VidhiSangh

Supreme Court of India · 30/09/2022

AIRPORT AUTHORITY OF INDIA versus CENTRE FOR AVIATION POLICY, SAFETY & RESEARCH (CAPSR) & OTHERS

[2022] 13 S.C.R. 451 · 2022 INSC 1047

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Summary

The Airports Authority of India invited tenders for ground handling at smaller airports. A non-profit aviation advocacy body challenged three conditions: clustering 49 Group D-1 airports into four regions, counting only experience with scheduled flights, and a minimum turnover (cut during the case from Rs. 30 crore to Rs. 18 crore). The Delhi High Court struck them down. The Supreme Court reversed. The NGO was not an aggrieved party, no ground handling agency had objected, and the petition was not a PIL, so it failed for want of locus standi. On the merits, tender terms are for the tendering authority and can be reviewed only if arbitrary, discriminatory, mala fide or biased. AAI had justified each condition, and the MSME procurement orders did not govern this concession.

Issues

  1. Whether a non-profit research and advocacy organisation, not itself a bidder and not suing in public interest, had locus standi to challenge tender conditions under Article 226.
  2. Whether the regional clustering of airports, the scheduled-flight experience criterion and the turnover threshold in AAI's ground handling tenders were open to interference as arbitrary or discriminatory.
  3. Whether the MSME procurement orders of 2012 and 2018 governed the tender.

Provisions considered

Held

Result

Appeals allowed. The High Court's judgment and its order refusing review were set aside, and the writ petition was dismissed. No costs.

Judgment PDF: Supreme Court of India, [2022] 13 S.C.R. 451.