IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M. NAGAPRASANNA, J.
South Western Railway Catering Contractors Association (Regd.), Represented By Its General Secretary, V.S. Manogar, S/o. Late D.S. Vital – Petitioner
Versus
The Union of India, The Ministry of Railways, Represented By Its Secretary and Ors. – Respondents
Writ Petition No.4162 of 2024 (GM – RES) c/w Writ Petition No.4296 of 2024 (GM – Ten)
Decided On : 19-02-2024
| Table of Content |
|---|
| 1. overview of catering policy and its implications. (Para 2 , 3) |
| 2. arguments for and against the addendum. (Para 4 , 5 , 6) |
| 3. court's observations on administrative authority. (Para 7 , 8) |
| 4. final ruling and implications for public interest. (Para 12 , 13 , 14 , 15 , 16 , 17) |
ORDER :
The petitioner in Writ Petition No.4162 of 2024 calls in question a Commercial Circular notified on 14-11-2023/Catering Policy by which addendum is issued to paragraphs 1 and 3 of the Catering Policy of the year 2017 issued by the 3rd respondent/Director (Tourism and Catering), Railway Board of the Ministry of Railways and has sought for certain consequential reliefs by issuance of a direction in the nature of mandamus.
The companion petition, Writ Petition No.4296 of 2024 is an offshoot of Writ Petition No.4162 of 2024, as subsequent tender notified pursuant to the policy in Circular No.24 of 2023 is called in question in the said writ petition. Therefore, the facts obtaining in Writ Petition No.4162 of 2024 are narrated.
2. Sans details, facts in brief are as follows:-
The petitioner is a registered Railway Catering Contractors Association, registration of which is said to have been with effect from 30-11-2006. The petitioner is a conglomeration of catering contractors in the Railways. On 25-02-2016 the Union of India through the Railway Minister presented its Railway Budget. In the said Railway Budget certain assurances were projected with regard to catering and stalls at stations. This results in notification of a policy on 27-02-2017. The budget speech was incorporated in the preamble to the notification. The policy was called Catering Policy, 2017 which was notified by Commercial Circular No.20 of 2017. The policy was put in place and catering services were undertaken by several contractors or even the Railways in terms of the policy.
3. On 12-10-2023 expression of interest was notified for the interested contractors seeking empanelment for provision of on-board catering services in various types of trains of Indian Railways. The members of the petitioner/Association expressed their interest and are said to have been empanelled as eligible persons who could be considered for award of contracts as and when the tender would be notified. The eligibility of members of the Association of the petitioner is valid up to 31-12-2024. Therefore, the empanelment of several catering contractors is valid till the end of current year. When things stood thus, a commercial circular in Commercial Circular No.24 of 2023 is notified by the respondents/ Railways. This was an addendum to paragraphs 1 and 3 of the Catering Policy of 2017. Certain changes were brought into paragraphs 1 and 3 of the subsisting catering policy of 2017. The challenge is to the said addendum brought into the aforesaid paragraphs, of the 2017 policy. The matters are heard by the consent of the parties.
4. Heard Sri Jayakumar S.Patil, learned senior counsel appearing for the petitioner and Sri Tushar Mehta, learned Solicitor General of India appearing for the respondents and Sri Abhinay Y.T., learned counsel for the caveator/Respondent No.4 in W.P.No.4296 of 2024.
SUBMISSIONS:
PETITIONER’S:
5. The learned senior counsel Sri Jayakumar S.Patil would contend that earlier Catering Policy of 2017 was pursuant to a decision of the cabinet, as the Union of India through the Minister for Railways while presenting the Budget had projected a particular policy which was brought into effect. It was a cabinet decision. Therefore, any addendum to the said policy should necessarily go before the cabinet. In the case at hand, the impugned addendum is done by the Minister for Railways and the Railway Board. Therefore, it is tinkering or addition done without competence. In effect, the submission is that the addendum should be quashed on the score that it is a product of incompetence. He would contend that paragraphs 1 and 3 of the Catering Policy clearly indicated as to how the kitchens sho
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The Railway Minister and Board have authority to amend operational policies without cabinet approval, as long as such amendments serve public interest in maintaining quality and hygiene in catering s....
The court upheld the Railway's amended catering policy, emphasizing judicial restraint in policy-making and affirming that amendments serve public interest by enhancing food quality and accountabilit....
The court established that the state can impose stringent eligibility criteria in public tenders to ensure quality and accountability, provided such criteria are not arbitrary or discriminatory.
The court upheld the revised eligibility criteria in the Catering Policy, emphasizing public interest in improving food quality and hygiene, while rejecting claims of monopoly and discrimination.
The court upheld the Railway Board's authority to set stringent eligibility criteria for catering contracts, emphasizing public interest and accountability in food services on trains.
Point of law: Nature of dispute between the members of the petitioners association and the Railways cannot be brought within the ambit of the dispute resolution clause of the Agreement, i.e., Article....
The court ruled that the renewal of food stall licenses must adhere to the Catering Policy 2010, emphasizing the rights of existing licensees despite the expiration of their licenses.
Tender-based catering licenses under 2017 policy non-renewable per agreement terms; older code inapplicable excluding tenders; no perpetual right after prior binding judgments dismissing renewal clai....
Licenses under Catering Policy are subject to renewal only upon satisfactory performance; violations of service standards invalidate renewal expectations.
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