Case Details

  • Case name: Southern Railway v. Brandavan Food Products (Civil Appeal Nos.8245-8249/2026 @ SLP (C) Nos.6191-6195/2026)
  • Court: Supreme Court of India, Civil Appellate Jurisdiction
  • Order date: 27 May 2026
  • Related prior orders: High Court judgment dated 18‑11‑2025 in OSA (CAD) No.108/2025 and CMP Nos.26139/2025, 25753/2025, 25756/2025, 25759/2025
  • Contract: Yatri Seva Anubandh (YSA) contract for onboard services on six Vande Bharat trains; termination notice dated 30‑05‑2025 and termination order dated 14‑10‑2025

Parties Involved

  • Appellant: Southern Railway (government railway)
  • Respondent: Brandavan Food Products (caterer)
  • Counsel for appellant: ASG Brijender Chahar, AOR Balendu Shekhar, Adv. Shashank Bajpai, Adv. Gaurav Arya, Adv. Adarsh Kumar Pandey, Adv. Amrish Kumar
  • Counsel for respondent: Senior Counsel Navin Pahwa, Jasmeet Singh, Adv. Akhilesh Kumar, Adv. Saif Ali, Adv. Pushpendra Singh Bhadoriya, Adv. Ajith Williyam, Adv. Vijay Sharma, Adv. Pranav Menon, Adv. Saurav, Adv. Mehul Pant
  • Mediator: Mr. R. Basant (Senior Counsel)
  • Judges: Justice Aravind Kumar, Justice Prasanna B. Varale

Issues / Allegations / Violations

  • Respondent alleged that KPI scores were arbitrarily evaluated, penalties were excessive, quarterly KPI ratings were communicated with delay, and that there was mala fides and breach of natural justice before termination.
  • Appellant cited repeated food‑quality complaints, hygiene and safety concerns, successive low benchmark scores, and public‑interest considerations (passenger safety and railway reputation) to justify termination.

Findings & Observations

  • The Single Judge of the High Court vacated the interim protection granted to the respondent and held that termination of the YSA contract was contractually permissible.
  • The court emphasized that any contractual losses could be compensated and that the balance of convenience and public interest favored the railways.
  • Mediation facilitated by Mr. R. Basant resulted in a settlement where the railways agreed to pay Rs 88,48,628 to the respondent and both parties agreed to withdraw all pending claims.

Penalties / Settlements / Directions

  • Southern Railway shall transfer Rs 88,48,628 to Brandavan Food Products within eight days of receiving intimation of the arbitration withdrawal.
  • All disputes arising from the Letter of Agreement dated 15‑04‑2024 and the termination orders dated 30‑05‑2025 and 14‑10‑2025 are deemed settled.
  • No further claims shall be made by either party against the other.

Corrective Actions & Future Obligations

  • Arbitration proceedings AC No.05/2025 and AC No.02/2026 are to be withdrawn; the respondent (claimant) will file withdrawal memos for both.
  • The respondent will also withdraw arbitration AC No.01/2025, for which no award has been passed, and the tribunal is expected to accept the withdrawal.
  • Each party shall bear its own costs of the proceedings.
  • The interim injunction restraining the railways from permanently entrusting YSA work to any third party is set aside.

Final Ruling & Enforcement

  • The civil appeals are disposed of in accordance with the settlement terms.
  • All pending applications, if any, are also disposed of.
  • The parties are directed to comply with the payment and withdrawal instructions promptly.
  • The Court records appreciation for the mediator’s services.