The court upheld the railway's authority to enhance license fees based on the terms of the agreement and policy decisions.

( 1 ) HEARD learned counsel for the parties.

( 2 ) THIS writ petition has been filed against the impugned order dated 28-4-1998 annexure 1 to the writ petition enhancing the licence fee payable by the petitioner by 600% It has also been prayed that the respondents be directed to place the Meerut city Railway Station under the category of medium station instead of its placement in the large category of station as per order dated 31-10-1997. The petitioners have further prayed for a mandamus directing the respondents not to interfere in any manner in their operating the stalls and trollies in pursuance to the existing agreements and provide all privileges e. g. passes and medical benefits etc. to the staff of the petitioners. The petitioner has also prayed that the respondents be directed to review the agreement for running the stalls and trollies at meerut City Railway Station on the expiry of the existing agreement.

( 3 ) THE petitioners were engaged in the business of vending at Meerut City Railway station through stalls and trollies of different eatables, snacks, fruits and other items and providing service to the passengers of various trains passing through Meerut railway station. It is alleged that the petitioners are doing this business for the last more than 30-40 years.

( 4 ) THE work of running the stalls and trollies over the various railway stations are given by the Railway Administration of various divisions through an agreement executed in favour of the contractors. True copy of the agreement dated 13-6-1995 executed between the Railway Administration, northern Railway and petitioner No. 7 is annexure 2 to the writ petition. In that agreement the number of stalls and trollies and vendors operated by the petitioner No. 7 and the monthly rate of licence fee, rent and other charges are shown The monthly licence fee and rent in the case of the petitioner 7 is rs. 1594/- which has been made applicable w. e. f 1-4-1992 in case of all the petitioners. It is alleged that there has been arbitrary enhancement of the licence fee. It is also alleged that the fee has been enhanced without considering the letter of the Railway Board dated 2-1-1987 Annexure 3-A to the writ petition. It is further alleged that the licence fee cannot be enhanced during the continuance of the existing contract.

( 5 ) A counter-affidavit has been filed by the Railways. In paragraph 4 of the same it is alleged that the contract with the railway is only for five years. The same can be granted further on the fresh terms and conditions with the same person or to new persons. According to the terms and conditions in paragraph 3 (c) of the agreement the railway can enhance the licence fee from time to time at the sole discretion of the Northern Railway Administration. Photocopy of one of such agreement is Annexure C. A. 1. For the purpose of fixing the licence fee of the catering/vending unit the stations of delhi division are divided into four categories : (1) special, (2) large, (3) medium and (4) small. These categories are fixed on the basis of the number of passengers using the railway stations, sale of vending and catering unit population of the city and also the number of trains passing through the station vide circular of the Railway Board dated 2-9-1986 issued from the office of the D. R. M. Northern Railway, Delhi Annexure C. A. 2 to the counter-affidavit. In paragraph 6 it is alleged that the Railway Board authorised the D. R. M. , Nothern Railway, Delhi to enhance the licence fee. The licence fee was last revised in the year 1983-84. In 1992 the licence fee was enhanced only three times than the existing charges after considering the report of the screening committee.

( 6 ) IN paragraph 8 of the counter-affidavit it is alleged that the cumulative effect of the increase in the price of eatables and the increase in number of passengers are likely to increase by approximately three times in the earning of the vending contractors. Henc