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2016 (10) TMI 1292

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..... f time cannot be entertained as in the opinion of this Court, present proceedings cannot be used for renegotiation of contract and for fixing new dates for deposit of licence fee. In any event, if the respondent-IRCTC has wrongly debarred the petitioner, as claimed by the petitioner, then in the opinion of this Court, the petitioner would only be entitled for damages - this Court is in agreement with the contention of learned counsel for the petitioner that the punishment of debarment for a period of one year is not proportionate to the facts of the present case, especially keeping in view the fact that the petitioner has been an empanelled contractor/caterer with the Railways for more than ten years and is at the moment running five base kitchens. The punishment of debarment of the petitioner in the peculiar facts of the present case is reduced to one month w.e.f. 28th September, 2016. The amount of ₹ 15,55,799/- deposited by the petitioner with regard to Patna Ranchi Jan Shadabdi shall be refunded to the petitioner within a period of one week - petition disposed off. - W.P.(C) 9159/2016, 9158/2016 & C.M.Nos.37083-37084/2014, 37081-37082/2016 - - - Dated:- 5-10-2016 - .....

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..... License Fee, in advance, as advised by IRCTC, for the period of temporary license, extended of IRCTC. In case Licensee fails to deposit the License fee within the stipulated time frame, IRCTC shall charge interest @ 18% per annum calculated for the number of days of default and in case of inordinate delay IRCTC may initiate the termination proceeding to terminate the contract at the risk and cost of licensee. 5. Mr.Ahluwalia lastly states that the punishment of debarment for one year is very harsh in the facts of the present cases. He points out that the petitioner has been an empanelled caterer for the Railways since 2005 and as of today is running five Base Kitchens and is employing two hundred and fifty employees. 6. Per contra, learned counsel for the respondent-IRCTC states that as the petitioner is an empanelled caterer, it has furnished its email address to the respondent-IRCTC for the purpose of correspondence. He states that in the present case temporary licence of catering for three trains, namely, Amritsar Haridwar Jan Shatabdi, Patna Ranchi Jan Shadabdi and Durg Nizammudin Sampark Kranti Express were issued for short duration. .....

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..... Section two 1.1 Payment of License fee Bidders are required to quote License Fee excluding service tax as applicable, for a period of 06 months. Successful bidder will be required to deposit quoted license fee for a period 06 months along with applicable Service Tax thereon, in advance, before start of work and as advised by IRCTC. 11. In fact, even while submitting its bids, the petitioner had specifically agreed that on account of non-acceptance of Award or on account of nonfulfillment of the tender conditions within the prescribed time, it shall stand debarred by the respondent-IRCTC from participation in its future tenders for a period of one year. Consequently, in the opinion of this Court, no specific notice stating that the petitioner would be debarred on account of non-payment of licence fee was required. 12. This Court is also of the opinion that Clause 6.2 has no application to the facts of the present case as it only confers discretion upon IRCTC to condone delay in depositing the licence fee, post commissioning of the licence and that too, upon payment of in .....

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..... to decide contractual disputes. The tenderer or contractor with a grievance can always seek damages in a civil court. Attempts by unsuccessful tenderers with imaginary grievances, wounded pride and business rivalry, to make mountains out of molehills of some technical/procedural violation or some prejudice to self, and persuade courts to interfere by exercising power of judicial review, should be resisted. Such interferences, either interim or final, may hold up public works for years, or delay relief and succour to thousands and millions and may increase the project cost manifold. Therefore, a court before interfering in tender or contractual matters in exercise of power of judicial review, should pose to itself the following questions: (i) Whether the process adopted or decision made by the authority is mala fide or intended to favour someone; OR Whether the process adopted or decision made is so arbitrary and irrational that the court can say: the decision is such that no responsible authority acting reasonably and in accordance with relevant law could have reached ; (ii) Whether public interest is affected. If the answers are in the nega .....

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