As per case facts, R. K. Associates was awarded a catering license by IRCTC, which was later terminated due to persistent passenger complaints and unsatisfactory services. After an initial Section ...
ARB. A. (COMM.) 11/2026 Page 1 of 18
$~
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on:16
th
January, 2026
Pronounced on:19
th
January, 2026
+ ARB. A. (COMM.) 11/2026, I.A. 1249/2026, I.A. 1250/2026 & I.A.
1251/2026
M/S R. K. ASSOCIATES AND HOTELIERS PVT. LTD.
.....Appellant
Through: Mr. Sandeep Sethi and Mr. Sudhir
Makkar, Sr. Advs. with Mr. Jasmeet
Singh, Mr. Mahinder Singh Hura, Mr.
Saif Ali, Mr. Pushpendra S.
Bhadoriya, Mr. Vijay Sharma, Mr.
Krisna Gambhir, Ms. Shreya Sethi,
Ms. Riya Kumar, Mr. Akhilesh
Kumar, Ms. Aadhya Shrotriya, Ms.
Sanya C. Oberoi, Mr. Pranav Menon,
Mr. Saurav and Mr. Ajith Willyams,
Advocates
Mob: 9910159955
Email: aor.jasmeetsingh@gmail.com
versus
INDIAN RAILWAY CATERING AND T OURISM
CORPORATION LIMITED (IRCTC) .....Respondent
Through: Mr. Saurav Agrawal and Mr. Rajat
Malhotra, Advocates with Mr.
Saksham Gupta, Ms. Madhu K.
Singh, Ms. Kiran Devrani, Mr.
Anshuman Chowdhary, Ms. Nikita
Rathi and Mr. Parmeet Singh,
Advocates
Mob: 9953769317
ARB. A. (COMM.) 11/2026 Page 2 of 18
CORAM:
HON'BLE MS. JUSTICE MINI PUSHKARNA
JUDGMENT
1. The present appeal has been filed under Section 37 (2)(b) of the
Arbitration and Conciliation Act, 1996 (“Arbitration Act”) against the
interim order dated 12
th
January, 2026 (“impugned order”) passed by the
learned Sole Arbitrator in Delhi International Arbitration Centre (“DIAC”)
Case Ref No. DIAC/12174/12-25. By way of the impugned order, the
learned Arbitrator has dismissed the application of the appellant filed under
Section 17 of the Arbitration Act.
2. The facts, as canvassed before this Court, are as follows:
2.1 Tender bearing no. 2024/IRCTC/P&T/CLUSTER/FEB/ECoR/
CLT/A-1 came to be floated by the respondent, i.e., Indian Railway Catering
& Tourism Corporation Limited (“IRCTC”), which also contained the
provisions relating to Master License Agreement. The services contemplated
under the said tender consisted of two parts, which are as follows:
Part A- Dealing with the construction and operation of base kitchens at
locations specified by the respondent.
Part B- Dealing with the provision of onboard catering services in cluster
trains bearing cluster no. ECoR/CLT/A-1 run by the respondent, for a period
of five years, further extendable upto two years.
2.2 The cluster included Train no. 12801-02, PURI-NDLS Purushottam
Express (“subject train”), running up and down between New Delhi and Puri
in Orissa.
ARB. A. (COMM.) 11/2026 Page 3 of 18
2.3 The appellant came to be declared as the successful bidder for the
aforesaid cluster, and by way of Letter of Award dated 01
st
May, 2024, the
appellant was awarded the license for the commissioning and operation of
base kitchens along with provision of on-board catering services in all trains
of the said cluster for a period of five years, further extendable to two years.
2.4 Subsequently, on 22
nd
July, 2024, an agreement came to be entered
into by the parties for the provision of services as mentioned under Part A of
the tender.
