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IN THE HIGH COURT OF JUDICATURE FOR MADHYA PRADESH

AT JABALPUR

BEFORE

HON'BLE SHRI JUSTICE RAVI MALIMATH,

CHIEF JUSTICE

&

HON'BLE SHRI JUSTICE PURUSHAINDRA KUMAR KAURAV

ON THE 22nd OF MARCH, 2022

WRIT PETITION NO.4484 of 2022

Between:-

M/S R.N. VYAS SONS, A PROPRIETORSHIP

FIRM, THROUGH ITS PROPRIETOR/

AUTHORIZED

SIGNATORY,

MR.

SANKALP VYAS, S/O LATE SHRI S.D.

VYAS, AGED ABOUT 32 YEARS, HAVING

ITS REGISTERED ADDRESS AT-VYAS

VILLA, DESHBANDHUPURA, ITARSI,

MADHYA PRADESH-461111.

.....PETITIONER

(BY SHRI SIDDHARTH SHARMA- ADVOCATE)

AND

1.

WEST CENTRAL RAILWAY, THROUGH ITS

CHIEF COMMERCIAL MANAGER, WEST

CENTRAL RAILWAY, JABALPUR (MADHYA

PRADESH).

3.

SENIOR

DIVISIONAL

COMMERCIAL

MANAGER, DRM OFFICE, BHOPAL (MADHYA

PRADESH)

....RESPONDENTS

(BY SHRI CHANDRA MOHAN TIWARI-PANEL LAWYER)

W.P. No.4484 of 2022

- 2 -

--------------------------------------------------------------------------------------------------

- (Heard through Video Conferencing)

This appeal coming on for admission this day, Hon'ble Shri

Justice Purushaindra Kumar Kaurav, passed the following:

Advocates:
Siddharth Sharma,Assistant Solicitor General

The petitioner in the instant petition has challenged

communication dated 11.01.2022 (Annexure-P-6), made by the

Divisional Commercial Manager to Station Manager, West Central

Railway, Itarsi and Vidisha (M.P.), wherein, it has been stated that

the validity of the contract period of the petitioner with the

respondents was expiring on 16.01.2022 and the same has been

extended upto 31.03.2022 with certain conditions. The petitioner

prayed that the license period should not have been extended only

upto 31.03.2022 and status quo should be continued till further

orders to be issued by the head office with regard to renewal of the

license of the petitioner.

2.

The brief facts of the case are that on 10.11.2014, tender

notice was issued by the respondents for provision of catering

services at Itarsi Railway Station for a period of five years. On

07.06.2016, the bid of the petitioner was accepted and a letter of

acceptance for awarding license for the said work was issued in its

favour. The petitioner commenced its operation with effect from

08.08.2016. However, a master license agreement was executed

later on i.e. 24.06.2019, recognizing the fact that commencement

of the operation of the work had started with effect from

- 3 -

08.08.2016. The original agreed terms for which the license was

granted had expired. Hence vide order dated 29.12.2021, an

extension was granted which also expired on 16.01.2022. A

further extension was granted upto 31.03.2022.

3.

Learned counsel appearing for the petitioner submits that in

pursuance to some directions given by the Hon’ble Supreme Court

directing to maintain status quo with respect to minor catering unit,

the Railway Board issued instructions on 21.05.2019, directing all

Zonal Railways to maintain status quo in respect of minor catering

units as existing on 31.03.2019 for Indian Railways till further

orders are issued from the Railway Board. He further submits that

on 27.08.2019 again same directions have been reiterated to all

Principal Chief Commercial Manager of Zonal Railways. He also

places reliance on a clarification letter dated 31.12.2021 to state

that necessary action is required to be taken to see that the status

quo should continue with respect to renewal of catering license.

He, therefore, submitted that the respondents-authorities have erred

in limiting period of license only upto 31.03.2022 and have

ignored various directions given by the higher authorities.

4.

We have considered the submissions and have also perused

the record.

5.

It is an admitted fact that as per the terms of the contract, the

period for license is for five years. The commencement of the

- 4 -

period started with effect from 08.08.2016. After expiry of five

years, an extension was granted upto 16.01.2022, which was

further extended upto 31.03.2022. The intra departmental

communication of the railways would not automatically extend the

terms of the license. This Court in exercise of powers under

Article 226 of the Constitution cannot extend the period of license

beyond the period agreed between the parties in a validly executed

agreement. The right of the petitioner to operate catering shop

flows from the agreement and there is no specific extension

granted by the respondents beyond 31.03.2022.

6.

So far as the arguments made by the petitioner on the basis of

Clause-20 of the agreement is concerned, the same would also not

help the petitioner for the reason that the said clause provides that

in the event of any interpretation of the provision of the agreement

between the parties, the documents shall be read in the order of

precedence as mentioned therein i.e. railway latest policies as

applicable from time to time; the Articles of the Agreement; the

contents of Annexure(s) to the agreement; licencee’s response to

the Bid; and the Bid. Firstly, there does not arise any question of

interpretation of the provision of agreement as the terms of the

agreement are unambiguous with resp

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