O.M.P.(I) (COMM.) 283/2023 Page 1 of 5

$~46

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IN THE HIGH COURT OF DELHI AT NEW DELHI

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O.M.P.(I) (COMM.) 283/2023

AMBUJ HOTEL AND REAL ESTATE PVT LTD

..... Petitioner

Through:

Mr. Rajshekhar Rao, Senior

Advocate with Mr. S.S. Sisodia and Mr.

Saurav Kumar, Advocates

versus

MINISTRY OF RAILWAYS & ANR.

..... Respondents

Through:

Mr.

Neeraj,

Senior

Panel

Counsel with Mr. Vedansh Anand, Central

Government Pleader for R-1.

Mr. V. Siddharth and Ms. Udita, Advocates

for R-2.

CORAM:

HON'BLE MS. JUSTICE JYOTI SINGH

JUDGEMENT

JYOTI SINGH, J. (ORAL)

I.A. 16876/2023 (exemption)

1.

Allowed, subject to all just exceptions.

2.

Application stands disposed of.

O.M.P.(I) (COMM.) 283/2023 & I.A. 16875/2023 (stay)

3.

Present petition has been filed by the Petitioner seeking the

following reliefs:-

case.”

Digitally Signed by:KAUSHAL

KUMAR SACHDEVA

Location:

Signing Date:10.09.2023

19:40:50

Signature Not Verified

O.M.P.(I) (COMM.) 283/2023 Page 2 of 5

4.

Petitioner is engaged in the business of onboard catering

services in the Indian Railways providing newspapers, food and

packaged drinking water to the passengers on premium trains like

Rajdhani/Shatabdi, etc. Present petition concerns a license awarded to

the Petitioner in 2014 for onboard catering services in Telangana

Express (Train No.12723-24 HYB- NDLS) for a period of five years

upto 26.05.2019 with further renewal of five years, subject to

satisfactory performance by the Petitioner. Total license fee of

Rs.14,01,94,000/- was paid by the Petitioner on 22.05.2014 along with

taxes as per the tender terms. Security deposit was also made in the

form of Performance Bank Guarantee, after which Master License

Agreement was executed on 23.08.2014. On 22.08.2017, a Tripartite

Agreement was executed since Zonal Railway delegated its power to

IRCTC/Respondent No.2 herein.

5.

According to the Petitioner, renewal letter was issued on

12.12.2019, upon the services of the Petitioner being found

satisfactory, with revised license fee, renewing the contract for a

period of five years. Due to sudden outbreak of COVID-19, onboard

catering services were suspended in the trains and after resumption,

license period was extended till 2026. Despite resumption, two meals

were skipped during the train journey due to change of train timings,

resulting in financial losses to the Petitioner. Accordingly, Petitioner

ventilated its grievances to the Respondents bringing to light the

financial loss being suffered and requested for reduction in the license

fee by 30%, in terms of Clause 8.4 of the Master License Agreement,

but to no avail.

Digitally Signed by:KAUSHAL

KUMAR SACHDEVA

Location:

Signing Date:10.09.2023

19:40:50

Signature Not Verified

O.M.P.(I) (COMM.) 283/2023 Page 3 of 5

6.

Learned Senior Counsel for the Petitioner submits that instead

of taking note of the special circumstances, arising on account of

COVID-19 and reducing the license fee, IRCTC illegally sent a

demand notice dated 24.05.2022 to remit license fee of

Rs.1,87,19,440/-, to which the Petitioner sent a reply requesting

correct calculation of the license fee in terms of the relief given to all

licensees to deposit the license fee in instalments of three months. On

25.08.2022, Petitioner also requested to review the license fee on

account of change in train timings, but there was no response and

Petitioner made part payment of Rs.40,00,000/- towards license fee

for the period 28.08.2022 to 27.11.2022.

7.

It is further submitted that another show-cause notice was sent

on 31.07.2023 asking the Petitioner to remit Rs.1,43,34,496/- failing

which penalty will be imposed which was wholly arbitrary since the

whole dispute of reduction in license fee was p