2.5 Thereafter, on 31
st
August, 2024, a Letter of Commencement came to
be issued by the respondent in favour of the appellant, vide which the
appellant was inter alia intimated to operate the base kitchens at the four
places as notified in the tender and to commence the provision of on-board
catering services in the subject train, with effect from 12
th
September, 2024
till 11
th
September, 2029.
2.6 Subsequent to the Letter of Commencement, from 12
th
September,
2024, the agreement qua the services mentioned under Part B of the tender,
came into force and the same was to remain valid till 11
th
September, 2029.
2.7 Thereafter, disputes arose between the parties. The appellant raised
grievances, complaints and wrote several letters regarding presence of
unauthorized food venders on the train, due to which the appellant was
unable to enjoy the full benefits of the agreement. The respondent on the
other hand, issued two Show Cause Notices dated 03
rd
April 2025 and 08
th
April, 2025 to the appellant highlighting the complaints about service
deficiencies against the appellant on the subject train. The appellant filed
replies dated 14
th
April, 2025 and 18
th
April, 2025 to the said Show Cause
ARB. A. (COMM.) 11/2026 Page 4 of 18
Notices and also requested for personal hearing.
2.8 Accordingly, a personal hearing was granted to the appellant on 30
th
April, 2025. Subsequently, the respondent issued a Termination Order dated
02
nd
May, 2025, thereby, terminating the license for the subject train, on
account of unsatisfactory response and continued breaches.
2.9 Since the agreement between the parties contained an arbitration
clause for resolving the disputes and the respondent had floated a fresh
limited E-tender dated 05
th
May, 2025, the appellant herein filed a petition,
i.e., OMP.(I)(COMM) 162/2025 under Section 9 of the Arbitration Act,
seeking interim relief against the Termination Order.
2.10 While issuing notice vide order dated 05
th
May, 2025, in the said
petition, this Court after recording that the appellant was continuing to
provide catering services in the subject train, directed the parties to maintain
status quo, till the next date of hearing. The said interim protection
continued to operate till passing of the judgment in the said case.
2.11 Vide judgment dated 12
th
December, 2025, the said petition under
Section 9 of the Arbitration Act filed by the appellant was dismissed, and
the interim protection earlier granted vide order dated 05
th
May, 2025, was
vacated. However, seven days‟ time was granted to the appellant to
handover the train and cease operations along with catering services on the
subject train.
2.12 By order of even date, i.e., 12
th
December, 2025, in ARB.P.
1444/2025 filed by the appellant under Section 11 (6) of the Arbitration Act,
this Court referred the disputes between the parties to a Sole Arbitrator.
2.13 Pursuant to the dismissal of the petition under Section 9 of the
ARB. A. (COMM.) 11/2026 Page 5 of 18
Arbitration Act and completion of the seven day period granted by this
Court, the respondent issued a Termination Notice dated 19
th
December,
2025 to the appellant to cease the on-board catering services operations in
the subject train.
2.14 The appellant challenged the judgment dated 12
th
December, 2025
passed in OMP.(I)(COMM) 162/2025, by way of an appeal, i.e.,
FAO(OS)(COMM) 212/2025, under Section 37 (1)(b) of the Arbitration Act.
By order dated 22
nd
December, 2025, the said appeal was disposed of, by
directing the appellant to approach the Sole Arbitrator by filing an
appropriate application.
2.15 Thereafter, the appellant approached the learned Sole Arbitrator on
the same day, i.e., 22
nd
December, 2025, under Section 17 of the Arbitration
Act, wherein, order came to be passed in the following manner:
“xxx xxx xxx
7. In these circumstances and taking into account that an interim
order passed by the Hon'ble High Court was ensuing in favour of
the Claimant since 05.05.2025, it is deemed appropriate to grant
similar interim protection to the Claimant for a short period till the
present application can be decided. It is, therefore, directed that as
was the position when the Claimant's petition under Section 9 was
pending before the Hon'ble High Court, the Claimant will continue
to discharge its obligations under the MLA till the next date. It is,
however, made clear that this interim protection is being granted
only due to paucity of time and will not be taken as an expression of
opinion on the merits of the Claimant's plea for interim protection.
xxx xxx xxx”
(Emphasis Supplied)
2.16 After hearing the parties and considering their submissions, the
learned Sole Arbitrator vide the impugned order dated 12
th
January, 2026,
dismissed the application of the appellant, holding that the restoration of a
ARB. A. (COMM.) 11/2026 Page 6 of 18
terminated contract at the interim stage, was neither warranted nor in public
interest.
