HOTEL PRESIDENCY Vs. COCHIN INTERNATIONAL AIRPORT LTD.

JUDGEMENT

(1.) The Cochin International Airport Ltd., (1st respondent herein) had invited tenders for establishing and operating a restaurant in the International Terminal of the Airport by Ext. P2 notice from reputed For/Five Star Hotel operators. General conditions of the tender indicated that the bid was for royalty, on percentage of gross turnover, the minimum being specified as 10%. Tender was to remain open for ninety days from the date of opening, evidently for negotiations. The licence was stated to be for five years, and royalty payable quarterly.

(2.) The petitioner had submitted tender on 22.11.1999. Two other participants also had submitted tenders. It has come out that they had offered 31% of the gross turnover. They were thereafter asked to furnish additional details, however, by Ext. P4 mainly the expected turnover and the expenditure for facilitating the working out of the royalty percentage. The relevant text of the letter is as follows:

(3.) The petitioner had been running the restaurant during the above period, as required by the first respondent, but submits that during the pendency of the petition, they had been directed to discontinue, and the operations are now remaining suspended. The petitioner submits that their willingness to work the restaurant at short notice at the initial stages has been ignored: that they had an excellent back record, that the second respondent had been non cooperative in the ventures of the first respondent, and the proposal to reject the offer can be understood as a mala fide action.