Law:

Section:

Constitution of Pakistan (1973)-------Art.199---Constitutional petition---Maintainability---Contractual obligation---Vested right---Promissory estoppel, principle of---Applicability---Natural justice, principles of---Scope of applicability---Respondent company invited tenders for setting up a project, appellants furnished performance guarantee equivalent to 10% of contract price but thereafter respondent called for fresh tenders---Plea raised by appellants was that intent to award a contract by itself was a complete contract enforceable at law and that the same operated as promissory estoppel against respondent company---Validity---Final contract had not come into existence although certain steps towards the same had been taken by respondent company---Principle of promissory estoppel or legitimate expectancy were not attracted in facts and circumstances of such cases---Mere letters of intent to award contract would not constitute a concluded contract---There might be cases in which a contract might involve number of documents including exchange of correspondence between parties in process of finalization of award of contract---Principle of natural justice was not attracted in absence of infringement of any vested rights of appellants---Bids of appellants had not been confirmed finally, therefore, contract could not be said to have been completed---Even the lowest bid would not confer an absolute title for award of a contract---In mega projects host of other considerations become relevant to avoid any unnecessary risk---General letter of intent merely implied an intention to enter into a contract and authority to contractor to start work before completion of contract in anticipation of signing of contract with a right to contractor for compensation of work, if any, he had already done---Letter of intent could not be treated to be synonymous to a completed contract---Bid of no other bidder had been accepted and respondent company had decided quite justifiably to re-advertise tenders---Judgment passed by High Court in exercise of constitutional jurisdiction under Art.199 of the Constitution was correct to which no exception could be taken---Appeal was dismissed.…

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