MICA CARGO MOVERS Vs. UNION OF INDIA

JUDGEMENT

(1.) By way of present petition filed under Article 226 of the Constitution of India, the petitioner seeks setting aside of order dtd. 5/7/2017 passed by respondent No.2/Northern Railway (hereafter referred to as 'respondent') whereby petitioner's registration as a contractor with Indian Railways, was cancelled alongwith cancellation of lease contracts, forfeiture of security deposit and blacklisting for a period of 5 years.

(2.) Petitioner claims to be proprietorship firm registered with respondent vide Registration Certificate No. 00DLIA00044 dtd. 23/10/2015 that was valid for a period of five years under the Comprehensive Parcel Leasing Policy (CPLP)-2014. Mr. Sanoj Kumar Modi, the petitioner's proprietor was independently registered with respondent as a Contractor vide registration dtd. 10/12/2013 that was valid for a period of 5 years under the provisions of CPLP'2006.

(3.) It is further claimed that respondent awarded a contract to Mr.Modi to operate the parcel leasing space in Train No. 12622 RSLR from NDLS to CEN with effect from 30/4/2014 to 29/4/2017 vide Agreement dtd. 29/4/2014. On 30/12/2016 officials of respondent apprehended consignment of wine/alcoholic liquor being carried in the compartment that was leased to Mr. Modi at Nagpur Railway Station. A Show Cause Notice dtd. 31/12/2016 was issued to Mr. Modi thereby alleging that he committed violation of clause nos. 23.11, 34.4 and other clauses of the CPLP 2014, and in view of the same he is liable to pay penalty of Rs.55,000.00. The Show Cause notice further stated that till further orders, his contract will remain suspended as a precautionary measure. In reply, Mr. Modi refuted the allegations and annexed excise documents to contend that the consignment was illegal. However, vide letter dtd. 7/1/2017 respondent communicated imposition of penalty in the form of cancellation of registration, cancellation of lease contracts, forfeiture of security deposit and blacklisting him for a period of 5 years. The said order was challenged by Mr. Modi through W.P.(C) 512/2017 wherein this Court vide order dtd. 19/1/2017 granted him the liberty to file an appeal before the appellate authority. In compliance, a detailed representation was submitted which came to be rejected by respondent No. 3 on 23/3/2017. The rejection was challenged before this Court by way of W.P.(C) 5831/2017 and was disposed of with liberty to invoke arbitration.