IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Reserved on: 18.08.2025 Pronounced on: 29.08.2025 Raj Kumar ….Petitioner versus Postgraduate Institute of Medical Education and Research and another …Respondents CORAM: HON'BLE MR. JUSTICE DEEPAK SIBAL HON'BLE MS. JUSTICE LAPITA BANERJI Present: Mr. Rahul Sharma-1, Advocate for the petitioner.

Mr.Abhishek Kumar Premi, Advocate and Mr. Arjun Singh, Advocate, for the respondents-PGIMER.

Mr. Ravi Sodhi, Amicus Curiae assisted by Mr. Umesh Pandey, Advocate.

Deepak Sibal, J.

1. Through the instant petition the petitioner seeks quashing of the order dated 04.02.2025, passed by the Director, Post Graduate Institute of Medical Education and Research, Chandigarh (for short - the Institute), debarring the petitioner from participating in the tendering process of all commercial sites in the Institute for a period of 02 years.

THE FACTS

2. In response to a notice inviting tenders, the petitioner submitted his bid and having emerged as the highest bidder, was granted, by the Institute, on 10.12.2022, a licence to run a built-up Cafeteria in the new Outdoor Patient Department Block of the Institute for a period of 02 years.

3. A licence deed dated 10.12.2022 was entered into between the parties which contained the terms and conditions for the grant of the aforesaid licence to the petitioner. As per clause 5 of the licence deed, if at any stage, it was found that the licensee had submitted fake/ forged documents, his earnest money/ performance bank guarantee, security amount was to be forfeited and the licensee was to be debarred for a period of 02 years from dealing with the Institute as also that his licence was liable to be terminated. As per clause 20(e) of the licence deed, in case the licensee failed to implement the directions regarding conditions and specifications of the licence deed, a fine to the tune of 5%, 7% and 10% of the monthly licence fee was to be imposed upon him for the 1^st 2^nd and 3^rd violation respectively and if the violation(s) still persisted, his licence was liable to be terminated by the Institute. Clause 28 of the licence deed provided that the licence could be terminated by the licensee by giving 60 days clear notice without assigning any reason but in the case of the licensor, the licence could be terminated by giving notice of 30 days. However, if the licensee was to terminate the licence, he would be debarred from participating in the tendering process of all the commercial sites of the Institute for a period of one year and 50% of one month’s licence fee would also be deducted from the security deposit which would be subject to the minimum of Rs.20,000/- and maximum of Rs.5 lakhs. Clause 36 of the licence deed was to the effect that the Director of the Institute could modify, impose or relax any term and condition of the licence deed and as per clause 37 of the licence deed, in case of breach of any of the terms of the licence, the Institute could revoke the licence and forfeit the deposited security/ earnest money and the licensee would thereupon also forfeit all his rights and would further remain liable for any sum to be found due from him as also for any damage/ loss which may be caused to the licensor on account of such default.

4. As per the Institute, on account of the 1^st violation by the petitioner of the terms of the licence deed, through order dated 02.09.2023, a penalty of Rs.72,057/- was imposed on him which was challenged by the petitioner before this Court through filing of a writ petition being CWP-2277-2024 - Raj Kumar v. Postgraduate Institute of Medical Education and Research and others. In such petition this Court has issued notice and granted interim stay with regard to recovery of the imposed penalty. The petition remains pending.

5. Through orders dated 19.01.2024 and 01.05.2024, the Institute was of the opinion that the petitioner had violated the terms and conditions of the licence for the 2^nd and 3^rd time respectively and therefore, two