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2024 Supreme(Kar) 90

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

Advocates Appeared:
For the Petitioner: Sri Jayakumar S.Patil, Sr.Adv. a/w Sri Mahammad Tahir A., Adv.
For the Respondents: Sri. Tushar Mehta, Solicitor General of India for Sri S. Rajashekar, Adv., for Smt. Sadhana Desa, CGC; Sri. Abhinay Y.T., Adv.

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 services.

Headnote:(A) Commercial Circular No. 20 of 2017; Commercial Circular No. 24 of 2023 - Writ petitions challenging the addendum to the Catering Policy - The petitioner sought to quash the impugned addendum for lack of cabinet approval, alleging it contravened prior policy provisions which mandated IRCTC's role in catering - The Court held that the Railway Minister and Board were competent to amend the policy without prior cabinet sanction, validating the addendum on grounds of operational necessity for hygiene and accountability - Judicial restraint upheld in administrative matters, with no rights disturbed for existing contractors. (Paras 1-18)

Facts of the case:
The petitioner, a registered Association, challenged the Commercial Circular No. 24 of 2023, arguing it was improperly issued without cabinet oversight, alleging it deviated from the approved Catering Policy of 2017 which mandated specific operational procedures for catering services managed by IRCTC. The response from the Railways justified the changes due to logistical challenges and quality issues encountered in service delivery. (Paras 2-18)

Findings of Court:
The Court rejected the petitions, affirming that the Railway Board and Minister possessed the authority to modify catering policies as needed, with an emphasis on public interest and maintaining food quality standards on trains, and did not find the addendum to disrupt existing contracts. (Paras 1-18)

Issues: Determining the legality of the addendum without prior cabinet approval and the scope of judicial interference in administrative policy-making. (Paras 1-18)

Ratio Decidendi: The Court emphasized the principle of judicial restraint in matters of administrative decisions, reaffirming that operational policies in public interest, particularly regarding hygiene in catering service, reside within the jurisdiction of the Railway authorities, thus barring judicial substitution of administrative expertise. (Paras 1-18)

Result: Writ Petitions rejected.

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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