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M/S.Premier Garment Proceeding vs 2 The Senior Divisional

Madras High Court|09 June, 2017

JUDGMENT / ORDER

The petitioners have filed the above writ petition to issue a Writ of Certiorarified mandamus to call for the records relating to the proceedings of the 2nd respondent dated 01.09.2016 relating to the imposition of penalty for the period February 2016 to 12.6.2016, to quash the same and direct the respondents herein to forthwith pay the sum of Rs.64,83,631.50 to the petitioner in respect of Trains, viz., Chennai-Navjeevan Express and Yercaud-Hyderabad Express for the period from February 2016 up to 12.6.2016.
2. Heard Mr.AR.L.Sundaresan, learned Senior Counsel appearing for the petitioner and Mr.P.T.Ramkumar, learned Standing Counsel appearing for the respondents.
3. The brief case of the petitioner is as follows:-
(i) According to the petitioner, they are one of the major bed roll suppliers to the passengers in A/C coaches of Trains operated by Southern Railways for more than 20 years. According to the petitioner, they have state-of-the-art facility for washing, drying, pressing and stocking of pillows, bed covers, bed sheets, face towels and blankets at Chennai and the Railway Authorities are well aware of the same.
(ii) The petitioner participated in the tender for Comprehensive Linen Management including procurement, washing and distribution of Bed Roll Kits to passengers travelling in A/C II tier coaches and A/C III tier coaches in the said trains. The petitioner was the successful bidder in both the tenders and was awarded the contracts for supply of bed rolls by the Southern Railway. The petitioner also entered into separate agreements for the supply of bed rolls for both the trains.
(iii) The petitioner filed a Writ Petition in W.P.No.31670 of 2015 for payment of the bill amounts, which were due to them, for the supply of bed rolls, which were allowed to be loaded other than in the base station. The respondents released the payments for the period from May 2015 to October 2015. For the subsequent period, payment was not made by the respondents stating that direction issued by this court would be applicable only for the period up to October 2015. The petitioner was allowed to load bed rolls in Chennai for the aforesaid Trains on either side and there was no objection by the Railway Authorities for the same. However, for the period from November 2015 onwards, the respondents have not made the payment.
(iv) Thereafter, the petitioner filed a Writ Petition in W.P.No.3007 of 2016 to issue a writ of Certiorarified Mandamus to call for the records relating to the proceedings of the 2nd respondent dated 10.12.2015, to quash the same and to direct the respondents to forthwith pay the bills of the petitioner for the month of November 2015 and December 2015 and also the amounts, which have been deducted as alleged penalty for the period upto October 2015. This court, taking into consideration the case of both the parties, by order dated, 11.4.2016, directed the respondents to pay the bill amounts to the petitioner for the period from November and December 2015 and January 2016., within a period of two weeks from the date of receipt of a copy of that order.
(v) So far as the penalty for not washing blankets, bed rolls, pillow covers, short supply of pillow and pillow covers etc. are concerned, the petitioner was directed to give a representation to the 1st respondent and on receipt of the same, the 1st respondent was directed to consider the same and pass orders, in accordance with law, after due notice to the petitioner and affording an opportunity of personal hearing to them. Thereafter, the respondents had paid the amounts, which were payable for the month of November and December 2015 and January 2016. The 2nd respondent, by order dated 01.09.2016, levied penalty on the petitioner to the tune of Rs.39,08,083.75 and Rs.25,75,547.75 in respect of two Trains.
(vi) According to the petitioner, a sum of Rs.64,83,631.50 is payable by the respondents to the petitioner towards the amounts imposed as penalty for the bed roll kits supplied for the period from 01.02.2016 upto 12.06.2016. In these circumstances, the petitioner has filed the above writ petition to direct the respondents to make the above said payments.
