Freedom of contract in PPP projects

By Akshay Jaitly, Sakya Singha Chaudhri and Nayantara Nag,Trilegal
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The recent decision of Bombay High Court in Flemingo Duty-Free Shop v Union of India raises important issues regarding the higher judiciary’s power of review over the execution of public private partnership (PPP) projects by private companies. The high court’s judgment subjects even the commercial operations of private companies which are executing government contracts to the public law duty of equality and fairness of action.

The implications of the judgment are far-reaching, given the prevailing policy of the Indian government to award large contracts for essential public utility services to private players via the PPP route.

Akshay Jaitly Partner Trilegal
Akshay Jaitly
Partner
Trilegal

The case involved Mumbai International Airport Limited (MIAL), which was awarded a concession for the development and modernization of Mumbai international airport.

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Akshay Jaitly is a partner at Trilegal in Delhi where Sakya Singha Chaudhuri is a counsel and Nayantara Nag is an associate. The firm has offices in Delhi, Mumbai, Bangalore and Hyderabad and has over 100 lawyers, some of whom have experience with law firms in the United States, the United Kingdom and Japan.

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