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IN THE HIGH COURT AT CALCUTTA
KRISHNA RAO
Cressanda Railway Solutions Limited – Appellant
Versus
Eastern Railway – Respondent
Judgment :
Krishna Rao, J.
1. The petitioners have filed the present writ application challenging the impugned order issued by the Chief Commercial Manager /FM of the Eastern Railway dated 29th October, 2025 by terminating the contract awarded to the petitioners with immediate effect, consequently, Security Deposit was also forfeited and it was also ordered for initiation of recovery proceedings of the outstanding dues.
2. The respondent authorities have floated an e-tender inviting bids from eligible bidders for “Provision of Advertisement in EMU Trains and provisions of concierge service together with advertisement in Mail/ Express and Premium Trains operated with rakes whose primary maintenance is done by Eastern Railway, on license basis”. The petitioner no. 1 has participated in the said tender process and found eligible and awarded with a Work Order on 17th May, 2023.
3. Subsequent to issuance of work order, a bid agreement was executed between the parties on 6th September, 2023. The tenure of the said agreement was for a period of five years from 17th July, 2023 till 16th July, 2028.
4. Mr. Debnath Ghosh, Learned Senior Advocate representing the petitioners submits that upon exec
The court established that termination of a contract must comply with natural justice principles, requiring adequate reasoning and opportunity for the affected party to respond.
Termination of a license without a show cause notice or consideration of refundable fees violates natural justice and judicial directives.
The court emphasized the importance of fair play and the right to a fair hearing before imposing penal consequences or termination of a contract.
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