{"id":346300,"date":"2025-04-23T10:00:56","date_gmt":"2025-04-23T04:30:56","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=346300"},"modified":"2025-04-29T09:30:54","modified_gmt":"2025-04-29T04:00:54","slug":"irctc-revised-menu-unpaid-bills-arbitration-calcutta-high-court-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/04\/23\/irctc-revised-menu-unpaid-bills-arbitration-calcutta-high-court-legal-news\/","title":{"rendered":"Calcutta High Court appoints sole arbitrator to resolve a dispute over unpaid bills following revised menu directions by IRCTC"},"content":{"rendered":"
\n

Calcutta High Court:<\/span> An arbitration application was filed by a service provider seeking appointment of an arbitrator under the Arbitration and Conciliation Act, 1996<\/a>, to adjudicate disputes regarding the interpretation of a contract for the supply of meals, logistics support, and transportation services provided by the petitioner to IRCTC, which subsequently led to claims for unpaid dues following an alteration in menu requirements imposed by IRCTC. Shampa Sarkar, J., appoints Mr. Probal Kumar Mukherjee, Senior Advocate, Bar Association, as the sole Arbitrator, to arbitrate upon the dispute between the parties.<\/p>\n

The petitioner entered into a contractual agreement with IRCTC to provide catering and ancillary services. The contract specified a fixed menu that the petitioner was obligated to follow. However, a significant change occurred on 15-11-2022, when the Ministry of Railways issued a notification granting IRCTC the authority to customize menus. This customization could include regional cuisines, seasonal delicacies, festival food, baby food, diabetic-friendly items, and other health-oriented options.<\/p>\n

Acting on this policy change, IRCTC developed and circulated a revised menu to all General Managers across railway zones, including the petitioner’s zone. The petitioner, being contractually bound to IRCTC and acting upon their directions, implemented the new menu and began providing meals accordingly. In consequence, the petitioner raised monthly bills from December 2023 through September 2024, reflecting the increased cost associated with the additional menu offerings. Despite repeated invoices, IRCTC failed to remit payment, leading to a monetary dispute.<\/p>\n

Owing to the unresolved financial dispute, the petitioner invoked the arbitration clause of the contract via notice dated 24-12-2024. With no arbitrator being appointed under the terms of the agreement, the petitioner approached the Court under Section 11 of the Arbitration and Conciliation Act, seeking judicial appointment of a sole arbitrator.<\/p>\n

The Court examined the arbitration clause contained in Clause 8 of the Notice Inviting E-Tender (NIT), which governed the agreement between the parties. The clause explicitly mandated that any disputes between the service provider and IRCTC would be referred to arbitration, with a sole arbitrator to be appointed by the Group General Manager, Kolkata. However, considering Section 12(5) read with the Fifth and Seventh Schedules of the Arbitration and Conciliation Act, 1996<\/a>, such unilateral appointment mechanisms have been rendered invalid in law. Hence, the petitioner’s approach to the Court for appointment of an independent arbitrator was found to be legally appropriate.<\/p>\n

On the substantive issue raised by IRCTC, whether the revised menu was covered under the original contract, the Court rejected the preliminary objection. It referred to a clause which expressly allowed IRCTC\/Railways to unilaterally change the supply schedule, including the menu, and made such decisions binding on the service provider. The Court found that the revised menu, though introduced later based on Government policy, was indeed implemented by IRCTC under a contractual clause that permitted such unilateral modifications. Consequently, the dispute over the revised menu fell within the ambit of the original contract, at least prima facie.<\/p>\n

Further, the Court addressed IRCTC’s apprehension that the petitioner may challenge the Government policy itself. This concern was dismissed as unfounded, with the Court clarifying that the petitioner was not challenging the policy but was merely seeking compensation for services rendered under the revised menu.<\/p>\n

The Court held that the arbitration clause contained in the contract was valid and applicable to the present dispute. It acknowledged that although the original clause allowed IRCTC to unilaterally appoint an arbitrator, this mechanism stood invalid under current arbitration jurisprudence. Therefore, the Court was empowered to appoint an arbitrator under Section 11 of the Act.<\/p>\n

Accordingly, the application was allowed, and Mr. Probal Kumar Mukherjee, Senior Advocate, was appointed as the sole arbitrator to adjudicate the disputes between the parties. His appointment was made subject to compliance with the disclosure and independence requirements under Section 12 of the Arbitration and Conciliation Act. The arbitrator was granted liberty to fix his own remuneration in accordance with the statutory Schedule.<\/p>\n

[Doon Caterers v. IRCTC, 2025 SCC OnLine Cal 3423<\/a>, decided on 08-04-2025<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Ms. Kishwar Rahman, Adv., Mr. Prateek Kumar, Adv., Ms. Anugraha Sundas, Adv. …for the petitioner<\/p>\n

