Authority: High Court at Calcutta, Commercial Division

Order Date: 15 July 2026

Case Overview

  • Parties: Araha Hospitality Pvt Ltd (petitioner) vs. Group General Manager of Indian Railway Catering and Tourism Corporation Ltd and others (respondent).
  • Nature of Proceeding: Application under Section 11(6) of the Arbitration and Conciliation Act, 1996 for appointment of a sole arbitrator to resolve disputes arising from the Catering Licence Agreement dated 21 May 2014.
  • Background: The petitioner was awarded a catering licence for Train Nos. 12871/12872 (Howrah–Titlagarh–Howrah Ispat Express) through a tender floated by IRCTC. The licence was initially for five years, renewed for another five years, and subsequently extended by the respondent for an additional two years effective 7 June 2024 to 19 February 2026.
  • Operational Disruption: During the licence period, the train was cancelled for a total of 589 days, encompassing 1,179 trips, preventing the petitioner from providing on‑board catering services. Despite the cancellations, the petitioner continued to pay the licence fee for the entire contractual period, incurring substantial financial loss.
  • Claims: The petitioner originally sought an extension of the licence period or other contractual reliefs but now confines its claim solely to compensation and damages for the inability to operate during the 589 cancelled days. It is no longer seeking any extension of the contractual tenure.
  • Prior Litigation: The petitioner had earlier instituted proceedings under Section 9 of the Arbitration Act before the City Civil Court at Calcutta (Misc. Case No. 1556 of 2026), obtaining an interim order restraining the respondent from proceeding with a fresh tender process opened on 15 April 2024. The present application isolates the claim to monetary compensation.
  • Respondent’s Position: The respondent acknowledges the existence of the Catering Licence Agreement and the arbitration clause therein, and consents to the appointment of a sole arbitrator, raising no objection.

Final Outcome

  • The Court appoints Mr. Ritzu Ghosal, Senior Advocate (Mobile No. 9830211206), as the learned sole arbitrator to adjudicate the disputes between the parties.
  • The appointment is subject to compliance with Section 12(5) of the Arbitration and Conciliation Act, 1996.
  • The sole arbitrator is authorized to fix his remuneration in accordance with the Fourth Schedule of the Act.
  • All questions relating to arbitrability, admissibility of claims, limitation, jurisdiction, and other issues are left open for determination by the sole arbitrator.
  • The petition stands disposed of with the above directions.

Topics: Arbitration, Railway Catering Dispute