Facts of the Case

Krishna Enterprise and Sunshine Caterers, together with connected petitioners in three linked writ petitions (M/S Krishna Enterprises & M/s Classic Caterers, M/S Deepak and Co., and M/S Jayanta Kumar Ghosh Outdoor Catering), challenged licence fee terms in IRCTC catering tenders at railway stations in the North-East Frontier Railway zone, contending the terms discriminated against them as long-term tender licensees. This is a public tender/contract-law dispute; GST plays no role in the case.

Issues Involved

  1. Whether the licence fee payment clause in the tender/contract was violative of Article 14 of the Constitution or discriminatory against the petitioners as long-term tender licensees.

Petitioner's Arguments

  • The licence fee clause discriminated against the petitioners, who qualified as 'long term tender licencees,' and was arbitrary and violative of Article 14.

Respondent's Arguments

  • The petitioners had not been able to satisfy the requirement in the letter dated 02.11.2022 that they were 'long term tender licencees,' and tender terms are a matter of commercial discretion for the tendering authority.

Court Order / Findings

  • The Court held that tender terms and conditions fall within the realm of commercial contract, where the tendering authority must have freedom to impose conditions.
  • The petitioners failed to demonstrate that different licence fee conditions were imposed on similarly placed contractors within their own tender category.
  • Finding no discrimination or violation of Article 14, the Court dismissed all five writ petitions, leaving parties to bear their own costs, and vacated interim orders.

Important Clarification

This decision addresses public tender law and Article 14 discrimination principles in a railway catering context — it has no connection whatsoever to GST law and should not be cited on any tax question.

Sections Involved

  • Constitution of India, Article 14

Decision – In Favour of

Decided against the petitioners — all five connected writ petitions were dismissed and the tender terms were upheld.

Case Details

  • Court: Gauhati High Court (High Court of Assam, Nagaland, Mizoram and Arunachal Pradesh)
  • Case Number: WP(C)/1171/2023, with linked WP(C)/7624/2022, WP(C)/1841/2023 and WP(C)/7597/2022
  • CNR: GAHC010044252023
  • Date of Order: Not separately dated in the excerpted portion (2023)

Link to Download the Order

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