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IN THE HIGH COURT OF JHARKHAND AT RANCHI
RONGON MUKHOPADHYAY, DEEPAK ROSHAN, JJ.
M/s Mobile Caterers Welfare Association – Appellant
Versus
The Union of India - Respondents
W.P.(C) No. 766 of 2024
Decided on : 27-02-2024
[CATERING] - [Catering Policy 2017 and Addendum] - [Article 14 of the Constitution of India, Catering Policy 2010, Catering Policy 2017, Commercial Circular No. 24/2023] - [The court examined the legality of the Commercial Circular No. 24/2023, which amended the Catering Policy 2017, arguing it was arbitrary and discriminatory. The court highlighted that the policy aimed to ensure quality and hygiene in catering services, emphasizing the need for experienced agencies to manage food production and service. The court interpreted Article 14 as requiring fairness and non-arbitrariness in state actions, ultimately concluding that the new eligibility criteria were justified to enhance service quality and did not violate constitutional provisions.]
Fact of the Case:
The petitioners challenged the Commercial Circular No. 24/2023 issued by the Railway Board, which amended the Catering Policy 2017, claiming it was arbitrary and discriminatory, designed to exclude certain bidders and favor others. They sought to quash the related e-Open Tenders and maintain the original Catering Policy to avoid inconvenience to passengers.
Finding of the Court:
The court found that the amendments in the Commercial Circular were aimed at improving the quality and hygiene of food served on trains. It ruled that the new eligibility criteria were reasonable and necessary to ensure accountability and high standards in catering services, dismissing claims of discrimination.
Issues: Whether the Commercial Circular No. 24/2023 was arbitrary or discriminatory, and whether the new eligibility criteria violated Article 14 of the Constitution of India.
Ratio Decidendi: The court held that judicial review in tender matters is limited to ensuring that the process is not arbitrary or discriminatory. It emphasized that the state has the discretion to set eligibility criteria to ensure quality and accountability in public contracts, provided these criteria are not designed to exclude specific bidders without justification.
Final Decision: The court dismissed the writ application, upholding the validity of the Commercial Circular No. 24/2023 and the new eligibility criteria, concluding that they were aimed at enhancing the quality of catering services on Indian Railways.
JUDGMENT :
Rongon Mukhopadhyay, J.
Heard Mr. S.D. Sanjay, learned Senior Counsel for the petitioners and Mr. Tushar Mehta, learned Solicitor General of India appearing for the respondents.
2. In this writ application, the petitioners have prayed for quashing of the Commercial Circular No. 24/2023 dated 14.11.2023 issued by the respondent-Railway Board, Ministry of Railways, Government of India, New Delhi whereby addendum to Catering Policy 2017-Para 1 & Para 3 of Catering Policy 2017 has been issued contrary to the object and spirit of the Catering Policy, 2017. The petitioners have also prayed for quashing of the notice inviting e-Open Tender bearing e-Open Tender No. 2024/IRCTC/P&T/Cluster/FEB/EZ/SER/CLT/B-7 whereby e-Open Tender for provision of on board catering services in trains for the period of five years further extendable up to two years for category of Cluster-Category ‘B’ floated by the respondent-IRCTC for which the last date and time for submission of Bid is 22.02.2024, 12:00 hrs. and the date and time of opening of Technical Bid is 22.02.2024 at 15:15 hrs. The petitioners have further prayed for quashing of the notice inviting e-Open Tender bearing e-Open Tender No. 2024/IRCTC/P&T/Cluster/FEB/NR/CLT/A-2 whereby e-Open Tender for provision of onboard catering services in trains for the period of five years further extendable up to two years for category of Cluster- Category ‘A’ floated by the respondent-IRCTC for which the last date and time for submission of Bid is 22.02.2024, 12:00 hrs. and the time of opening of Technical Bid is 22.02.2024 at 12:15 hrs. Another prayer which has been made by the petitioners is of quashing the notice inviting e-Open Tender bearing e-Open Tender No. 2024/IRCTC/P&T/Cluster/FEB/162/562/CLT/A-4 by which e-Open Tender has been floated for provision of on board catering services in trains for the period of five years further extendable up to two years for category of Cluster-Category ‘A’ floated by the respondent-IRCTC for which the last date and time for submission of Bid is 15.02.2024, 12:00 hrs. and the date and time of opening of Technical Bid is 15.02.2024 at 12:15 hrs. The petitioners have prayed for a declaration that the addendum to Catering Policy 2017, Para 1 and Para 3 of Catering Policy 2017 issued vide impugned Commercial Circular No. 24/2023 dated 14.11.2023 is not only arbitrary, discriminatory and tailor made but also contrary to the object of the Original Catering Policy 2017 and as such amounts to formulating such terms and conditions with ulterior motive to exclude certain class of Bidders and to make favour to another class of Bidders amounting to selective discrimination which is violation of Article 14 of the Constitution of India. The petitioners have also prayed for a declaration that the impugned notice inviting e-Open Tender on the basis of the Commercial Circular No. 24/2023 dated 14.11.2023 is tailor made as the same has been designed in such a manner to exclude and eliminate certain class of Bidders with motive to favour another class of Bidder(s) and hence is violation of Article 14 of the Constitution of India. A restrainment order has also been sought for from this Court for restraining the respondents from proceeding with the impugned Tender process which is to commence from 15.02.2024 and to continue with the Original Catering Policy 2017 so that the consumers and the passengers of the train may not suffer any inconvenience in the matter of catering.
3. Mr. S.D. Sanjay, learned Senior Counsel appearing for the petitioners has commenced his submission by referring to the legal provisions as enunciated by the Hon’ble Supreme Court in various pronouncements touching upon the scope of judicial review of the Court in a Tender process. He has referred to the case of “Meerut Development Authority versus Association of Management Studies & Anr.” reported in (2009) 6 SCC 171, while submitting that if the terms and conditions of a notice inviting Tender is tailor m
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