BHARAT CATERING CORPORATION Vs. UNION OF INDIA
LAWS(ALL)-2016-9-307
HIGH COURT OF ALLAHABAD
Decided on September 30,2016

BHARAT CATERING CORPORATION Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

- (1.) This petition has been filed challenging the orders dated 17.05.2005 and 09.05.2005, by means of which, demand of balance licence fee for two years w.e.f. 02.04.2004 has been made from the petitioners. The petitioner no.1 is a partnership firm carrying on the business of sales of foodstuff and other related items in two vending stalls situated at Platform no.1 and Platform nos.2 and 3 of Lucknow Railway Station, Lucknow, and the petitioner no.2 happens to be one of the partners of the aforesaid firm.
(2.) The Northern Railways published an advertisement for award of two vending stalls at Platform no.1 and Platform nos.2 and 3 of Lucknow Railway Station, Lucknow in various newspapers and in pursuance of the aforesaid advertisement, a number of persons and firms, including the petitioners, had applied for award of contract of the said vending stalls. The petitioners submitted an application dated 20.03.2003 in pursuance of the said advertisement, which was accepted by the respondents for awarding the aforesaid two vending stalls. Respondent no.3, on 23.12.2003, sent letters to the petitioners alongwith the terms and conditions of the award of licence for the said two vending stalls, asking for the acceptance of the petitioners in writing within fifteen days from the date of receipt of the said letter, and in case the terms and conditions are acceptable to the petitioners, the petitioners were asked to deposit the security amount for the aforesaid two vending stalls as mentioned in the letter dated 23.12.2003 and in pursuance thereof, an agreement was entered into between the parties on 25.11.2004 in respect of the aforesaid two vending stalls. After entering into the said agreement, the petitioners started functioning at the aforesaid vending stalls. Clause 3-A of the agreement provided that the licence fee would be 12% of the actual annual sales turnover and a sum of Rs.9,85,500/- was demanded from the petitioners towards licence fee on the basis of potential annual sales turnover as mentioned in the letter dated 09.05.2005.
(3.) The actual licence fee was to be calculated on the basis of actual annual sales turnover of the vending stalls in question by the Railway Administration, but as stated by the petitioners, the respondents have failed to calculate the actual licence fee on the basis of actual annual sales turnover of the vending stalls in question, so the petitioners were in dilemma and they decided not to deposit the licence fee unless there was proper fixation as provided under the agreement. The agreement in question contains a specific clause i.e. Clause no.39, which provides that in case there is any dispute or difference of opinion in any of the subjects in respect of the agreement in question, the same would be resolved by appointing an Arbitrator, by the General Manager or by the officer concerned and on appointment being made of the Arbitrator, his appointment could not be objected on the ground that the party was supposed to deal with the agreement and the decision given by the Arbitrator shall be final.;


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