IN THE HIGH COURT OF KARNATAKA
M. Nagaprasanna, J.
Suvarna Karnataka Railway Catering Vendors Association (R) Regd. Under Karnataka Societies Registration Act, 1960 Represented By The President Siddaraju S. – Appellant
Versus
The Chairman The Railway Board, The Ministry of Railways, Rail Bhawan & Ors. – Respondents
Writ Petition No.7127 of 2024 (GM - TEN)
Decided On : 19-03-2024
ORDER
M. Nagaprasanna, J. - The petitioner/Suvarna Karnataka Railway Catering Vendors Association (R) (hereinafter referred to as 'the Association' for short) is knocking at the doors of this Court seeking quashment of E-Open Tender for the provision of onboard catering services in trains for a period of 5 years extendable by another two years and also for quashment of several conditions in the addendum to the Catering Policy of 2017 dated 14-11-2023.
2. Heard Sri M.G.Kumar, learned counsel appearing for the petitioner and Sri Tushar Mehta, learned Solicitor General of India appearing for the respondents.
3. The facts, in brief, germane are as follows:-
The petitioner/Association claims to have been registered in the year 2022 and further avers that it is a conglomerate of catering contractors who have been in the Railway Catering services for the past 25 to 30 years. The catering services in the Railways are regulated by the policies issued by the Railways from time to time for the purposes of catering in the trains. The latest of the policy was issued in the year 2017 in order to improve quality of food and catering services. Pursuant to the policy subsisting, the Railways annually call for empanelment of licensees who are eligible contractors and have been granted catering contract licences. In the year 2021, the 2nd respondent issues a notice inviting expression of interest calling for empanelment of provision of onboard services in various types of trains. Under the expression of interest, 6 categories of empanelment based on trains were enunciated, which are Categorized as GTV, RSD, M1, M2, M3 and TSV. Likewise, expression of interest was also called for the years 2022, 2023 and 2024. The members of the petitioner/Association claim to have been empanelled pursuant to their registration of expression of interest. Therefore, it is not in dispute that the petitioners are empanelled catering contractors. Empanelment and awarding of contract of tender are two different aspects in terms of the policy enunciated by the Railways.
4. On 14-11-2023, the Railway Board amends the Catering Policy 2017 insofar as paragraphs 1 and 3 are concerned in terms of its addendum. Two clauses that are amended form the subject matter of present lis. They are clustering of trains and eligibility criteria for participation in tender. Pursuant to the addendum as aforesaid, the Railways have notified an e-open tender on 07-02-2024. The notification of e-open tender is called in question in the subject petition.
5. The learned counsel for the petitioner Sri M.G. Kumar would vehemently contend that the policy that they have brought by way of amendment on 14-11-2023 is not even followed by them. Pursuant to the policy the members of the petitioner/Association would all be affected as they have the contracts signed in the year 2019 for a particular tenure and their tenure would be affected. He would term the policy to be arbitrary by quoting that division of the policy into clusters is contrary to Article 14 of the Constitution of India. According to the learned counsel, cluster 'A' has been formed solely with the object of creating monopoly in favour of few players and clustering of premium prepaid trains with post paid lower categories is an artificial differentia. Cluster 'B', according to the learned counsel, is also riddled and hit by arbitrariness. According to him, clustering of pantry and non-pantry cars together is unreasonable. It is akin to bringing together lower and higher category trains. This is not the effect of Catering Policy 2017 and therefore, seeks quashment of addendum and all consequential actions.
6. Per contra, the learned Solicitor General of India Sri Tushar Mehta submits that his submissions may be taken as objections to the petition and would vehemently refute the submissions of the petitioner to contend that that the petitioner has no right to question the policy and this Court would not, in exercise of its jurisdiction under Arti
Raunaq International Ltd. v. I.V.R. Construction Ltd. [(1999) 1 SCC 492]
Silppi Constructions Contractors v. Union of India
Tata Cellular v. Union of India [(1994) 6 SCC 651]
Air India Ltd. v. Cochin International Airport Ltd.
Association of Registration Plates v. Union of India
CCE v. Dunlop India Ltd. [(1985) 1 SCC 260 : 1985 SCC (Tax) 75]
Claude-Lila Parulekar v. Sakal Papers (P) Ltd.
Fertilizer Corpn. Kamgar Union (Regd.) v. Union of India [(1981) 1 SCC 568]
High Court of Judicature for Rajasthan v. P.P. Singh [(2003) 4 SCC 239: 2003 SCC (L&S) 424]
Jagdish Mandal v. State of Orissa
Krishna Kumar v. Divisional Asstt. Electrical Engineer [(1979) 4 SCC 289 : 1980 SCC (L&S) 1]
Maharashtra State Mining Corpn. v. Sunil, (2006) 5 SCC 96 : 2006 SCC (L&S) 926]
Maharashtra State Mining Corpn. v. Sunil
National Institute of Technology vs. Pannalal Choudhury
Michigan Rubber vs. State of Karnataka
Parmeshwari Prasad Gupta v. Union of India [(1973) 2 SCC 543]
Ramana Dayaram Shetty v. International Airport Authority of India [(1979) 3 SCC 489]
Ramniklal N. Bhutta v. State of Maharashtra [(1997) 1 SCC 134]
The Railway Minister and Board have authority to amend operational policies without cabinet approval, as long as such amendments serve public interest in maintaining quality and hygiene in catering s....
The court established that the state can impose stringent eligibility criteria in public tenders to ensure quality and accountability, provided such criteria are not arbitrary or discriminatory.
The court upheld the revised eligibility criteria in the Catering Policy, emphasizing public interest in improving food quality and hygiene, while rejecting claims of monopoly and discrimination.
The court upheld the Railway Board's authority to set stringent eligibility criteria for catering contracts, emphasizing public interest and accountability in food services on trains.
Point of law: Nature of dispute between the members of the petitioners association and the Railways cannot be brought within the ambit of the dispute resolution clause of the Agreement, i.e., Article....
The court ruled that the renewal of food stall licenses must adhere to the Catering Policy 2010, emphasizing the rights of existing licensees despite the expiration of their licenses.
Judicial review of tender conditions is limited; courts should not interfere unless actions are arbitrary, discriminatory, or mala fide, ensuring public interest is prioritized.
Tender-based catering licenses under 2017 policy non-renewable per agreement terms; older code inapplicable excluding tenders; no perpetual right after prior binding judgments dismissing renewal clai....
Government contract - Tender Process - In event of tender being issued in favour of successful bidder and upon issuance of work order, if transport contractor or any other person, contravenes provisi....
Court upheld tender criteria requiring specific experience, emphasizing public interest and the rationality of conditions set by the state authority.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.