Point of Law : Minimum license fee is to be fixed realistically, equitably in order to have a fair, just and equitable fixation of license fees without adversely effecting the quality of service. In the opinion of this Court, taking into consideration the materials on record.

JUDGMENT :

Heard Mr. R.Dubey, the learned counsel for the Petitioners and Mr. B. Sarma, the learned Standing Counsel for the NF Railway.

2. All these nine writ petitions are taken up for disposal together as the facts are similar and the questions of law involved therein are also similar.

3. All the writ petitioners in the nine writ petitions herein have obtained licenses from the Railway Authorities for running their units by making payment of a fixed monthly rent known as the license fee. The petitioners herein have entered into respective agreements with the Railway Authorities and their period of licenses have been extended from time to time alongwith the renewal of their agreements. It is apparent from the records of each of the writ petitions that their agreements have been renewed up till 30.10.2005 and thereafter there has been no renewal of their agreements.

4. The Respondent No. 1 had issued a catering policy by the Commercial Circular No. 35/2010. For the sake of convenience, the said catering policy herein is after referred to as the Catering Policy of 2010. The record further reveals that the said catering policy came into effect on 21.07.2010. Pursuant to the issuance of the said Catering Policy of 2010, another Commercial Circular No. 37 of 2010 was issued whereby various operative instructions were issued for implementation of some of the aspects of the policy. Clause 2 of the said Commercial Circular No.37/2010 dated 9.8.2010 relates to recovery of license fee. As the said Clause 2 is relevant, the same is quoted herein below:-

“2. Recovery of License Fee :

In the light of the Catering Policy, 2010, the following is proposed.

(i) The arrear of license fees for licences awarded by zonal railways will be recovered by zonal railways at the rate assessed/paid by the licensee prior to the introduction of the GDP formula subject to a minimum of 12% of the assessed annual sales turnover with an increase of 10% for every 3 years for GMU and SMU at ‘A’, ‘B’ and ‘C’ category stations as the case may be upto the time the contract is handed over to the Railways by IRCTC. Since as per the policy, a minimum increase of 10% is made at the time of each renewal which is after every 3 years for GMU and SMUs at A, B and C category stations. The arrears of license fee for licences awarded by IRCTC shall be recovered by IRCTC, prior to handling over to zonal railways.

(ii) Zonal Railways will assess the license fee accordingly and ensure that the same is deposited by the licensees.

(iii) In the event of failure of the licensee to deposit the dues within 3 months of taking over by zonal railways, the said contract will deemed to have expired.

(iv) After taking over the license the zonal railways henceforth will reassess the license fee based on the parameters stated in the new Catering Policy and the license fee so assessed shall be levied with prospective effect at the time of renewals after the date of issue of new policy. The application for renewal will be considered by the Zonal Railways only after payment of all dues, license fee and arrears.”

5. The record further reveals that on 4.11.2010 on behalf of the Divisional Railway Manager (C), N.F. Railway, Alipuduar Junction, a notice was issued to all catering and vending licensees of “A” & “B” class stations. In terms with the said communication all the catering and vending licensees were asked to deposit the monthly license fee of their units to the concerned S.S. immediately as per the existing rate. It was also mentioned that if there was any arrear upon fixation of the revised license fee accrued against the category/vending unit at a later stage, that should also be paid by the said catering and vending licensee on receipt of the same from their end. It seems that the said communication was issued in terms with Sub-Clauses (i) of Clause 2 of the Circular dated 9/8/2010. Subseq