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Delhi High Court - Orders

Ramen Deka vs Indian Railways Catering And Tourism ... on 13 February, 2024

Author: Prateek Jalan

Bench: Prateek Jalan

                                          $~13, 14 & 29
                                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI

                                          +           O.M.P. (COMM) 245/2023
                                                      RAMEN DEKA                                                                    ..... Petitioner
                                                                                                        versus
                                                      INDIAN RAILWAYS CATERING AND TOURISM
                                                      CORPORATION LTD AND ORS            ..... Respondents

                                          +           O.M.P. (COMM) 384/2023 & I.As. 18254-18256/2023
                                                      INDIAN RAILWAY CATERING AND
                                                      TOURISM CORPORATION LTD.                     ..... Petitioner
                                                                                                        versus
                                                      M/S. RAMEN DEKA                                                             ..... Respondent

                                          +           OMP (ENF.) (COMM.) 35/2024 & EX.APPLs.(OS) 220-
                                                      222/2024
                                                      M/S RAMEN DEKA                       ..... Decree Holder
                                                                                                        versus
                                                      IRCTC AND OTHERS                                                     ..... Judgement Debtors

                                          Appearance:-                       Mr. Sanjeev Prakash Upadhyay & Mr. Rakesh Dubey,
                                                                             Advocates for M/s Ramen Deka in Item Nos. 13, 14 &
                                                                             29.
                                                                             Mr. Sonal Kumar Singh, Mr. Ratik Sharma & Mr.
                                                                             Parth Sindhwani, Advocates for Indian Railway
                                                                             Catering and Tourism Corporation Ltd. in Item Nos.
                                                                             13, 14 & 29
                                          CORAM:
                                          HON'BLE MR. JUSTICE PRATEEK JALAN
                                                            ORDER

% 13.02.2024 I.A. 18254/2023(Exemption) in O.M.P. (COMM) 384/2023 Exemption allowed, subject to all just exceptions.

The application stands disposed of.

O.M.P. (COMM) 245/2023 & Connected Matters Page 1 of 4

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 14/02/2024 at 22:39:12 O.M.P. (COMM) 384/2023

1. The petitioner, Indian Railway Catering and Tourism Corporation Limited ["IRCTC"], in this petition under Section 34 of the Arbitration and Conciliation Act, 1996 ["the Act"], was the respondent/counterclaimant before the arbitral tribunal which was adjudicating disputes between the parties pursuant to a Letter of Award dated 02.01.2017. The Letter of Award was in respect of a license awarded by IRCTC to the respondent - firm, M/s Ramen Deka ["RD"] to set up and operate a food plaza at Old Howrah Railway Station.

2. The counterclaims of IRCTC, included a claim for arrears of license fee. The grievance of IRCTC is that the learned arbitrator has awarded the license fee for a particular period taking the annual license fee at ₹4,75,01,001/- plus Goods and Service Tax for the area of 325.28 sq. mtrs. Mr. Sonal Kumar Singh, learned counsel for IRCTC, submits that this license fee was the bid of RD, only for the originally tendered area of 290 sq. mtrs. An additional 35 sq. mtrs. was subsequently handed over to RD at its request and subject to payment of an additional license fee pro-rata.

3. In support of this submission, Mr. Singh refers to a communication dated 20.06.2017 of RD to IRCTC which expresses RD's willingness to pay additional license fee for the additional area, and to a document dated 30.06.2017 copied to RD, in which it is also stated that license fee for the additional space would be taken as per extant rule on pro-rata basis. Mr. Singh submits that this evidence has been entirely ignored in the arbitral award.

4. The petitioner's challenge is confined to this ground, and to a O.M.P. (COMM) 245/2023 & Connected Matters Page 2 of 4 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 14/02/2024 at 22:39:12 consequent award in RD's favour with regard to security deposit and interest.

5. The matter requires further consideration.

6. Issue notice. Mr. Sanjeev Prakash Upadhyay, learned counsel, accepts notice on behalf of respondent.

7. The parties may additional documents which were part of the arbitral record within two weeks from today.

8. List on 14.05.2024.

I.A. 18255/2023 (stay)

1. Mr. Singh prays for stay of the award. In the impugned award, the claims and counter claims have been adjudicated after setting off the amounts awarded to IRCTC against the amounts awarded to RD, and amount of approximately ₹1.8 crores has to be paid by IRCTC to RD. Upon IRCTC depositing 50% of the awarded amount, alongwith accrued interest thereupon, into this Court within four weeks from today, and the balance amount within four weeks thereafter, execution of the impugned award shall remain stayed until the next date of hearing.

2. With the consent of learned counsel for the parties, it is also directed that RD may withdraw the amount deposited by IRCTC, subject to furnishing a bank guarantee in the equivalent amount to the satisfaction of the learned Registrar General.

3. The application stands disposed of with these directions. I.A. 18256/2023 (Application for condonation of delay in refiling the petition) in O.M.P. (COMM) 384/2023 This is an application for condonation of delay of four days in refiling of the petition. For the reasons stated in the application, the delay O.M.P. (COMM) 245/2023 & Connected Matters Page 3 of 4 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 14/02/2024 at 22:39:13 in refiling is condoned.

The application stands disposed of.

I.A. 12738/2023 (Condonation of delay) in O.M.P. (COMM) 245/2023

1. This is an application for condonation of delay of 20 days in filing of the petition. The impugned award was passed on 20.03.2023 and an application under Section 33 of the Act was disposed of on 09.05.2023.

2. The present petition was filed on 07.07.2023, within the period of three months after 09.05.2023, when the request under Section 33 was disposed of by the arbitral tribunal. In terms of Section 34(3) of the Act, the award has therefore been filed within time and there is no delay in filing of the petition.

3. The application is therefore disposed of.

O.M.P. (COMM) 245/2023 List alongwith O.M.P. (COMM) 384/2023 on 14.05.2024. OMP (ENF.) (COMM.) 35/2024 The enforcement proceedings have been stayed, subject to conditions imposed by the order passed today in O.M.P. (COMM) 384/2023.

List the enforcement proceedings on 14.05.2024.

PRATEEK JALAN, J FEBRUARY 13, 2024 'pv'/ O.M.P. (COMM) 245/2023 & Connected Matters Page 4 of 4 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 14/02/2024 at 22:39:13