GHANSHYAM Vs. U.O.I

JUDGEMENT

(1.) IN these writ petitions, the petitioners are the licencees of the respondent - Indian Railways for providing catering/ vending services at railway stations and their contracts are being renewed from time to time. They had been paying the licence fees to the Indian Railways @ 12% of the annual sale turnover. Vide Circular No. 51 of 2005 dated 09.12.2005, the Railway Board decided to revise the licence fees in respect of the Category D,E&F Railway Stations. It was decided that for new static units or those units for which the contract was being renewed @ 12% licence fee shall be charged subject to minimum of lump sum amount of Rs.1 lac per annum refreshment rooms, Rs.60,000/ - per annum for stalls and Rs.12,000/ - for trolleys at Category D Stations, Rs.60,000/ - per annum for refreshment rooms, Rs.30,000/ - per annum for stalls and Rs.9,000/ - per annum for trolleys at Category E Stations and Rs.20,000/ - per annum for stalls and Rs.6,000/ - per annum at category F Stations.

(2.) PURSUANT to the aforesaid circular, demands were raised against the petitioners to pay the arrears of licence fees calculated in terms of the said circular. The revision of the licence fees was effected with effect from 1.1.2006. Since the petitioners have not paid the arrears demanded from them, the respondents are not renewing their contracts. Being aggrieved from the aforesaid demand, the petitioners are before this Court seeking quashing of the said demand with direction not to raise any further demand on the basis of the circular dated 9.12.2005. The petitioners are also challenging the categorization of the railway stations into various classes which is stated to be based on the revenues generated from advance booking tickets as well as from parcel tickets. However, there is no specific prayer made in the writ petition to quash the categorization of the railway stations into various categories.

(3.) THE railway stations being under the management and control of Indian Railways and the petitioners being its licencees, the respondent is entitled in law to fix such licence fee as is deemed appropriate by them to permit its licencees to provide catering/vending services at the railway stations. If the petitioners want to continue to provide the aforesaid services at railway stations, they are under a legal obligation to pay such licence fee as is fixed by the Indian Railways from time -to - time. It would be competent for the licensor to terminate the licence in case the licence fee fixed by it from time -to -time is not paid by the licencee, recover the arrears of licence fee and also evict the erstwhile licencees from the railway stations where they are providing the catering/vending services. No exception can be taken by the licencees to the quantum of licence fee fixed by the licensor from time -to -time, except in a case where the licence fee is sought to be enhanced, during the fixed period, if any, of a licence and without there being any provision in the Licence Deed or the terms and conditions, subject to which the licence was granted, to enhance such fee.