License renewal subject to satisfactory performance; penalties on licensee justified rejection of renewal application.

JUDGEMENT :

P.Sam Koshy, J.

1. Heard Mr.E.Madan Mohan Rao, learned senior counsel representing Mr.K.R.K.V.Prasad, learned counsel for the petitioner and Mr.N.Bhujanga Rao, learned Deputy Solicitor General of India for respondents.

2. The instant is the Writ Appeal preferred by the writ petitioner assailing the order dated 08.01.2026 passed by the learned single Judge in WP No.35836 of 2025.

3. Vide the impugned order, the learned Single Judge had while dismissing the writ petition refused to entertain the writ seeking for a direction in the nature of writ of mandamus against the respondents for grant of renewal to the catering license with the petitioner as for the tea stall license at the Kachiguda Railway Station that was dealt with the petitioner.

4. The primary contention of the writ petitioner was that, the learned Single Judge has failed to take note of the application for renewal of the license in terms of the present operational Catering Policy. It was also contention of the petitioner that the learned Single Judge has also not taken into consideration the fact that the Catering Policy, 2010 stood subsequently superseded which was also not referred to and dealt with in the course of passing of the impugned order and the order of rejection of renewal of license is in contravention with the subsequent Catering Policy. Lastly it was contended that the learned Single Judge also ought to have appreciated the fact that it is the question of the livelihood of the petitioner more particularly when on the earlier occasion he was granted the tea stall license after surrendering all other tea stall licenses at other railway stations.

5. Be that as it may, undisputedly the Master License Agreement i.e., entered into between the appellant and the respondent No.1 dated 18.11.2022. The said agreement categorically has a clause dealing with tenure of the agreement which for ready reference is reproduced hereunder:

ARTICLE-2: TENURE OF THIS AGREEMENT:

2.1 The date of commencement of this agreement will be as provided for in Article 1.1 above. The tenure of this agreement will be Three (03) years for units located in A1, A, B and C category Railway stations. The tenure in the case of units located in D, E, F category stations will be Five (05) years. As this unit is situated in "A" Category Station, the tenure of this agreement will be 03 years from the date of commencement i.e., the actual date of renewal of the license i.e. from 30/07/2022 to 29/07/2025.

2.2.Renewal of the License:

Renewal of this agreement is not a matter of right of the licensee. This agreement is eligible for renewal at the end of the tenure subject to

(a) Satisfactory performance of the licensee during the tenure of this agreement. Railway will evolve, in due course, the criteria and parameters of satisfactory performance. Those criteria, as and when notified by Railways, will be automatically applicable to this agreement/ license.

(b) License fee and other applicable charges (including fines levied from time to time) well in time shall be paid and as per the due dates. No dues certificate from the concerned authorities should be enclosed along with the application for renewal.

(c) Submitting a fresh affidavit declaring that he does not have any other catering unit except the renewed unit on Indian Railways.

(d) The licensee must apply for renewal minimum six months before the date of expiry of this agreement.

(e) Signing a rider agreement duly incorporating changes in policy and incorporating the tenure of next agreement.

(f) In case the licensee of the renewed catering unit wishes to participate