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D Stations with passenger earnings between Rs.1 Crore to Rs.3 Crores.
E All stations other than Class A, B, C & D. F All Flag/half stations Thus, it was necessary to categorize stations into various categories for deciding level of providing passenger amenities, catering facilities etc. The classification was based on the basis of tickets issued, which is the most reliable criteria and the data can easily be verified. Thus, according to learned counsel for the respondents the licence fee fixed by the IRCTC and Ministry of Railways was on the basis of sound rational factors in furtherance of its catering policy. It is further submitted that some of the petitioners have entered into agreement with the Railway Administration before the Catering Policy of 2000 came into existence where the licensee had agreed to pay licence fee as revised by the Railway Administration in future. The above fact remains according to respondent as undisputed. It is also submitted that the petitioners being licensees have no right for hearing in formation of policy as agreed on by the Indian Railways and IRCTC. It is further submitted that the petitioners are permitted to compete with the other bidders and thus, no right of the petitioners is violated.

Even on challenge to policy decision, a bare perusal of certain instructions issued by the Railway Board, Ministry of Railways, Government of India as per circular dated 13.9.1999 to all General Managers contain comprehensive instructions for provisions of passenger amenities at stations. The above circular refers to providing amenities by categorizing into `infrastructure facilities' and `passenger amenities' and the stations are categorized into five categories. The subsequent Catering Policy-2000 also refers to need for a new policy in view of increased passenger traffic of Railways and customer wants higher standards of catering services including quality, variety in products, hygiene, better presentation of services etc. The Railways provided certain catering and vending services at Class A, B, C, D and E stations. It also mentioned about shifting of stalls, reduction in the number of stalls on platform and management of departmental units. It also refers to providing pantry car on long distance mail/express trains and other aspects about conditions of licence and clause 12.3 refers to Arbitration, which states that, in the event of any question, dispute or difference arising under these conditions of contract or in connection with the contract, the same shall be referred to the Arbitration Tribunal or the person appointed to be the sole arbitrator by the GM of the concerned zonal office and the award of the Arbitrator shall be final and binding on the parties to the contract. Clause 13 provides for Licensing Policy with regard to allotment of catering/vending licences and clause 14 refers to system for awarding licence in case of major units.