The differentiation in tender conditions for different zones was not discriminatory and did not violate Article 14 of the Constitution of India. The court emphasized the importance of strict compliance with essential clauses of a tender and the limited scope of judicial intervention in tender matters.

JUDGMENT

1. The instant appeal has been filed under Clause X of the Letters Patent Act assailing the Order dated 06.09.2021 passed by the learned Single Judge of this Court in W.P.(C) No. 9197/2021 (hereinafter referred to as the "Impugned Judgment") wherein the prayer of the Appellants herein seeking, inter alia, quashing of the letter dated 17.08.2021 issued by Indian Railway Catering and Tourism Corporation Ltd. ("IRCTC"), i.e. Respondent, whereby the Appellants herein were directed to strictly abide by the tender conditions, was rejected

2. The facts, in brief, leading to the instant appeal are as under:

a) It is stated that in wake of the COVID-19 pandemic and the consequent lockdown, a letter dated 29.07.2020 had been issued by the Respondent stating that licence fee would be collected at the existing rates only after normalization of railway services and this normalization would be considered from the date when 100% of RSD & M/E trains start operating again.

b) Noting the increase in number of trains and passengers, vide letter dated 08.04.2021, the percentage of reduced licence fees for Operating Static Units (OSU) was revised from 20% to 30% of the quoted licence fee from 08.04.2021 for a period of three months. However, as the number of COVID-19 cases increased, vide letter dated 20.04.2021, the Respondent reviewed the upward revision of percentage of reduced licence fees and cancelled/reversed the same.

c) Tenders for Operation, Maintenance and Provision of Catering Services through Jan Ahaars (kitchen units)/Refreshment Rooms for a period of five years pertaining to the different zones of the Respondent, i.e. North, South, East and West, were floated in January-February 2021. It is stated that the Appellants herein were allocated units in the West Zone at Chhatrapati Shivaji Maharaj Terminus (CSMT) JA, Bhusawal RR, Solapur JA, Bandra RR, Nagpur JA, Bhusaal JA & Akola RR, and the East Zone at New Tinsukia RR, DDU (Mughalsarai) JA & Rourkela RR.

d) It is stated that vide letter dated 11.06.2021, the Respondent issued a clarification regarding submission of licence fee for ongoing tender processes and stated that there would be no relaxation of terms and conditions forbidders who had participated in tenders awarded post 23.03.2020 and were aware of the COVID-19 pandemic. This decision was sought to be reviewed by the South Zone, North Zone and South Central Zone. Vide letter dated 23.07.2021, the Respondent stated as follows:

"2019/IRCTC/Catg,./PolicyInstruction/02 Dated:

23.07.2021

Group General Manager

NZ, EZ, WZ, SCZ & SZ

IRCTC

Sub: Issue raised by Zone towards guidelines issued CO.

Ref: 1. CO letter No.2018/IRCTC/CO/Static/EZ Corres dated 11.06.2021

2. NZ letter No. 2020/IRCTC/NZ/LCS/Tendering dated 15.06.2021.

3.SZletterNo.IRCTC/SZ/ZO(Catg)/36/2021/ZO/SZ/OT-RR&.JA dated 17.06.2021.

4.SCZ letter No. IRCTC/SCZ/1/FP-FFU/Tendering/2021 dated 30.06.2021.

Vide CO letter dated 11.06.2021 instructions were issued to Zones that no relaxations are to be extended in any case. In this regard, SZ. NZ & SCZ has requested to review the decision given on 11.06.2021 so that the tender already floated may be executed without any dispute.

The matter has been examined at CO and following have been decided by competent authority:

All tender terms and conditions are sacrosanct and cannot be altered. However to bring down the controversy, an option Hon'ble exit may be given to the service provider who is not ready to operate.

a. Instructions issued vide CO letter dated 11.06.2021 will be followed with prospective effect i.e. for tenders invited post 11.06.2021.

b. For tenders invited between 23.03.2020 and 10.06.2021 following is to be followed:

i. All benefits, as detailed in respective tender documents, may be extended to licensees where such (dispensation) clauses are incorporated in tender document, subject to instructions/directions issued by Corporate Office from time to time.

ii. No benefits to be extended to licensees where no such clauses are in