Mr. Sarosij Dasgupta, Adv., Mr. Sabyasachi De, Adv., Ms. Afreen Begum, Adv. …for the respondent<\/p>\n

Buy Arbitration and Conciliation Act, 1996   HERE<\/a><\/h3>\n

\"arbitration<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Government of India, Ministry of Railways, by a notification permitted the IRCTC to have a flexibility and customize the menu by including regional cuisines\/preferences, seasonal delicacies, festival food, baby food, diabetic food, health food options.<\/p>\n","protected":false},"author":67516,"featured_media":314821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[81287,81281,72592,72033,80197,81284,3689,81285,81283,81280,81286,81282],"class_list":["post-346300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-appointmentofar","tag-arbitrationcase","tag-arbitrationlaw","tag-calcuttahighcourt","tag-contractdispute","tag-dooncaterers","tag-IRCTC","tag-irctcmenu","tag-menudispute","tag-railwaycatering","tag-section11arbitration","tag-unpaidbills"],"yoast_head":"\nCalcutta HC appoints arbitrator in IRCTC catering dispute over revised menu and unpaid bills| SCC Times<\/title>\n<meta name=\"description\" content=\"Calcutta High Court appoints a sole arbitrator to adjudicate a catering dispute between 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In the present application under Section 11(6) of the Arbitration\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/06\/calcutta-court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6750,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/08\/17\/indian-railways-and-irctc-are-not-guilty-of-abuse-of-dominance-but-service-charges-on-e-ticking-ought-to-be-done-away\/","url_meta":{"origin":346300,"position":2},"title":"Indian Railways and IRCTC are not guilty of abuse of dominance but service charges on e-ticketing ought to be done away","author":"Sucheta","date":"August 17, 2015","format":false,"excerpt":"Competition Commission of India: In its majority order, the competition watchdog ruled that allegations of abuse of dominant position in the relevant market of \u201ctransportation of passengers through railways across India including the ancillary segments like ticketing, catering on board, platform facilities etc. provided by Indian Railways\u201d are misconceived and\u2026","rel":"","context":"In "Tribunals\/Commissions\/Regulatory Bodies"","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":292321,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/05\/16\/calcutta-high-court-appointed-sole-arbitrator-despite-forgrry-fraud-allegation-scc-blog-legal-news-research\/","url_meta":{"origin":346300,"position":3},"title":"Allegation of Forgery\/Fraud inter partes does not render dispute non-arbitrable; Calcutta High Court appoints sole arbitrator","author":"Ritu","date":"May 16, 2023","format":false,"excerpt":"The Court opined that the mere potential or presence of criminal proceedings deriving from the same circumstances would not exclude the issue from being resolved through arbitration.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":243107,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/01\/calcutta-high-court-judge-justice-ashis-kumar-chakraborty-passes-away\/","url_meta":{"origin":346300,"position":4},"title":"Calcutta High Court Judge, Justice Ashis Kumar Chakraborty passes away","author":"Bhumika Indulia","date":"February 1, 2021","format":false,"excerpt":"Justice Ashis Kumar Chakraborty passed away on 30-01-2021 due to cardiac arrest. About He was Born on December 12, 1965. Graduated in Law (five years) from the University of Calcutta in November, 1992. Was enrolled as an Advocate on January 29, 1993. Practised mainly in the High Court at Calcutta\u2026","rel":"","context":"In "Hot Off The Press"","block_context":{"text":"Hot Off The Press","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/hot_off_the_press\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/ashis-kumar-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/ashis-kumar-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/ashis-kumar-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/ashis-kumar-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/02\/ashis-kumar-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":272655,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/08\/30\/calcutta-high-court-illegal-procedure-for-appointment-of-arbitrator-does-not-render-arbitration-agreement-illegal-in-toto-guiding-principles-for-appointment-of-arbitrator-reiterated\/","url_meta":{"origin":346300,"position":5},"title":"Calcutta High Court | Illegal procedure for appointment of Arbitrator does not render Arbitration agreement illegal in toto; Guiding Principles for Appointment of Arbitrator reiterated","author":"Editor","date":"August 30, 2022","format":false,"excerpt":"\u00a0 \u00a0 Calcutta High Court: In a petition challenging the appointment of sole Arbitrator by the respondent, Shekhar B. Saraf, J., held that merely because an arbitration clause provides for an illegal method of appointment of arbitrator, it does not come to an end and after removing the illegal portion\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Calcutta High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/calcutta_high_court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/346300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67516"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=346300"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/346300\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/314821"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=346300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=346300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=346300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}