The Madras High Court has directed Southern Railways to call for a fresh tender for parking and operating a call taxi stand at the Central Railway station here and finalise it by March 23 2019,enabling the new successful tenderer to continue operations without any break.
Justice S M Subramaniam gave the direction on petitions by Bharathi Cabs Pvt Ltd. and Fast Track Pvt. Ltd, and permitted Ani Technologies Pvt Ltd to operate the cab services from September 24, 2018 to March 23, 2019, in whose favour the tender was already finalised.
While the petition filed by Bharathi Cabs sought to quash the August 2 2017 tender notification, the one by Fast Track sought cancellation of the letter issued on October 26 by Southern Railways to Ani Technologies Pvt.Ltd. for submission of documents before taking up the contract.
Disposing of the petitions, the judge said, "The facts and circumstances of the present case on hand certainly require an application of the legal principle of legitimate expectations, more specifically, in favour of Ani Technologies Private Limited, who is the successful bidder in the Tender.
Accordingly, this Court is of an opinion that Ani Technologies Private Limited must be allowed to operate the Cab services as per the terms and conditions stipulated in the tender notification."
As per the notification, the tender period was for a year and the reserve price was fixed as Rs 2.17 crore. The area of parking is 153.6 square metres.
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The tender was finalised in favour of Ani Technologies Private Limited, for Rs 60 lakh originally and subsequently, enhanced by the Railways to Rs 70 lakh,by way of negotiations.
Accordingly, the acceptance certificate was issued by the Railways in favour of the company on October 26, 2017.
However, on account of the status quo granted by the High Court, the company was unable to operate the services.
Bharathi Cabs, which did not participate in the tender process, moved the court, claiming that Railways finalised the tender far below the reserve price quoted and that they were ready to pay more than the price fixed by the Railways.
The petitioner submitted that though they had not taken part in the tender process, it had the locus standi to challenge the tender because of the revenue loss to Railways.
The counsel for Southern Railways submitted that they had followed all the procedures under relevant rules for issuing tenders.
Recording the submissions, the judge said, "The successful bidder, after selection and the issuance of acceptance certificate, would acquire the right of legitimate expectations that he will be permitted to operate the Cab services at the Central Station."
"Thus, in the interest of all concerned, a balancing approach is required to protect the revenue of the Southern Railways as well as to honour the process of tender already conducted and in respect of the selection of the successful bidder," he observed.
"Ani Technologies Private Limited is permitted to operate the Cab services for a period of six months from September 24 to March 23 next year," he said and directed the Southern Railways not to give any further extension.
He also gave a direction to the Southern Railways to proceed with the fresh tender notification by providing an opportunity to all those eligible, including the petitioners and finalise it by March 23, 2019, enabling the new successful tenderer to continue the operations without any break.
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