2.17 Thus, the present appeal has come to be filed by the appellant.
3. On behalf of the appellant, the following submissions have been
advanced:
3.1 The respondent has terminated the contract in a most high-handed
manner, without adherence to the terms and conditions of the contract/tender
and the principles governing the procedure for termination of contract.
3.2 The decision-making process adopted by the respondent leading to the
issuance of the Termination Order, was arbitrary, unfair and in violation of
the Principles of Natural Justice. Further, the learned Arbitrator erred in not
appreciating the fact that the Termination Order is an unreasoned/non-
speaking order, which does not reveal cogent reasons nor refers to the
contentions made by the appellant.
3.3 Clause 6.10 as relied upon by the respondent has to be read in
conjunction with Clauses 6.10 (a) and 6.10 (b) of the contract agreement,
which refers to Annexure K. The said Annexure K provides for imposition of
penalty for established passenger complaints and prescribes a procedure
leading to termination, as per which, penalties are to be imposed based on
the recurrence of a particular type of complaint. As per Annexure K, it is
only after the fifth established case for „Type II‟ and „Type III‟ complaint
and after the second established case for a „Type IV‟ complaint, that the
contract of the appellant was liable to be terminated. Further, Annexure K of
the contract agreement also envisaged imposition of penalties of the
amounts as mentioned therein, before which action for termination could be
ARB. A. (COMM.) 11/2026 Page 7 of 18
taken. However, penalty of the amount mentioned in Annexure K, as per the
Termination Order has cumulatively been imposed upon the appellant,
without disclosing whether the same were on account of Type I/Type
II/Type III/Type IV complaint.
3.4 The respondent has acted in complete disregard of the contractual
framework governing termination, rendering the Termination Order
arbitrary and contrary to the express terms of the contract.
3.5 The Termination Notice travels far beyond the scope and
consequences set out in the Show Cause Notices. The learned Arbitrator
erred in not appreciating the fact that the respondent has failed to state the
grounds for the proposed action against the appellant in the Show Cause
Notices. The grounds of termination as given in the Termination Notice are
different from the grounds given in the Show Cause Notices.
3.6 The learned Arbitrator, while passing the impugned order, erred in not
appreciating the fact that the appellant did not have a reasonable opportunity
to defend itself. In this regard, it can be seen that the grounds on which the
Termination Order has been issued were never mentioned to the appellant in
the Show Cause Notices issued to it, thus, rendering the Show Cause
Notices issued by the respondent as invalid. Thus, the Termination Order
travels beyond the scope and allegations contained in the Show Cause
Notices and, therefore, cannot be sustained and should have been stayed by
the learned Arbitrator.
3.7 No notice for curing the defect has been issued to the appellant, which
was required to be given as per the contractual terms. The respondent has,
thus, violated Clause 8.2 of the subject tender/agreement, as the mandatory
ARB. A. (COMM.) 11/2026 Page 8 of 18
period of fifteen days for remedying the breach before terminating the
contract and forfeiting the security deposit, was not granted. The
Termination Order clearly states that the termination and forfeiture is being
done as per Clause 7.1 of the contract, therefore, it was mandatory for the
respondent to observe compliance of Clause 8.2.
