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MICHAEL ZOTHANKHUMA
XTRA FREIGHT FORWARDER – Appellant
Versus
UNION OF INDIA – Respondent
ORDER :
1. Heard Mr. M.K. Choudhury, learned Senior counsel, assisted by Mr. P. Bharadwaj, learned counsel for the petitioner. Also heard Mr. K.K. Parasar, learned CGC.
2. Pursuant to a bidding process initiated vide Tender no. C259RNYLEASINGPCET05, the petitioner on emerging successful, was issued a Letter of Acceptance [LoA] for tender viz. ‘Leasing of Parcel Cargo Express Train [PCET] from Azara [AZA] to Tungalakabad [TKD] for a period of six years on round trip basis, consisting 15 LVPHs + 1 SLR [363.9 tons] for first six months and 20 LVPHs + 1 SLR [483.9] for remaining period’ [‘the Contract-Work’, for short]. The LoA further mentioned that intermediate parcel handling stations would be at New Jalpaiguri Junction [NJP], Sankrail Goods Terminal [SGTY], Alam Nagar [AMU] and Rampur [RMU]. After compliance of necessary formalities including deposit of Security Deposit required on the part of the petitioner, the petitioner was issued a Work Order on 06.10.2022 whereby the petitioner was allowed to commence the Contract-Work from 04.11.2022 without fail. Accordingly, the petitioner started the Contract-Work of running of AZA-TKD-AZA lease Parcel Cargo Express Train Ex AZA on round tr
The court established that termination of a lease contract without proper notice violates principles of natural justice and contractual obligations.
The court emphasized the importance of fair play and the right to a fair hearing before imposing penal consequences or termination of a contract.
Contractual termination notice must be issued by the authorized Railway Administration, adhering to principles of natural justice.
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