UTTAM KUMAR BALMUCHU Vs. THE UNION OF INDIA

JUDGEMENT

(1.) Seeking quashing of letter dated 23.05.2013 whereby the licence fee for the general minor unit allotted to the petitioner at Chakardharpur Railway Station has been determined at Rs. 1,67,580/- per annum and for quashing letter dated 19.11.2013 whereby the contract of the petitioner has been terminated and a direction has been issued for handing over the vacant space of the catering unit, the petitioner has approached this Court by filing the present writ petition. Further prayer for quashing the formula for fixing the licence fee for the catering unit under the Catering Policy, 2010 issued vide Commercial Circular No. 35/2010 dated 21.07.2010 had also been made in the writ petition.

(2.) The brief facts of the case are that, the petitioner is a licensee for a cold drink stall at platform No. 2 & 3, at Chakardharpur Railway Station. The licence fee for the unit was fixed at Rs. 15,000/- per annum. This allotment was made for a period of 5 years and after the expiry of the said period it was renewed for another 5 years. The petitioner paid an amount of Rs. 13,547/- on 31.05.2011 for a period of 6 months and further an amount of Rs. 10,285/- on 20.09.2011 for the period till January, 2012. The licence fee was regularly paid by the petitioner upon demand letters issued by the Railway Authority. In the meantime, the Ministry of Railway formulated a new catering policy being Catering Policy, 2010 which came into effect from 09.08.2010. Between the period 02.02.2011 and 04.02.2011 sale assessment of the cold drink stall of the petitioner at Chakardharpur Railway Station which is "B Category Railway Station" was conducted and it was found that the average sale per year was Rs. 2,00,993/- and accordingly, the licence fee @ 12% on yearly sales was fixed at Rs. 24,120/-. However, by the subsequent communication dated 23.05.2013 the licence fee has been determined at Rs. 1,67,580/- and it has been made effective from a retrospective date i.e., w.e.f. 22.01.2012. Vide letter dated 19.11.2013 the contract was terminated and therefore, the petitioner has approached this Court by filing the writ petition.

(3.) The respondent-Railways has filed a counter-affidavit taking a stand that under Section 2 of the Railway Board Act, 1905 the Railway Board has been conferred with all powers to frame policy guidelines and rules for the management of the Indian Railways. The Catering Policy, 2010 dated 21.07.2010 was formulated under which parameters for fixing the licence fee has been mentioned and a formula was thus revolved for fixing the licence fee. Different parameters for fixing the fee are enumerated in clause 18.1 of Commercial Circular No. 35/2010. It is stated that licence fee for the stall allotted to the petitioner was fixed on the basis of SAG Committee formula and the petitioner is liable to pay the revised licence fee. The petitioner cannot take a plea that the licence fee which was fixed 10 years back must be continued and it should not be enhanced. Policy guidelines of the Railway Board circulated through Commercial Circular No. 35/2010 has got mandatory force and it has superseded all other previous circulars. The SAG Committee comprised of CCM (Catg. & PS), FA & CAO and CPDE of South Eastern Railway. The points calculated for various stalls at Chakardharpur Station has been given in a chart which is reproduced below: