudulent practice, allegedly adopted by the petitioner. The allegation is that the petitioner had",,,

submitted forged/fake bank guarantees to secure performance of the contracts awarded to him.,,,

In regard to the termination of the contract for providing services at the Bhopal Airport, the petitioner had already approached the Madhya Pradesh",,,

High Court at Jabalpur and has secured an interim order, which permits the petitioner to manage the parking lot in question subject to certain",,,

conditions.,,,

Factual background,,,

In April 2018, the AAI invited applications for empanelment in terms of a documents captioned “Request for Empanelment (RFE) of Agencies",,,

for vehicle Parking Management Services at AAI managed Airportsâ€. This would enable the AAI to scrutinise the eligibility of the applicants,,,

interested in providing Vehicle Parking Management Services, and such empanelment would enable the said contractors to bid for future contracts",,,

with the AAI. This is clear from Clause 1.2 of the RFE; the relevant extracts of which are set out below:,,,

“In order to simplify the Award/grant of Car Parking concession at AAI airports, AAI intends to scrutinize the candidature of interested car",,,

parking vendors w.r.t. Eligibility criteria laid down by AAI at CHQ level as one time exercise and empanel the qualified vendors who in turn will be,,,

allowed to participate in bid/RFP duty initiated by respective airports which would involve limited documents/information verification for award of,,,

license.,,,

The composite process of empanelment and RFP with limited information aims to standardize the technical evaluation as one time exercise and save,,,

valuable time in processing of tender resulting into time bound award/grant Car Parking License.â€​,,,

Pursuant to the aforesaid RFE, the petitioner submitted its offer. By a communication dated 26.07.2018, the petitioner was informed that he was",,,

“provisionally short listed for empanelment of Vehicle Parking Management Services at AAI Airportsâ€​.,,,

At the material time, the petitioner was already awarded contracts for managing parking services at three airports as stated above (Airports at",,,

Bhopal, Vishakhapatnam and Banaras).",,,

On 23.08.2018, the AAI issued a show cause notice to the petitioner in respect of the contract awarded to manage the parking at the Airport at",,,

Bhopal. The petitioner was informed that the Bank of India (hereafter ‘BOI’) had confirmed that the bank guarantees furnished by the,,,

petitioner were not issued by the bank and the petitioner was called to provide an explanation for the same. The petitioner was also put to notice that,,,

action could be initiated in terms of the contract.,,,

The petitioner was, thus, duly put to notice that BOI had denied that it had issued the bank guarantees furnished by the petitioner to the AAI.",,,

The petitioner sent a letter dated 24.08.2018 to BOI in this regard. BOI responded on 24.08.2018 confirming that none of the bank guarantees,,,

referred to (that is, the ones furnished to BOI) were alive.",,,

The petitioner responded to the show cause notice dated 23.08.2018 by a letter dated 27.08.2018. He submitted that bank guarantees submitted by,,,

him were genuine. He further asserted that issue charges/commission and bank guarantee processing fees was also deducted by BOI, which was also",,,

reflected in his bank accounts.,,,

By a letter dated 29.08.2018, AAI terminated the contract awarded to the petitioner for providing Vehicle Parking Management Services at the",,,

Bhopal airport.,,,

The petitioner has challenged the said termination before the Madhya Pradesh High Court at Jabalpur and has also secured an interim order.,,,

On 24.09.2018, AAI published the Final List of empanelled service providers and the petitioner’s name was not included in that list.",,,

Thereafter, AAI issued the impugned order.",,,

Submissions,,,

Mr Bakshi, the learned counsel appearing for the petitioner submits that impugned notice clearly states that the petitioner has been disqualified. He",,,

contended that the petitioner has not been afforded any opportunity of being heard before any such action has been taken by the AAI and the same,,,

was violative of the principles of natural justice. He further contended that the impugned notice has been issued to overcome the orders of the,,,

Madhya Pradesh High Court.,,,

Reasons and Conclusion,,,

Insofar as the action of blacklisting is concerned, the petitioner has been duly put to notice of the same and this Court has no reason to believe that",,,

the petitioner has not been afforded a reasonable opportunity of being heard, prior to the AAI has taken any action in that regard.",,,

Bank Guarantee

No.","Date of

Opened","Amount of

Guarantee","Date of

Closed

0120IPEBG16005,20-06-2016,"Rs. 87,37,737/-",28-06-2016

120IPEBG16008,08-07-2016,"Rs.74,62,000/-",12-07-2016

0120IPEBG16009,22-07-2016,"Rs.27,10,400/-",03-08-2016