Summary: The Delhi High Court rejected an appeal by R.K. Associates who were challenging the ending of their catering agreement with IRCTC. The court found the termination justified because of ongoing complaints about service quality.
Background of the Case
R.K. Associates and Hoteliers Pvt. Ltd. had an agreement with the Indian Railway Catering and Tourism Corporation Limited (IRCTC) to provide food services on trains. This agreement started on May 1, 2024, and was supposed to last until September 11, 2029.
Agreement Details
The agreement included:
- Part A: Building and running main kitchens.
- Part B: Providing food services on trains, including the PURI-NDLS Purushottam Express running between New Delhi and Puri.
Problems Start
Problems began when R.K. Associates complained about unauthorized food sellers affecting their business. However, IRCTC sent them warnings in April 2025, pointing out poor service quality.
Ending the Agreement and Legal Proceedings
- Ending the Agreement: On May 2, 2025, IRCTC ended the agreement because of bad responses and ongoing problems.
- Legal Fight: R.K. Associates tried to get temporary help from the court, but their request was denied on December 12, 2025, allowing IRCTC to end the agreement.
Appeal and Court's Decision
- Appeal: R.K. Associates argued against the ending of the agreement, saying it was unfair and broke the agreement's rules.
- Court's Ruling: Justice Mini Pushkarna supported the ending of the agreement, highlighting the many complaints and IRCTC's right to end it based on the rules in the agreement.
Key Points from the Court's Judgment
- Complaints: More than 700 complaints were recorded, including problems with cleanliness and overcharging.
- Agreement Rules: The court found that IRCTC followed the agreement's rules for ending the contract, which allowed them to do so because of ongoing complaints without giving prior notice.
- Public Interest: The court noted that bringing back the agreement was not in the public's best interest because of the service problems.
Summary of Verdict
The court decided that the Arbitrator's decision was fair and did not need to be changed. R.K. Associates' appeal was rejected, confirming that good service quality is very important in public agreements.
