Bombay High Court said, ‘IRCTC agent, licensee of Railways’
Mumbai: The Bombay High Court has said that Indian Railway Catering and Tourism Corporation Limited (IRCTC) can at best be called an agent/licensee of the Railways and the ownership of fast food sites at railway stations remains with the Railways.
A division bench of Chief Justice DK Upadhyay and Justice Arif Doctor on November 28 dismissed the plea of Dinesh Singh Tomar Catering Services challenging the e-tender issued by the Railways on August 2, 2022, for setting up and managing a fast food unit. In Satara, which has been lying vacant for years.
IRCTC is a Government of India undertaking created by the Union Ministry of Railways to provide catering and other related services. To boost the business of IRCTC, the Ministry of Railways issued the Catering Policy 2017, embodied in the circular dated 27 February 2017.
Railway Board Commercial Circular
A commercial circular was issued by the Railway Board on March 8, 2022 containing certain guidelines for setting up of food plazas/fast food units/multicuisine restaurants by zonal railways on vacant/non-utilized spaces available at railway stations. It contemplated that the units were to be allotted through open tender process.
Instead of acting as per the Railway Board circular, IRCTC issued a tender notice inviting bids for operating the fast food unit at Satara railway station on March 11, 2022. After following due process, the contract was awarded to the petitioner, who deposited Rs 1,66,875 as security.
Thereafter a request was sent to the Group General Manager of Western Region of IRCTC to hand over the site to the petitioner. Since the site was not allotted, the petitioner approached the High Court.
Railways itself issued a tender notice for the said unit on August 2, 2022 and it was awarded to Madhya Pradesh based company M/s. Star Foods Associates.
“IRCTC issued tender illegally”
Opposing the petition, Railways’ lawyer JS Saluja said that IRCTC issued the tender illegally on March 11, 2022, within three days from the date of its circular.
The court said that if the Railway Board feels the administrative necessity of taking over the control and management of the vacant sites from IRCTC, “no exception can be given to such a decision to anyone including the petitioner”.
“IRCTC, in fact, does not own the sites. The owner of the sites is the Railways which…handed over the sites to IRCTC for limited management purposes only,” the court said. It further said that IRCTC could not have issued the tender on March 11, 2022 and dismissed the plea.
