B YELLASWAMY Vs. SOUTH CENTRAL RAILWAY

JUDGEMENT

(1.) The petitioner assails the order of the 2nd respondent bearing reference No.C/C/37/ cloakroom/SC/05, dated 25-08-2006 whereby invoking the clause 50 of the "General conditions for running the cloak room contract at Secunderabad Railway Station" (for short "general conditions"). The contract purportedly awarded to the petitioner was terminated forfeiting an amount of Rs.20,94,221/- from the amounts paid by the petitioner. The break up of the amount of Rs.20,94,221/- thus forfeited includes the difference of licence fee (Rs.3,36,152/-); difference of ground rent (Rs.750/-); cost of advertisement (Rs.48,328/); loss of man hours (Rs.8,790/-); and security deposit (Rs.17,00,201/-).

(2.) The Railways issued a tender notification dated 18-06-2005 inviting offers/ bids for grant of lease of the cloakroom in the Secunderabad Railway Station for the three- year period from 13-12-2005 to 12-12-2008. Pursuant to the notification, the petitioner submitted his bid. By a communication dated. 17-10-2005 the 2nd respondent informed the petitioner that pursuant to his tender application dated. 14-07-2005, it has been decided to award the cloakroom contract at Secunderabad Railway Station to the petitioner by an annual licence fee of Rs. 17,00,201/- subject to payment of the stipulated amounts and submitting a bank guarantee towards a security deposit valid for a period of 39 months, for Rs. 17,00,201/-. The period within which the several payments should be made has also been stipulated and the petitioner is informed by the letter (dated 17-10-2005) that the stipulated amounts should be paid so as to enable necessary action being taken to enter into an agreement with the railway administration. By another communication dated 06-12-2005 the petitioner was informed that as he had remitted half of the licence fee, ground rent and security deposit (by a bank guarantee) an authorisation letter permitting the petitioner to run the cloakroom at Secunderabad, from the midnight of 12-12-2005 is being forwarded and that a copy of the agreement is also enclosed for execution. The letter was to constitute an authority for the petitioner for undertaking the work till an agreement is executed.

(3.) One Smt.P.Vani filed a Writ Petition No.26098 of 2005 assailing the award of the lease to the petitioner. This Court by the order dated 07-12-2005 observed that any proceedings taken for f inalisation of the tender including the execution of any agreement in favour of the petitioner herein would be subject to further orders on the writ petition.