3.8 The learned Arbitrator failed to appreciate that the Termination Order
was issued under Clause 7.1 of the agreement, which required the
respondent to comply with the procedure under Clause 8.2 of the agreement,
which was a condition precedent to termination under Clause 7.1 of the
agreement. No such notice under the said clause was ever issued to the
appellant by the respondent. Hence, the subject contract is not determinable
in view of the law laid down in the case of Ascot Hotels and Resorts Pvt.
Ltd. & Anr. Versus Connaught Plaza Restaurants Pvt. Ltd., 2018 SCC
OnLine Del 7940; DLF Home Developers Limited Versus Shipra Estate
Limited and Others, 2021 SCC OnLine Del 4902; Jumbo World Holdings
Limited and Another Versus Embassy Property Developments Private
Limited and Others, 2020 SCC OnLine Mad 61.
3.9 The balance of convenience is in favour of the appellant as the
termination would cause irreparable financial loss to the appellant.
Termination and consequential debarment would severely impede future
business prospects of the appellant as it enjoys substantial goodwill. The
livelihood of 115 individuals deployed on the train and at the base kitchens.
Further, the complaints received are miniscule compared to the number of
passengers, the appellant caters to during the on-board catering service.
4. On behalf of the respondent, the following submissions have been
ARB. A. (COMM.) 11/2026 Page 9 of 18
made:
4.1 The contract has been validly terminated in terms of Clause 6.10 of
the Master License Agreement in view of the unsatisfactory service and
persistent passenger complaint against the appellant. The termination of the
license was based on persistent complaints and unsatisfactory service, issues
which are contractually reserved to the sole discretion of the respondent,
which is final and binding.
4.2 The Master License Agreement entered into between the parties is a
determinable contract, as is evident from Clause 6.10, which expressly
provides that the respondent reserves the right to terminate the license
without notice in the event of persistent complaints, unsatisfactory services,
or non-compliance with the terms of the Agreement. The Specific Relief
Act, 1963 prohibits the performance of such determinable contracts.
4.3 The reliefs sought by the appellant for reinstatement of its license and
injunction against the Termination Order, are in effect prayers for status quo
ante. Such reliefs would have the direct consequence of restoring the
appellant to contractual performance and is therefore prohibited by statute.
4.4 Clause 6.10 functions as an independent and standalone provision,
specifically addressing instances of persistent complaints. Clauses 6.10 and
6.10 (a) are disjunctive in nature, operating as alternative grounds for action.
In the present case, the respondent has invoked Clause 6.10, which
empowers it to terminate the Agreement forthwith and without prior notice.
4.5 Even assuming that Clause 6.10 (a) were to apply, the stipulated
criteria under that provision, as outlined in Annexure K, have been fully
satisfied. This is substantiated by multiple „Type-III‟ complaints, including,
ARB. A. (COMM.) 11/2026 Page 10 of 18
those pertaining to over-charging and the presence of insects or cockroaches
in food. Further, Annexure K enables the respondent to impose penalty upon
default, and in the present case there have been 100 instances of levied
penalty upon the appellant, which was placed before the learned Arbitrator.
4.6 The fundamental requirement for a valid notice was satisfied by the
respondent. The Show Cause Notices dated 03
rd
April, 2025 and 08
th
April,
2025, issued by the respondent are complete in all respects and were further
supplemented by Letters dated 24
th
December, 2024, 27
th
January, 2025, 21
st
February, 2025, 24
th
March, 2025 and 09
th
April, 2025, whereby, the
appellant was communicated of its continued breach of contract.
4.7 The appellant cannot seek enforcement of the contract by way of
injunction, and once it is settled that a contract is determinable in nature and
is terminated, remedies are confined to damages.
