Indian Railway Catering and Tourism Corporation Limited (Irctc) v. Mayuri Ben M. Chotai

NAVIN CHAWLA, J JULY 05, 2018/Pragya/arya/rv

O.M.P. 305/2015 Page 1 * IN THE HIGH COURT OF DELHI AT NEW DELHI + O.M.P. 305/2015 Reserved on: 3rd May, 2018 Date of decision : 5th July, 2018 INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED (IRCTC) ..... Petitioner Through: Mr.Nikhil Majithia, Adv. versus MAYURI BEN M. CHOTAI ..... Respondent Through: Mr.Abhishek Singh, Mr.Surjeet Singh, Advs. CORAM: HON'BLE MR. JUSTICE NAVIN CHAWLA 1. This petition has been filed under section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the 'Act') challenging the Arbitral Award dated 30.01.2015 passed by the Sole Arbitrator adjudicating the disputes that have arisen between the parties in relation to the licenses for Catering Services on trains granted by the petitioner to the respondent. 2. The Petitioner floated a tender document inviting bids for providing on board catering services in its trains to members of the public at large. It invited bids for Train Nos. 2321-22, 2069-70, 1037-38/2149- 50, 2561-62, 2553-54, 5635-36, 7037-38 and 2811-12 at different points in time between the years 2002-2003. M/s Mahesh H Caterers a proprietorship concern of Mr. Mahesh M. Chotai, emerged as a successful bidder for the said trains and accepted the Award of License O.M.P. 305/2015 Page 2 vide letter dated 13.09.2003 in respect of the 8 trains. Separate agreements were entered into between IRCTC and M/s Mahesh H Caterers for managing the catering services on the trains given as under: A. 2321/2322 (Howarh-Mumbai-Howarh) (Awarded on 16.9.2002) B. 2069/2070 (Durg-Raigarh-Durg) (Awarded on 27.3.2003) C. 2553/2554 (Barauni-New Delhi- Barauni) (Vaishali Express) (Awarded on 9.5.2003) D. 2561/2562 (New Delhi-Darbhanga-New Delhi) (Awarded on 12.9.2003) E. 2149-2150 (1037/1038) (Pune-Patna-Pune) (Awarded on 7.10.2003) F. 7037/7038 (Secundrabad-Bikaner- Secundra) (Awarded on 3.12.2003) G. 2811/2812 (Hatia-Lokmaya Tilak Termin-Hatia) (Awarded on 29.12.2003) H. 5635/5636 (Guwahati-Okha-Guwahati) (Awarded on 29.12.2003) 3. These licenses were awarded for the initial period of 5 years at Concession Fee (C.F.) of Rs. 3.70 crores, taking all the offers together. These licenses were to be renewed for a further period of 5 years subject to the 'satisfactory services' being provided by the respondent. 4. The following four pairs of trains were physically handed over for commencement of service to M/s Mahesh H Caterers: O.M.P. 305/2015 Page 3 (i) 2321/2322 (HWH-CSTM-HWH) (Handed over on 20.09.2002) (ii) 2069/2070 (Durg-Raigarh-Durg-) (Handed over on 1.4.2003) (iii) 2149/2150(1037/1038(Pune-Patna- Pune) (Handed over on 14.10.2003) (iv) 2561/2562 (New Delhi-Darbhanga- New Delhi) (Handed over on 14.12.2003). 5. The contracts for the remaining four pairs of trains could not be allotted to Mr.Mahesh M Chotai during his lifetime, due to certain operational difficulties of the IRCTC. These were later allotted to the respondent and License Agreement(s) were directly executed with her by the petitioner. 6. Mr.Mahesh M. Chotai died on 07.04.2004 and the respondent made an application to the Petitioner asking for the licenses to be transferred in her name as she was the legal heir of her late husband. Accepting the request of the respondent, it was decided by the Competent Authority that as paragraph 9 of the Catering Policy, 2000 permitted for the transfer of license to the legal heir of an individual or a sole proprietorship concern, the existing licenses being held by the firm under the proprietorship of Late Mahesh H. Chotai be transferred in the name of his legal heir, that is, the Respondent herein. Paragraph 9 of the Catering Policy, 2000 is reproduced hereunder: "Para 9: TRANSFER OF LICENCE Transfer of licence to the son/legal heir would be allowed only in the event of death. The licence can be transferred in the name of son/legal heir for the unexpired period of the agreement only on personal approval of the Divisional Railway Manager in case of O.M.P. 305/2015 Page 4 small units a