Authority: High Court at Calcutta (Constitutional Writ Jurisdiction)

Order Date: 07 July 2026

Case Overview

  • Parties: Petitioners – Surya Alloy Industries Limited & Anr.; Respondents – Union of India & Ors. (including East Coast Railway, RDSO, RITES Limited).
  • Background: East Coast Railway issued a tender for Elastic Rail Clips‑MK‑V (T‑5919) to meet IRS Specification T‑31. Surya Alloy was the L‑1 bidder and received a purchase order on 3 Oct 2024. Materials were inspected by RITES before dispatch and invoices were accepted and paid.
  • Allegations: On 20 Aug 2025 the respondents issued a show‑cause notice alleging that a joint sampling on 12 May 2025 (conducted by RDSO and Track Depot officials) showed non‑conformity with IRS T‑31‑2021. The notice claimed the samples failed the prescribed tests.
  • Petitioner’s Response: Surya Alloy challenged the show‑cause notice in writ petition WPA 21634/2025 (disposed on 19 Sep 2025, allowing a reply). The petitioners replied on 19 Sep 2025, contending that the testing violated IRS Specification clauses 15.1‑15.8 and that RDSO had no authority to test beyond 90 days of supply (Clause 1502). They argued the sampling was not done in their presence as required by Clause 15.2.
  • Procedural Issues: The respondents claimed the 30‑day reply period expired on 18 Sep 2025 and that the petitioners’ reply arrived on 1 Oct 2025, thus not considered. The impugned order of temporary delisting was issued on 9 Oct 2025, stating the petitioners had not replied.
  • Legal Findings: The Court noted that the reply was actually received on 29 Sep 2025 (RDSO) and that the respondents ignored it. It highlighted that the show‑cause notice and delisting order did not fall under any of the grounds listed in Clause 4.2.2 (temporary delisting criteria), such as repeated failures, direction from law‑enforcing agencies, refusal of quality audit, etc.
  • Natural Justice: The Court found a breach of natural justice – the petitioners were denied a personal hearing and their reply was not considered before the delisting order was passed.

Final Outcome

  • The show‑cause notice dated 20 Aug 2025 and the temporary delisting order dated 9 Oct 2025 are set aside and quashed.
  • WPA 24149/2025 is allowed; all connected applications are disposed of.
  • Respondents are directed to take samples of the supplied materials in the presence of the petitioner's representatives and, if non‑conformity is later established, to act in accordance with the law and the IRS Specification.

Topics: Railway Procurement, Natural Justice