GITA ENTERPRISES Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard the parties for final disposal.

(2.) According to the petitioner, the Railways-respondents cannot recover royalty charges from the running or final bill or from the security deposit, and they cannot withhold payment of final bill/release of security deposit for want of Royalty Clearance Certificate inasmuch as petitioner is merely purchasing and supplying stone ballasts. Petitioner has further prayed to declare clause 5 and clause 6 of the agreement on the ground that they are unenforceable as opposed to public policy and violative of Article 14 of the Constitution.

(3.) On 29-3-2005, petitioner entered into an agreement with the respondents for supply of stone ballasts. Clauses 5 and 6 of the Agreement reads as follows:-