JAYANTA KUMAR GHOSH Vs. UNION OF INDIA
LAWS(CAL)-2012-9-79
HIGH COURT OF CALCUTTA
Decided on September 05,2012

JAYANTA KUMAR GHOSH Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) THE petitioner responded to a tender notice issued by Indian Railway Catering and Tourism Corporation Limited (hereafter the Corporation) for operation and management of catering and on-board services on 2345-46, Saraighat Express and 2331-32, Himgiri Express trains (hereafter the said trains). THE Corporation by its letter dated November 23, 2006 conveyed to the petitioner the decision of awarding him licence for management of catering and on-board services on the aforesaid trains on payment of licence fee of Rs. 43,35,155.00 per annum, subject to other terms and conditions mentioned therein as well as the bid documents. THE bid documents provided that term of licence for pantry cars would be five years from the date of commencement of services and that there shall be no extension.
(2.) THE petitioner claims that he complied with all terms and conditions and started rendering services from January 4, 2007 to the full satisfaction of all concerned including the passengers who boarded the said trains. The five-year period of the licence was to expire on January 3, 2012. During the subsistence of the licence, control in respect of catering and onboard services on trains exercised by the Corporation was transferred to the Zonal Railways. Catering Policy, 2010 was introduced on July 21, 2010 by the Railway Board (hereafter the Board) and the Zonal Railways were advised by the Board to renew all agreements, which had expired or were due for expiry in the next six months subject to a maximum extension of six months from July 21, 2010 by circular dated August 9, 2010. This was followed by the Board 's letters dated December 29 and 30, 2010, February 2, 2011 and July 1, 2011 whereby it was proposed that further extension may be granted for a period of six months till January 21, 2012 or until finalisation of standard bidding documents (hereafter SBD), whichever is earlier, with a view to ensure uninterrupted catering services to the passengers based on satisfactory performance and subject to payment of all dues and withdrawal of Court cases, if any. Ultimately, the Board by letter dated December 30, 2011 conveyed to the Chief Commercial Managers of all the Zonal Railways, inter alia, to the following effect: "Based on the requests of the Railways the matter has been examined by Board. Since the clarification/modification in the SBD guideline is under review and will take some time, in such circumstances it has been decided that Zonal Railways may permit further extension to mobile catering contracts for a period of one year w.e.f. 21.01.2012 or until the finalization of new contracts based on SBD guidelines issued by Board from time to time, whichever is earlier, with a view to ensure uninterrupted catering services to the Railway passengers. " On December 23, 2010, an agreement was executed by and between the Chief Commercial Manager, Eastern Railway, Kolkata, the Corporation and the petitioner, recording that with the announcement of the Catering Policy, 2010 vide Commercial Circular No. 35/2010 dated July 21, 2010, the Railways shall progressively take over management of all mobile and static catering services including base kitchen in a phased manner and in pursuance of the directives of the said policy, Eastern Railway has taken over management of catering services of the said trains with effect from December 23, 2010. One of the terms and conditions of the agreement provided that the petitioner shall continue to provide catering services in the said trains till January 3, 2012 i.e. for the tenure awarded by the Corporation unless terminated earlier. The petitioner applied for extension for his licence on December 4, 2011. Responding to such application, the Deputy Chief Commercial Manager/Catg. & FM, Eastern Railway informed the petitioner by letter dated December 30, 2011 that the period of licence had been extended from January 4 to 20, 2012 or until finalisation of the new contracts based on SBD, whichever is earlier. The period of licence was further extended till February 20, 2012 by letter dated January 20/21, 2012 issued by the selfsame officer and on the same terms and conditions mentioned in his earlier letter on the subject. The petitioner, in terms of the Board 's letter dated December 30, 2011 applied for extension of one year on January 27, 2012.
(3.) ON or about February 3, 2012, a tender was floated by Eastern Railway for grant of licence for management of on-board and catering services in the said trains. Such tender, according to the petitioner, was a secret one issued to frustrate the pending application for extension dated January 27, 2012. A writ petition was filed before this Court challenging the action of the Eastern Railway in floating tender without disposing of the application for extension. Upon hearing the writ petition ex-parte on February 8, 2012, a learned judge of this Court was pleased to restrain the respondents from proceeding further. The writ petition came up for further consideration on January 16, 2012. Upon hearing the parties, it was disposed of with the following directions: "In view of the above noted situation, I dispose of the WP ordering as follows. The petitioner 's application for renewal of licence shall be decided giving him a reasonable opportunity of presenting his case and hearing. If there are allegations against the petitioner, then the Railway shall communicate them in writing giving the petitioner an opportunity of dealing with them in writing. Until one week after the decision dealing with the renewal application is given, the petitioner 's licence in force today shall remain in force. This shall not mean that the Railway will not be entitled to renew the licence for a longer period. No costs." ;


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