HC upholds Railways decision

The Delhi High Court turned down the plea of Ambuja Hotels and Real Estates to restore its catering licence for Shatabadi Express.

The Delhi High Court turned down the plea of Ambuja Hotels and Real Estates to restore its catering licence for Shatabadi Express.

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Railways had terminated the contract after passengers complained of poor quality of food.
A Bench headed by Chief Justice Dipak Misra dismissed the plea and directed the firm to hand over the services to Indian Railway Catering & Tourism Corporation (IRCTC) by September 9.

The IRCTC had cancelled the licence in May after complaints of poor quality of the food supplied in the trains. Following the cancellation, the firm moved High Court and contended that the contract was terminated service was not because of complaints, but because of government’s decision to take over the catering services.