{"id":382879,"date":"2026-04-30T18:00:42","date_gmt":"2026-04-30T12:30:42","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=382879"},"modified":"2026-04-30T17:50:03","modified_gmt":"2026-04-30T12:20:03","slug":"delhi-hc-stays-arbitral-award-on-irctc-licence-fee-revision","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/30\/delhi-hc-stays-arbitral-award-on-irctc-licence-fee-revision\/","title":{"rendered":"Delhi High Court stays arbitral award concerning IRCTC&#8217;s policy on revision of catering licence fee"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Delhi High Court:<\/span> Arising from a petition under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration and Conciliation Act, 1996<\/a>, assailing an arbitral award passed in disputes concerning licence fee revision under onboard catering contracts, the Single Judge Bench of Mini Pushkarna, J., found a prima facie case in favour of Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) and held that the balance of convenience and irreparable injury warranted protection, and accordingly stayed the operation of the findings of the arbitral award insofar as they pertained to IRCTC&#8217;s policy for licence fee revision consequent to tariff revision.<\/p>\n<p style=\"margin-bottom: 3%; font-weight: bold;\">Also Read: <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/01\/21\/del-hc-refuses-relief-against-irctcs-termination-of-catering-contract\/\" target=\"_blank\">Delhi HC refuses interim relief against IRCTC&#8217;s termination of catering contract; cites multiple passenger complaints and unsatisfactory service<\/a><\/p>\n<h3>Background<\/h3>\n<p style=\"margin-bottom: 3%;\">The respondent, a licensee, was awarded onboard catering contracts pursuant to a standard bid document. Letters of award and corresponding Master Licence Agreements were executed for specified trains. Subsequently, in terms of the Catering Policy dated 27 February, 2017, the authority to manage catering services and reassess licence fees was vested in the IRCTC, following which tripartite agreements were entered into among the concerned parties.<\/p>\n<p style=\"margin-bottom: 3%;\">Thereafter, on 14 November 2019, the Railway Administration issued a commercial circular, revising catering tariffs. The implementation of the revised tariffs was, however, deferred owing to the C<span style=\"font-size: 10.0pt;\">OVID<\/span>-19 Pandemic and the consequent suspension of catering services. Upon resumption of services in 2022, IRCTC undertook a reassessment of sales and, in 2023, raised demand notices seeking enhanced licence fees based on the revised tariffs.<\/p>\n<p style=\"margin-bottom: 3%;\">The respondent challenged the said demand notices, contending that they were arbitrary, unilateral, and unsupported by the contractual framework. The dispute was referred to arbitration. By the impugned award, the arbitrator held the demand notices to be invalid and unenforceable, inter alia observing that the revision of licence fees operated retrospectively and was unsustainable.<\/p>\n<p style=\"margin-bottom: 3%;\">Aggrieved by the impugned award, IRCTC instituted a petition under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration and Conciliation Act, 1996<\/a>, seeking its setting aside.<\/p>\n<h3>Parties&#8217; Submissions<\/h3>\n<p style=\"margin-bottom: 3%;\">On behalf of IRCTC, it was contended that Clause 8.3 of the Master Licence Agreement expressly permitted revision of licence fees upon revision of catering tariffs, including reassessment of sales from the date of such revision. It was submitted that although the tariff revision was effected in 2019, its implementation was delayed due to the pandemic, and upon resumption of services in 2022, IRCTC validly reassessed sales and raised corresponding demands.<\/p>\n<p style=\"margin-bottom: 3%;\">It was further argued that the arbitrator erred in holding that the revision amounted to a retrospective imposition, despite acknowledging IRCTC&#8217;s authority to reassess sales. The findings invalidating the demand notices and characterising the reassessment process as arbitrary and violative of principles of natural justice were also assailed as contradictory and unsustainable. It was additionally contended that the impugned award adversely impacted IRCTC&#8217;s policy framework.<\/p>\n<p style=\"margin-bottom: 3%;\">Per contra, the respondent-licensee submitted that the reassessment process lacked transparency and was not based on a reasonable or disclosed methodology. It was contended that the absence of stakeholder consultation rendered the process arbitrary, and therefore, the conclusions reached by the learned arbitrator were justified and did not warrant interference.