4.8 The pre-requisites for granting interim relief have not been satisfied
by the appellant. There is no prima facie case in favour of the appellant, as
the Master License Agreement is determinable in nature. Further, balance of
convenience is against the appellant as interim protection to the appellant
could expose passengers to continued sub-standard services and the
appellant in its own letters has stated the grievance only to the effect that
they have suffered or will suffer monetary loss, therefore, the appellant can
be compensated through damages. Moreover, irreparable harm will be
caused to the respondent, which is evidenced by the 700 fresh complaints
against the appellant that have been received since the filing of the Section 9
petition, which causes irreversible prejudice to the public welfare and the
respondent‟s obligations, especially, when the appellant‟s claims are
ARB. A. (COMM.) 11/2026 Page 11 of 18
compensable by damages.
5. I have heard learned counsel for the parties and have perused the
records.
6. At the outset, this Court notes the settled position of law that in case
the view taken by the Arbitral Tribunal is plausible and free from perversity,
interference under Section 37 (2)(b) of the Arbitration Act, is not warranted.
The scheme of the Arbitration Act emphasizes minimal judicial intervention
and Courts do not substitute their opinions for that of the Arbitral Tribunal,
limiting the interference of the Court only in cases where the impugned
order is perverse, patently illegal or suffers from jurisdictional infirmity.
Thus, this Court in the case of Databit Technologies Pvt. Ltd. and Ors.
Versus Red Fort Finance Company Pvt. Ltd., MANU/DE/0179/2026, held
as follows:
“xxx xxx xxx
7. It is well settled that the scope of interference under Section 37 is
limited. The appellate court does not act as a court of first instance and
cannot re-appreciate evidence or substitute its own discretion over that
of the arbitral tribunal. Interference is warranted only where the
impugned order is perverse, patently illegal, or suffers from a
jurisdictional infirmity. Mere disagreement with the view taken by the
tribunal or the possibility of an alternative view is not a ground for
interference. The power exercised by the arbitral tribunal under
Section 17 is discretionary and is guided by settled principles governing
grant of interim measures, namely, the existence of a prima facie case,
balance of convenience, and likelihood of irreparable prejudice.
8. It is equally well settled that interlocutory orders are, by their very
nature, discretionary and the scope of interference, in judicial review,
with discretionary orders is limited. Where the discretion exercised is
towards direction for a deposit, the court has to be additionally
circumspect, as the issue of whether a deposit ought, or ought not, to be
directed, so as to secure the sanctity of the arbitral proceedings and
ensure that they proceed to fruition, is essentially a matter to be assessed
by the learned Arbitral Tribunal. Unless such assessment is perverse or
suffers from manifest illegality, the approach of the court, ordinarily,
ARB. A. (COMM.) 11/2026 Page 12 of 18
should be one of restraint [refer: Dinesh Gupta v. Bechu Singh,
MANU/DE/3757/2021: 2021:DHC:4400].
xxx xxx xxx”
(Emphasis Supplied)
7. Likewise, holding that scope of interference in appeal against orders
passed by Arbitrators on applications under Section 17 of the Arbitration
Act, is limited and the restraints which apply on the Court while examining
the challenge to a final award under Section 34 of the Arbitration Act,
equally apply to a challenge under Section 37 (2)(b) of the Arbitration Act,
this Court in the case of World Window Infrastructure Private Limited
Versus Central Warehousing Corporation, 2021 SCC OnLine Del 5099,
held as follows:
“xxx xxx xxx
66. The scope of interference, in appeal, against orders passed by
arbitrators on applications under Section 17 of the 1996 Act is limited.
This Court has already opined in Dinesh Gupta v. Anand Gupta [Dinesh
Gupta v. Anand Gupta, 2020 SCC OnLine Del 2099] , Augmont Gold (P)
Ltd. v. One97 Communication Ltd. [Augmont Gold (P) Ltd. v. One97
Communication Ltd., (2021) 4 HCC (Del) 642] and Sanjay
Arora v. Rajan Chadha [Sanjay Arora v. Rajan Chadha, (2021) 3 HCC
(Del) 654] that the restraints which apply on the court while examining
a challenge to a final award under Section 34 equally apply to a
challenge to an interlocutory order under Section 37(ii)(b). In either
case, the court has to be alive to the fact that, by its very nature, the
1996 Act frowns upon interference, by courts, with the arbitral process
or decisions taken by the arbitrator. This restraint, if anything, operates
more strictly at an interlocutory stage than at the final stage, as
interference with interlocutory orders could interference with the
arbitral process while it is ongoing, which may frustrate, or impede, the
arbitral proceedings.
