Allahabad HC: Victim Compensation under POCSO Act Cannot be Withheld For Lack of Injury Report  ||  MP HC: Diverting Goods From Delivery Point is Misappropriation under S.407 IPC  ||  Delhi HC: Bar Associations are Not ‘State’ under Article 12 as They Do Not Perform Public Functions  ||  Delhi HC: Pending Probate Proceedings Do Not Prevent Filing FIR For Alleged Will Forgery  ||  Ker HC: Dismissal For Default Alone Cannot Justify Rejecting Restoration Plea For Lack of Vigilance  ||  SC: Disclosure Statements Alone Cannot Secure Conviction Without a Complete Chain of Evidence  ||  Supreme Court Orders Reporting of Student Suicides and Bans Denial of Classes or Exams  ||  SC: Govt Can Exclude Overqualified Candidates From Posts Requiring Lower Qualifications  ||  SC: Contracts to Hire Global Speakers For Media Summits are Not Taxable as Event Management Services  ||  SC: Mandatory Injunction Suit Alone is Not Maintainable When Plaintiff’s Title is Disputed    

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