Mihan India Ltd. Vs GMR Airports Ltd. & Ors. (Supreme Court of India)
This matter arises out of four connected civil appeals filed before the Supreme Court of India against the judgment dated 18.08.2021 passed by the Nagpur Bench of the Bombay High Court in Writ Petition No. 1723 of 2020. The primary appeal was filed by MIHAN India Limited (MIL), alongside appeals by the Government of Maharashtra (GoM), Airports Authority of India (AAI), and Union of India (UoI). The central issue pertains to the validity of MIL’s communication dated 19.03.2020 annulling the bidding process for the upgradation, modernization, operation, and maintenance of Dr. Babasaheb Ambedkar International Airport, Nagpur (MIHAN Project) after issuing a Letter of Acceptance/Award (LoA) to GMR Airports Limited (GAL).
The Nagpur Airport was initially managed by AAI. To develop it into a multi-modal international passenger and cargo hub, a Joint Venture Company (JVC)—MIHAN India Limited (MIL)—was incorporated in 2009 with Maharashtra Airport Development Company (MADC) holding 51% equity and AAI holding 49% equity.
MIL took over the airport in August 2009. A global tender process on a Design, Build, Finance, Operate, and Transfer (DBFOT) basis under Public-Private Partnership (PPP) was subsequently initiated. Bids were invited via Request for Proposal (RFP), and GAL emerged as the highest bidder offering a 5.76% revenue share. Following negotiations before the High-Powered Project Monitoring and Implementation Committee (PMIC), GAL revised its revenue share offer to 14.49%. On 07.03.2019, MIL issued a letter accepting the revised bid subject to approval for land alienation and Special Purpose Vehicle (SPV) formation. GAL accepted and acknowledged this letter on a duplicate copy on 12.03.2019. Draft Concession Agreements were subsequently exchanged, and space was allotted to GAL. However, after a prolonged delay in formal execution of the Concession Agreement, GAL filed Writ Petition No. 1343 of 2020.
