- (1.) This Appeal assails the Judgment dated 15.7.2004 of the High Court of Karnataka in Writ Appeal Nos. 5722-5723 of 2001 setting aside the judgment of the learned Single Judge dated 25.7.2001 who had allowed both the Writ Petitions and quashed the impugned Notification, holding that the awarding of contract of lease of FSLR and VP is bad in law. The factual matrix of the present case is that in pursuance of the budget speech of the Hon'ble Minister for Railways in the year 1999-2000, the Respondents issued a tender notice no. 3/2000-2001 (hereinafter referred to as 'impugned notice') on 19.6.2000, inviting sealed tenders from traders and other interested parties for leasing of Front Second class Luggage Rake of 4 or 8 tons and Ventilated Parcel Van of 18 tons capacity on the Broad Gauge on payment of lump sum rate for loading of parcels by certain trains for a period of two years.
(2.) The first compartment, immediately after the engine, is known as Front Second Class Luggage Rake (FSLR) and each FSLR consist of four different sections. The first section is meant for carrying goods/parcels of 4 tons capacity, followed by the section known as the 'Brake Van' which is occupied only by the guard. The third section is for carrying unreserved passengers, and the last section is again a luggage compartment with a capacity of 4 tons. Similarly, the last compartment in each train is known as Rear Second Class Luggage Rake (RSLR), which also consists of four sections similar to the FSLR. Further, if there is excess demand, a Ventilated Parcel Van (VP) is added to the train after reducing, if necessary, a passenger compartment so as not to exceed the maximum hauling capacity of the engine. The VP is meant exclusively for the purpose of carrying parcels and its normal capacity is 18 tons. The Respondents had noticed that in some trains, most of the time, the luggage capacity available in FSLR and RSLR was not being fully utilized resulting in loss of revenue. In view of this, as a matter of policy, it was decided by the Government of India to lease the luggage space in FSLR to traders and other interested persons after inviting tenders from them.
(3.) FSLR of Train no. 2627 Bangalore- New Delhi- Karnataka Express (Daily) [hereinafter 'Karnataka Express'] was leased for a period of two years at Rs. 19,800/- per 4 metric ton space per day. The lease was given on 24.7.2000 in favour of a company known as BIC Logistic Limited, in pursuance to a tender issued by the Respondents. The lessees agreed to pay for the two spaces each of 4 tons at that rate aggregating to Rs. 39,600/- per 8 tons per day. The Appellant filed Writ Petition No. 27568 of 2000 before the High Court of Karnataka, challenging the impugned notice. The Appellant is engaged in trading of grapes who contended that as a result of the Respondents leasing out the FSLR in the Karnataka Express, the Appellant was denied the facility of transporting grapes from Bangalore to New Delhi at the rates specified in the Coaching Tariff no. 24 Part III (Rates for Parcels & Luggage Traffic), which came into effect on 1.4.2000. Another trader of grapes filed Writ Petition No. 37150 of 2000 before the High Court of Karnataka on 27.11.2000 seeking to restrain the Respondent- Railways from charging any tariff other than that specified in Coaching Tariff No.24 Part III. The learned Single Judge by common Judgment dated 25.7.2001 allowed both the Writ Petitions and quashed the impugned notification, holding that the awarding of contract of lease of FSLR and VP is bad in law. Aggrieved by the decision of the learned Single Judge, the Respondents preferred two appeals.;