<\/p>\n<h3>Analysis and Decision<\/h3>\n<p style=\"margin-bottom: 3%;\">The Court noted that a prima facie case had been established in favour of the petitioner, IRCTC. The Court further observed that denial of interim relief would result in irreparable harm to the petitioner, and that the balance of convenience also lay in its favour.<\/p>\n<p style=\"margin-bottom: 3%;\">In view thereof, the Court granted interim protection and directed that, pending further consideration, the findings in the impugned award insofar as they pertained to IRCTC&#8217;s policy regarding revision of licence fees pursuant to tariff revision shall remain stayed until the next date of hearing.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\"><span style=\"font-style: italic;\">IRCTC<\/span> v. <span style=\"font-style: italic;\">Standard Platter Catering and Hospitality (P) Ltd.<\/span>, OMP (COMM) No. 206 of 2026, decided on 27-4-2026<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Petitioner:<\/span> Saurav Agarwal, Manisha Singh, Kiran Devrani, Anshuman Chowdhury, Parmeet Singh, Samayra Adlakha, Anadi Mishra, Kanav Khatana, Jyoti Singh, Advocates.<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the Respondent:<\/span> Jitender Mehta, Lalit Kumar, Advocates<\/p>\n<h3 style=\"color: #000080;\">Buy Arbitration and Conciliation Act, 1996 &nbsp; <a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\" target=\"_blank\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png\" alt=\"arbitration and conciliation act, 1996\" width=\"191\" height=\"300\" class=\"aligncenter size-large wp-image-294803\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png 191w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-38x60.png 38w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996.png 620w\" sizes=\"auto, (max-width: 191px) 100vw, 191px\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">The Court granted interim protection to IRCTC, holding that tariff-linked revision of licence fee raises a prima facie case and warrants a stay on the arbitral findings impacting IRCTC&#8217;s policy framework.<\/p>\n","protected":false},"author":67539,"featured_media":382880,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[103362,103361,2543,3689,103365,69176,103360,103364,84117,103363],"class_list":["post-382879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-arbitral-award-stayed","tag-catering-contracts","tag-Delhi_High_Court","tag-IRCTC","tag-irctc-policy","tag-justice-mini-pushkarna","tag-licence-fee-revision","tag-onboard-catering","tag-section-34-arbitration-act","tag-tariff-revision"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Delhi HC stays arbitral award on IRCTC licence fee revision | SCC Times<\/title>\n<meta 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Supreme Court sets aside multi crore Arbitral Award against IRCTC in Catering Contract dispute","author":"Sucheta","date":"November 12, 2025","format":false,"excerpt":"The Arbitrator was, therefore, not justified in undertaking interpretation of the contractual terms contrary to language used therein, which merely mirrored the policy decisions of the Railway Board which were binding in nature\u201d.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"irctc catering contract dispute arbitration","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/irctc-catering-contract-dispute-arbitration.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/irctc-catering-contract-dispute-arbitration.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/irctc-catering-contract-dispute-arbitration.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/irctc-catering-contract-dispute-arbitration.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":291009,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/05\/01\/section-34-of-arbitration-act-a-well-reasoned-arbitral-award-cannot-be-interfered-with-delhi-high-court-on-limited-scope-of-interference-legal-news-legal-research-updates\/","url_meta":{"origin":382879,"position":3},"title":"[Section 34 of Arbitration Act] A well-reasoned arbitral award cannot be interfered with: Delhi High Court","author":"Editor","date":"May 1, 2023","format":false,"excerpt":"The Arbitral Tribunal is a creature of Contract, and the Contract is the only basis on which the Learned Tribunal should adjudicate, apart from the general provisions of law and jurisprudence.","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/delhi-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\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/delhi-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":296925,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/07\/15\/delhi-hc-non-consideration-of-clause-in-concession-agreement-does-not-amount-to-patent-illegality\/","url_meta":{"origin":382879,"position":4},"title":"Delhi High Court | Non-consideration of a clause in a concession agreement not an error that goes into the root of the award; 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