Delhi High Court · 2025

W.P.(C) 6392/2025 Page 1 of 6 $~76 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 6392/2025, CM APPL. 29192/2025, CM APPL. 29193/2025, CM APPL. 29194/2025 M S HOTEL RAJASTHAN .....Petitioner Through: Mr. Sunil Dalal, Sr. Adv. with Mr. Jitender Mehta, Mr. Lalit Kumar, Mr. Abhinav Kumar, Mr. Shivam Pahal, Mr. Nikhil Beniwal, Ms. Shipra Bali, Ms. Riya Rana, Advocates (M:9625461696) versus INDIAN RAILWAY CATERING AND TOURISM CORPORATION LIMITED .....Respondent Through: Mr. Anshuman Choudhry, Advocate (M:8895592069) CORAM: HON'BLE MS. JUSTICE MINI PUSHKARNA 1. The present writ petition has been filed challenging the Termination Letter dated 08O R D E R % 14.05.2025 th2. Learned Senior Counsel appearing for the petitioner submits that the impugned Letter dated 08 May, 2025, issued by the respondent/Indian Railway Catering and Tourism Corporation Limited (“IRCTC”). th3. Attention of this Court has been drawn to Clause 5.12, which pertains to Obligations and Rights of Licensee, which reads as under: May, 2025, terminating the contract of the petitioner, has been issued on the basis of Clause 5.12 and Clause 6.10 of the Tender Document issued by the IRCTC. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:00:18 W.P.(C) 6392/2025 Page 2 of 6 “5. OBLIGATIONS AND RIGHTS OF LICENSEE xxx xxx xxx xxx xxx xxx” 4. Attention of this Court has also been drawn to Clause 6.10, pertaining to the Unsatisfactory services, which reads as under: “6. CONDITIONS GOVERNING THE PERFORMANCE OF THE LICENSE xxx xxx xxx xxx xxx xxx” 5. Learned Senior Counsel for the petitioner submits that the aforesaid Clauses, as relied upon by the respondent, pertain to any unlawful or illegal activity being carried out by a licensee and also with respect to cases of persistent complaint against the licensee. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:00:18 W.P.(C) 6392/2025 Page 3 of 6 6. Learned Senior Counsel for the petitioner further submits that Annexure-K of the said Tender Document provides the provisions, as regards deficiency and complaints against the licensee. 7. He draws the attention of this Court to Annexure - K of the Tender Document and in particular, Type-III of the deficiency complaints and penalties, which reads as under: “xxx xxx xxx xxx xxx xxx” 8. By referring to the aforesaid document, learned Senior Counsel for the petitioner submits that for complaints, as regards the overcharging and mishandling of passengers, a penalty of ₹ 25,000/- is levied in first Case, followed by penalty of ₹ 1,00,000/- in the second case, penalty of ₹ This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:00:18 W.P.(C) 6392/2025 Page 4 of 6 1,50,000/- in the third case, penalty of ₹ 2,50,000/- in the fourth case, followed by termination in the fifth case, of such complaint. 9. Learned Senior Counsel for the petitioner submits that this is the first time that such a complaint, as regards the overcharging and mishandling of passenger, has been made against the petitioner. He submits that for the complaint, as regards the overcharging and mishandling of the passenger, respondent at best, could have imposed a penalty of ₹ 25,000/-, upon the petitioner. 10. He submits that without issuance of any Show Cause Notice, Termination Letter dated 08th11. He further submits that the impugned Termination Letter dated 08 May, 2025, has been issued against the petitioner, which is against the tenor of the Principles of Natural Justice. th12. Learned Senior Counsel for the petitioner further draws the attention of this Court to Annexure P-5, which is a document dated 11 May, 2025, cannot be sustained in the eyes of law. th13. He submits that neither any explanation has been sought from the petitioner, nor any penalty has been imposed upon the petitioner, in terms of the Tender Document. April, 2025. He submits that in a similar situation with respect to another contractor, when there was complaint of assault and theft attempt, an Interim Incident Report regarding complaint, was called by the respondent. Further, a fine of ₹ 1,00,000/- was imposed upon the licensee, in the said case for mishandling of passengers. However, he submits that no such procedure has been followed in the present case, and the contract in favour of the petitioner has been terminated by the impugned Termination Letter. 14. Per contra, learned counsel for the respondent has shown to this This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:00:18 W.P.(C) 6392/2025 Page 5 of 6 Court the video pertaining to the incident. He submits that employee of the petitioner not only overcharged the bottled water from a passenger, but also manhandled the said passenger. 15. He further draws the attention of this Court to the Clause 9 of the Tender Document to submit that there is an arbitration clause in the present matter. He further relies upon Clause 6.10 of the tender document, to submit that in cases of complaint, the respondent has full power to take action without issuance of any notice. 16. Responding to the same, learned Senior Counsel for the petitioner submits that the present petition would be maintainable, as Principles of Natural Justice have not been followed in the present case. 17. Further, he submits that the respondent is guilty of discriminatory treatment against the petitioner, since the petitioner has not been treated in terms of the Clauses in the contract. 18. Having heard learned counsels for the parties, without going into the merits of the decision of the respondent, considering the fact that the impugned Termination Letter dated 08th19. Upon issuance of the said Show Cause Notice by the respondent, petitioner shall file his reply and submit requisite documents, as required by the respondent. May, 2025, has been issued against the petitioner, without issuance of any Show Cause Notice, it is directed that the respondent shall issue a Show Cause Notice to the petitioner, calling upon the petitioner to give his explanation. 20. Further, an opportunity of personal hearing shall also be granted to the petitioner by the respondent. 21. After grant of personal hearing to the petitioner, a Speaking Order This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 01/07/2025 at 22:00:18 W.P.(C) 6392/2025 Page 6 of 6 thereafter, shall be passed by the respondent. 22. This Court takes note of the submissions made by learned counsel for the respondent that after issuance of the Termination Letter dated 08th23. Accordingly, it is directed that interim arrangement, as made by the respondent in the train in question, shall continue during the period when the process of issuance of Show Cause Notice and grant of hearing to the petitioner, is underway. May, 2025, an interim arrangement has already been made by the respondent, in the train in question. 24. In case, the petitioner is aggrieved by the Speaking Order passed by the respondent, petitioner shall be at liberty to seek its remedies, in accordance with law. 25. It is directed that the aforesaid process shall be carried out by the respondent in a time bound manner, preferably, within a period of six weeks, from today. 26. It is clarified that this Court has not expressed any opinion on the merits of the case. Rights and contentions of both the parties are left open. 27. Needless to state, that any Speaking Order/fresh Order to be passed by the respondent, shall supersede the Termination Letter dated 08th28. With the aforesaid directions, the present writ petition, along with the pending applications, is accordingly disposed of. May, 2025. MINI PUSHKARNA, J MAY 14, 2025 au