Case Note & Summary
The present judgment arises from two writ petitions filed before the High Court of Judicature for Rajasthan at Jodhpur, challenging the rescission of a railway infrastructure contract and a subsequent tender notice. The petitioner, a public limited company incorporated under the Indian Companies Act, 1956, and engaged in infrastructure development, was awarded a contract pursuant to a tender floated by the North-Western Railway for execution of works between Jaipur-Chaksu Railway Tracks/Stations in connection with the Jaipur-Sawai Madhopur Doubling Project. The Letter of Acceptance dated 10.10.2024 stipulated a 24-month period, with 15 months for the Chaksu-Sheodaspura section and 9 months thereafter for station buildings. The formal agreement was executed on 25.03.2025 retrospectively. The petitioner furnished bank guarantees from Punjab National Bank and Bank of Baroda, along with an indemnity bond. The central grievance is the rescission of contract by order dated 13.01.2026, purportedly under Clause 62 of the Standard General Conditions of Contract. The petitioner alleges that the delay in execution was attributable to the respondents' failure to provide approved drawings, hindrance-free sites, NOCs, right-to-way, and removal of encroachments. Despite repeated communications dated 24.01.2025, 10.02.2025, 06.03.2025, and 07.04.2025, the respondents did not resolve the issues and instead issued a notice dated 29.04.2025 alleging slow progress. The petitioner filed S.B. Civil Writ Petition No. 983/2026 seeking quashing of the rescission order, restoration of contract, and restraint on invocation of bank guarantees; and S.B. Civil Writ Petition No. 8878/2026 seeking quashing of the Notice Inviting Tender dated 06.05.2026 and related reliefs. The court heard arguments on 21.07.2026 and reserved judgment, pronouncing on 17.08.2026. The provided judgment text, however, ends mid-sentence at paragraph 10 during petitioner's submissions, and therefore the final decision, reasoning, and directions are not available in the excerpt.
Issue of Consideration
Whether the rescission order dated 13.01.2026 passed under Clause 62 of Standard General Conditions of Contract is arbitrary, non-speaking, and violative of Articles 14 and 19(1)(g) of the Constitution of India; Whether the subsequent Notice Inviting Tender dated 06.05.2026 is illegal and liable to be quashed as consequential to the illegal rescission; Whether the respondents should be restrained from invoking bank guarantees and proceeding with the tender during pendency.