4. The 2nd respondent filed their counter, wherein, in paragraph No.15, it has been stated that the payments for the bills submitted by the petitioner for the period February 2016 to June 2016 has been sanctioned after deducting penalty amount as per the agreement conditions and also stated that a sum of Rs.61,83,170.50 was sanctioned for not loading the bed rolls at base stations viz., Coimbatore and Erode. Further, the 2nd respondent has stated that a sum of Rs.3,00,461/- has been imposed as penalty for not washing blankets, bedrolls, pillow covers short supply and other deficiencies. Further, the 2nd respondent has also stated that apart from penalty amount deducted as mentioned above for the period February 2016 to June 2016, all other payments are liable to be paid to the petitioner, as per the agreement conditions and also has been sanctioned.
5. Mr.P.T.Ramkumar, learned Standing Counsel appearing for the respondents submitted that the 2nd respondent is willing to make payment of Rs.61,83,170.50 to the petitioner and that in respect of the penalty amount of Rs.3,00,461/-, the petitioner may be directed to give a representation to the 1st respondent and on receipt of the same, the 1st respondent may be directed to consider the same, in accordance with law.
6. Mr.AR.L.Sundaresan, learned Senior Counsel appearing for the petitioner submitted that time limit may be fixed to the respondents for the payment of Rs.61,83,170.50.
7. In view of the submissions made by the learned counsel on either side and also taking into consideration the averments stated in paragraph No.15 of the counter affidavit, I direct the respondents to pay a sum of Rs.61,83,170.50. to the petitioner, within a period of three weeks, from the date of receipt of a copy of this order. So far as the penalty is concerned, the petitioner is directed to give a representation to the appropriate authority and on receipt of the representation from the petitioner, the appropriate authority shall decide the same, on merits and in accordance with law, as expeditiously as possible.
With these observations, the writ petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed.
09.06.2017 Index: Yes/No Rj To 1 The Divisional Railway Manager Southern Railway Salem Division, Salem 2 The Senior Divisional Mechanical Engineer Southern Railway Divisional Office Mechanical Branch, Salem M.DURAISWAMY,J., Rj W.P.No.38056 of 2016 & W.M.P.No.32616 of 2016 09.06.2017 W.P.No.38056 of 2016 and W.M.P.No.32616 of 2016 M.DURAISWAMY, J.
At the instance of the learned counsel appearing for the respondents, the matter has been listed today under the caption for being mentioned.
2. Heard Mr.AR.L.Sundaresan, learned Senior Counsel for the petitioner and Mr.P.T.Ramkumar, learned Standing Counsel for the respondents.
3. Mr.P.T.Ramkumar, learned Standing Counsel appearing for the respondents submitted that in paragraph No.5 of the order dated 09.06.2017, it has been wrongly mentioned as though the 2nd respondent was willing to make payment of Rs.61,83,170.50 to the petitioner and that the 2nd respondent has not given any consent for the same.
4. In view of the submission made by the learned Standing Counsel appearing for the respondents, instead of the existing paragraph No.5, the following is directed to be incorporated in the order dated 09.06.2017.
5. Mr.P.T.Ramkumar, learned Standing Counsel appearing for the respondents submitted that in view of the earlier orders passed in the two writ petitions in W.P.Nos.31670 of 2015 and 3007 of 2016, the 2nd respondent should make the payment M.DURAISWAMY, J.
rg of Rs.61,83,170.50 to the petitioner and that in respect of the penalty amount of Rs.3,00,461/-, the petitioner may be directed to give a representation to the 1st respondent and on receipt of the same,the 1st respondent may be directed to consider the same, in accordance with law.
5. Registry is directed to incorporate the above paragraph No.5 and delete the existing paragraph No.5 in the order dated 09.06.2017. In all other aspects, the order dated 09.06.2017 shall remain unaltered.
28.06.2017 rg Note: Registry is directed to issue fresh order copy after carrying out the corrections.
W.P.No.38056 of 2016 and W.M.P.No.32616 of 2016 http://www.judis.nic.in
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Title

M/S.Premier Garment Proceeding vs 2 The Senior Divisional

Court

Madras High Court

JudgmentDate
09 June, 2017