In a petition filed before the Delhi High Court Under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection against the Indian Railway Catering and Tourism Corporation Ltd.’s (IRCTC) (respondent) demand notice dated 03-12-2025, a Single Judge Bench of Justice Om Prakash Shukla appointed a Sole Arbitrator to adjudicate upon the disputes of the parties.
The present dispute arose out of a license agreement dated 18-09-2023 between M/S Brandavan Food Products (petitioner) and IRCTC regarding provision of on-board catering services in Vande Bharat Express. The petitioner contended that IRCTC had raised an illegal and contractually impermissible demand of Rs. 4,50,06,151/- by wrongly increasing concession fee after the train was augmented from 16 to 20 coaches.
It was submitted that the contract only permitted variation of concession fee in a specific situation such as increase or decrease in the train’s frequency, but there was no clause which allowed IRCTC to increase the concession fee merely because the number of coaches increased. Hence, the petitioner sought interim protection to restrain Indian Railway Catering from acting upon the impugned demand notice.
The Court noted that the approximate valuation of the suit was Rs. 4,50,06,151/- and appointed an advocate to enter into reference for adjudication of the disputes. The arbitration was held to be carried under the rules and aegis of the Delhi International Arbitration Centre (DIAC). The Court directed the Sole Arbitrator to proceed to arbitration proceedings subject to furnishing requisite disclosures under Section 12(2) of the Act and directed the parties to approach the Arbitrator within two weeks, while disposing of the petition.
