O R D E R:

Petitioner claims to be the sole proprietorship engaged in providing catering services on railway platforms. Pursuant to E-Tender Notice No. C/C/79/Catg./GMUS/A1, A, B, C/1/2023, she was awarded license vide letter dated 24.01.2024 to operate, maintain and provide catering services through Tea Stall GMU-82 at Lingampalli Railway Station for five years from 15.03.2024 to 14.03.2029. She is stated to have paid license fee for the first year and the required security deposit on 12.02.2024 as per the terms of the license. It is stated, during the relevant period, petitioner’s husband was suffering from a serious liver ailment and was undergoing continuous medical treatment across various hospitals, including liver transplant surgery and post-operative care, and petitioner, being the primary caregiver, was fully engaged in attending to his medical needs. It is stated that though Respondents issued letters dated 03.02.2025 and 07.05.2025 for payment of license fee for the second year, petitioner inadvertently failed to make payment due to the said compelling circumstances, and the delay was neither intentional nor deliberate.

1.1. It is stated, petitioner was shocked to receive the impugned letter dated 16.06.2025 issued by Respondent No.4 terminating the license and debarring her for five years, without issuance of any show cause notice. Had such notice been issued, petitioner would have explained the circumstances of her husband’s illness and would have paid the license fee along with any applicable penalty, and that there was no intention to default payment. Petitioner is therefore, stated to have made representation dated 24.06.2025 to the Principal Chief Commercial Manager, South Central Railway and on 27.06.2025 to Respondent No.4 requesting reconsideration of termination and debarment, explaining the medical circumstances and expressing willingness to pay all outstanding dues with interest and penalties, and stating that the security deposit had already been forfeited, but no response has been received. As no show cause notice or prior intimation was issued before termination and debarment, the impugned action is violative of principles of natural justice.

1.2. It is stated, on 01.07.2025, the Principal Chief Commercial Manager addressed a letter to Respondent No.4 seeking response in light of the petitioner’s representations, but no decision has been taken till date, and any response would be ineffective unless the debarment is revoked, as it was imposed without due process. Petitioner states that punishment for debarment is laid down in various documents governing these catering licenses.

“ (a) Rule 151 of the General Financial Rules 2017 lays down that a bidder bidding for contracts of goods or services would be debarred if he has been convicted of an offence under the Prevention of Corruption Act, 1988, Indian Penal Code or any other law for the time being in force, for causing any loss of life or property or causing a threat to public health as part of the execution of public procurement for a period not exceeding three years. A procuring entity may debar a bidder for a period not exceeding two years if the bidder has breached the code of integrity. A bidder shall not be debarred unless such bidder has been given a reasonable opportunity to represent against such debarment.

(b) Under the General Conditions incorporated in the License Agreement, Clause 16 lists the penalty for the Breach of any terms and conditions of the License. Clause 16.1 can be read as:

Clause 16 "Breach of any terms and conditions of the License"

The penalty (ies) that may be levied by the Railway on the Licensee In any of the instances mentioned in Article 15 above shall include but not limited to the following:

(a) forfeiture/appropriation of the security deposit and balance License fee available with Railway in whole after adjustment of all dues and

(b) to annual the license and forthwith terminate the License Agreement; and

(c) debar