Supreme Court Awards Rs. 6 Lakh to Man Acquitted After 6 Years, Faults UP Police Probe  ||  Supreme Court: High Courts Can Restore Power on 50% Deposit in Arbitrary Theft Assessments  ||  Supreme Court: Cooperative Society Cannot Deny RTI Records as Personal if Registrar Can Access Them  ||  SC: CoC Cannot Withdraw Approved Resolution Plan Over Improved Corporate Debtor Finances  ||  Delhi High Court: 24-Week Limit Alone Cannot Restrict Medical Termination of Pregnancy  ||  Allahabad High Court Rejects Challenge to 18% GST on Online Legal Database Services  ||  Madras High Court: FIR Registration Does Not Decide Guilt; Prior Hearing of Accused Not Required  ||  Kerala High Court Orders Speedy Prosecution Sanction Process in Sabarimala Gold Theft Case  ||  Allahabad HC: Missing RT-PCR Report Cannot Bar COVID-19 Compensation if Records Confirm Infection  ||  MP High Court Directs Indore Police to Deploy Volunteers for Reporting Noise Pollution Violations    

M/s Singh Caterers & Vendors & Anr. v. Indian Railways Catering And Tourism Corporation Ltd. - (High Court of Delhi) (20 Mar 2017)

For every minor irregularity, a tender is not to be cancelled

MANU/DE/0774/2017

Contract

Present writ petition has been filed challenging termination letter passed by Respondent-IRCTC terminating temporary license awarded to Petitioners for management of On Board Catering Services in Train on ground that, Petitioners had failed to accept award of temporary license and had not paid the security deposit and license fee within stipulated time. Respondent in terms of Clause 4.8 of tender document also debarred Petitioners from participating in future projects of Respondent, IRCTC for a period of one year and forfeited Standing Earnest Money Deposit (SEMD) of Rs.3 lakhs.

High Court is of view that cutting/overwriting in present case is not a violation of a mandatory condition and is not material as there is no ambiguity or discrepancy in bid amount. Petitioners bid despite cutting/overwriting clearly mentions the revised bid amount. In fact, revised bid amount has been mentioned clearly both in figures and in words.

It is settled law that for every minor irregularity, a tender is not to be cancelled. Petitioners cannot make a virtue out of their own mistake. However, High Court is in agreement with the learned counsel for Petitioners that punishment of debarment for a period of one year is not proportionate, especially keeping in view fact that the petitioners have been an empanelled contractor/caterer with Railways and is at the moment serving another train by way of On Board Catering Services.

The concept of proportionality of punishment is not unknown to law. The Supreme Court in Kulja Industries Limited vs. Chief General Manager, Western Telecom Project Bharat Sanchar Nigam Limited & Ors., has held permanent debarment from future contracts for all times to come may sound too harsh and heavy a punishment to be considered reasonable. Consequently, the punishment of debarment of Petitioners in the peculiar facts of present case is reduced to nine months w.e.f. 26th September, 2016.

Relevant : Kulja Industries Limited vs. Chief General Manager, Western Telecom Project Bharat Sanchar Nigam Limited & Ors

Tags : TEMPORARY LICENSE   TERMINATION   VALIDITY  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved