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IRCTC Mobile Catering Contracts Termination

The document is a letter from the Ministry of Railways in India directing IRCTC (Indian Railway Catering and Tourism Corporation) to terminate all existing contracts for mobile catering services that involve preparing cooked food from base kitchens, in compliance with an order from the Madras High Court. It also directs IRCTC to not impose any penalties on contractors or withhold security deposits due to the termination, considering the contracts were suspended due to the COVID-19 pandemic. Finally, it discusses allowing mobile catering units to resume operations with a reduced license fee, serving only ready-to-eat meals in line with static catering units.

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SHRUTHI
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0% found this document useful (0 votes)
187 views4 pages

IRCTC Mobile Catering Contracts Termination

The document is a letter from the Ministry of Railways in India directing IRCTC (Indian Railway Catering and Tourism Corporation) to terminate all existing contracts for mobile catering services that involve preparing cooked food from base kitchens, in compliance with an order from the Madras High Court. It also directs IRCTC to not impose any penalties on contractors or withhold security deposits due to the termination, considering the contracts were suspended due to the COVID-19 pandemic. Finally, it discusses allowing mobile catering units to resume operations with a reduced license fee, serving only ready-to-eat meals in line with static catering units.

Uploaded by

SHRUTHI
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

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tRJ
IRGTC
INDIAN RAILWAY GATERING AND TOURISM CORPORATION LTD.
Govt. of lndia En se-Mini Ratna
"C1N.L74899DL1999GO1101707", [Link] : info@[Link], Website: [Link]

20 1 9/t RCTC/CS/STEX/356 March 1,2021

BSE Limited National Stock Exchange of !ndia Limited


(Through BSE Listing Gentre) (Through NEAPS)
1't Flooi, New Trade Wing, Rotunda Building "Exchange Plaza",C-1, Block-G,
Phiroze Jeejeebhoy Towers, Bandra-Kurla Complex,
Dalal Street Fort, Mumbai - 400 001 Bandra (East), Mumbai- 400 051

Code: 542830 Scri bol: IRCTG


Sub: Ministry of Railway,s directive to IRCTC

Ref: Regulation 30 of SEBI (Listing Obligations and Disctosure Requirements)


Regulations, 2015

Sir/Madam,

Pursuant to Regulation 30 of SEBI (LoDR) and other applicable provisions, it is informed that
Ministry of Railways vide their letter dated 23'd Februa ry, 2021 (received on 26th February, 2021)
,

in compliance of orders of Hon'ble High Court of Judicature at Madras dated 19.01.2021 in Wp


1061 of 2021, hasdirectedlRCTCtoterminateall existingcontractsof mobilecatering(currently
kept in abeyance) involving scope of work of providing cooked food to passengers prepared from
base kitchens as per the existing terms and conditions. (Copy of the letter enclosed as
Annexure)

The impact of the above directive is being assessed and will be informed to exchanges in due
course.

This is for your information and record,

Thanking you,

or an Corporation Limited

\^ \,u*
Company Secretary and Compliance
Membership No: F91gg

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iFT{r[-eFr: : 0'r1-23311269-ol dw' 01i.233112sg
Regd. & Corp. Office :11th Floor, Statesman House, 8-148, Barakhamba Road, New Delhi - tf OOOI Tel. 01,1-23311263.64 Fax: 011-23311259
Annexure

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
No. 2019/Catering 600/04 New Delhi, dated 23/02/2021
The CMD. IRCTC.
Statesman House Building.
Barakhmbha Road.
New Delhi - 110001.

Sub:- Compliance of orders of Hon'ble High Court of Madras dated 19.01.2021 in


[Link].1061/2021
Ref- IRCTC's letter No. 2020/IRCTC/CO/Catering/WP 1061-2021 dated 29.01.2021.

The issue raised in the subject Writ petition has been examined in Board's office.
Considering all the merits and facts of the case including personal hearing of members of
petitioner Association (Indian railway Mobile Caterers Association) and as mandated by Hon'ble
High Court of Judicature at Madras in their order dated 19.01.2021 regarding WP 1061 of 2021,
IRCTC is directed to terminate all existing contracts of mobile catering (currently kept in
abeyance) involving scope of work of providing cooked food to passengers prepared from base
kitchens as per the existing terms and conditions. IRCTC is further directed to treat this case as
an exception arising out of pandemic situation and not to treat the case as contractor's default
and hence not impose any fine for not providing catering services and also return the Security
Deposit (SD) and advance license fee in full after considering/adjusting valid dues. if any

This issues with the approval of the Competent Authority. wnd S


Sue22

(Sumeet Singh)
1, Cepy d tee RmeA nelase) DTCG as Director /T&C
laente Railway Board

olc
B7 SPEED PoST
GOVERNMENT OF INDIA
MINISTRY OF RAIL WAYYS
RAILWAY BOARID

No. 2019/Catering/600/04 New Delhi, dated 23/02/2021

The President, IRMCA.


744, Main Mathura Road. Jangpura.
South Delhi.
New Delhi 110014

Sub- Compliance of orders of Hon'ble High Court of Madras dated 19.01.2021 in


[Link].1061/2021.

Ref:- Indian Railway Mobile Caterers Association (IRMCA)'s representation dated 27.01.2021.

The Hon' ble High court of Madras has given mandate to consider the representation of Petitioner
Association dated 04.01.21 and pass the final orders on merit and in accordance with law. The
Petitioner Association in their
representation dated 04.01.21 has inter alia requested Railway
Board/IRCTC to allow them to operate the mobile catering units under regular contracts in the
same manner in which the static units
have been operationalized at reduced license fee. Further
to this, IRMCA however mentioned vide
letters dated 27.1.2021 and 8.2.2021 that
to run the trains under new of
they are ready
scope work. i.c. onlyReady to Eat (RTEs).
Pursuant to this, the
Ministry of Railways examined he
Mobile Caterers Association (IRMCA) dated representation
submitled by lndian
Railways 04.01.21. along with other relevant
documents including tender documents.
members of IRMCA was also held in
policy instructions etc . In addition. a meeting with the
Ministry of Railways on 11.02.2021 to hear their plea
regarding the issue including their grievances. In the meeting there was
they should be permitted to resume work (same scope of work) on the unanimous request that
reduced icense fee (as in the case trains held by them with
of' static units). or they may be allowed to
under new scope of work. i.e service of operate the trains
static units.
only RTEs with reduced license fee as in the case of

Indian Railways have


gradually started operating the passenger segment
lockdown special trains the
preventive measure to contain the spread of post
onaccount of CoVID 19 as a
Virus. The phased introduction of Corona
ordination with state passenger segment trains is being
governments to enable them planned in close co-
efliciently managingCOVID 19 pandemic.
lt can be scen that the
basic demand and
matter under WP) is grievanceof Petitioners
(vide letter dated 4.1.2021:
regarding resumption
manner in which the static
of the mobile units
under regular contracts in the
units have bcen same
Board issued clear operationalized at reduced license fee. On 5.8.2020.
instructions that only Ready
also involved in the to Eat meals would
be served and IRCTC
consultation process for was
respect to catering [Link]
evident that with of only Ready to Eat. Hence, it is
pandemic norimal. Even if rains were to resume it was envisaged to make RTEs the new p0st
instead of special trains. the running as "regular' with regular train numbers,
cooked food services are not
oniention that the scope of work envisaged to resume. Further, IRCTC's
under mobile
spceial trains is apgrecable. It is a matter of catering contracts was changed completely in
operatcd by MembcTS of fact that the
IRMCA for regular trains scope of work of mobile
eatering services 0n the irain from the entailed "To operate. catering as
nominated manage and supply
sible on
non railway arca approved by theBase Kitchens on Railway premises as lar as
a2ilability of sp:ice oa Railway Railway Administration in case of non-
premises from the commencement date of
operation and

73212)
setup operate railway
stations on Railway approved/nominated base kitchens
accordingly at
originating /enroute
premises".
Therefore, the most basic
aspect of the scope of work was to
nominated base kitchens and
also to
provide cooked foods prepareo n
changed scenario in view of COVID 19, IR has setup/operate the base kitchens. However
with the
services with only
Ready to Eat
gradually allowed only limited special train
meals is completely different (RTE)
food items. Hence, this
with the earlier case wherein cooked scope of providing Ready to Fat
kitchen were served to food prepared from base
passengers.
is significantly different so
The scope of work for
catering services in the Special Trains.
as to
provide hygienic food and also contain the
spread of Covid 19
pandemic situation. Further terms and conditions of static
licenses, where physical unit cannot be compared with mobile
distancing can be maintained unlike trains where all
etc. have to be carried out in
limited physical space. Moreover, IRCTC has catering operations.
to the licensee
having regular licenses to participate in the Tender given an opportunity
such opportunity was availed process for Special Trains and
by the members of IRMCA and as per records
of them have been awarded
licenses of special trains through approximately 50%
competitive bidding.
Itmay be further seen that while the matter in the Hon'ble
catering services with respect to resumption of normal trains High Court of Madras pertained to
(normal catering service). the
association in their letter dated 8.2.2021 has written that
RTEs under provision of the they are ready to
operate trains with
existing terms which provides amendment with mutual consent. It
would not be prudent to offer the same
contractors the work of
foods as there is vast mobile catering of providing RTE
change in scope of contract and hence being a government entity the
IRCTC is bound to follow the basic
principles of tendering which prohibits the significant
change in scope of tender. In this regard. since service of only RTEs constituteda different scope
of work. IRCTC rightly awarded new short term
contracts through a tendering process.
Having
accepted that the scope of work is different. it is neither feasible nor prudent to allow contractors
with a different scope of work to work these trains.

In view of above. following orders are issued:

In view of the present situation and


considering the changed scope of work of mobile catering.
the licenses awarded to the members of the Indian
railway Mobile Caterers Association cannot
be restored especially when IRCTC gave ample
opportunity to them to participate in the Tender
for special Trains.

Hence, considering and keeping in mind all the merits and facts
of the case including personal
hearing of members of petitioner Association and as mandated by Hon'ble High Court of
Judicature at Madras in their order dated 19.01.2021 in WIP 1061 of 2021. the Ministry of
Railways hereby orders IRCTC to terminate all existing contracts of mobile catering (currently
in abeyance) involving scope of work of providing cooked food to
passengers prepared from
base kitchens as per the existing terms and conditions. It is also directed to IRCTC to treat this
case as an exception arising out of pandemic situation and not to treat the case as contractor's
default and hence not impose any fine for not providing catering services and also return the
Security Deposit (SD) and advance license fee in full after considering/adjusting valid dues. if
any.

uud)
This has approval of the Competent Authority
23/22

(Sumeet Singh)
DTCG as Director T&&C
2 SPEeP PosT Railway Board

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