67. Views expressed by arbitrators while deciding applications under
Section 17 are interlocutory views. They are not final expressions of
opinion on the merits of the case between the parties. They are always
subject to modification or review at the stage of final award. They do
not, therefore, in most cases, irreparably prejudice either party to the
arbitration. Section 17 like Section 9 is intended to be a protective
ARB. A. (COMM.) 11/2026 Page 13 of 18
measure, to preserve the sanctity of the arbitral process. The pre-
eminent consideration, which should weigh with the arbitrator while
examining a Section 17 application, is the necessity to preserve the
arbitral process and ensure that the parties before it are placed on an
equitable scale. The interlocutory nature of the order passed under
Section 17, therefore, must necessarily inform the court seized with an
appeal against such a decision, under Section 37. Additionally, the
considerations which apply to Section 34 would also apply to Section
37(ii)(b).
xxx xxx xxx
82. That the province of Section 9 jurisdiction of the court, and of Section
17 jurisdiction of the arbitrator, are co-equal, stands settled by the recent
decision of the Supreme Court in Arcelor Mittal Nippon Steel India
Ltd. v. Essar Bulk Terminal Ltd. [Arcelor Mittal Nippon Steel India
Ltd. v. Essar Bulk Terminal Ltd., (2022) 1 SCC 712 : AIR 2021 SC 4350]
xxx xxx xxx”
(Emphasis Supplied)
8. Similar view has been taken by this Court in the cases of GLS Foils
Products Pvt. Ltd. Versus FWS Turnit Logistic Park LLP and Others,
2023 SCC OnLine Del 3904 and Dinesh Gupta and Others Versus Anand
Gupta and Others, 2020 SCC OnLine Del 2099.
9. Thus, the position of law is clear that the Court is possessed with the
power of only limited interference under Section 37 (2)(b) of the Arbitration
Act, only in cases where the impugned order passed by the Arbitral Tribunal
suffers from patent illegality or perversity.
10. Keeping in mind the aforesaid perspective, the facts of the case reveal
that the appellant was granted a license for on-board catering services under
the Master License Agreement. The license of the appellant was terminated
by the respondent vide order dated 02
nd
May, 2025, on account of persistent
passenger complaints against the appellant and unsatisfactory services by the
appellant. The said action of termination was preceded by multiple
ARB. A. (COMM.) 11/2026 Page 14 of 18
complaints by aggrieved passengers, issuance of penalties and various
communications by the respondent regarding dissatisfaction with the
services rendered by the appellant.
11. The respondent has placed on record various documents, including,
Show Cause Notices, passenger complaints, penalty letters and
correspondence, whereby, the appellant was warned about the deteriorating
standards of service. Various letters and show cause notices were issued by
the respondent to the appellant viz. Show Cause Notices dated 03
rd
April,
2025 and 08
th
April, 2025; Letters dated 24
th
December, 2024, 27
th
January,
2025, 21
st
February, 2025, 24
th
March, 2025 and 09
th
April, 2025, whereby,
the appellant was communicated of its continued breach of contract.
12. Reading of the various communications sent by the respondent to the
appellant, brings forth that maximum number of complaints regarding on-
board catering services, were registered against the appellant with respect to
the subject train, and the subject train was considered to be one of the worst
performing Mail Express Trains, a fact which was intimated to the appellant
vide letter dated 21
st
February, 2025. The appellant was communicated
regarding the various complaints relating to service quality, hygiene, food
quality, over-charging, etc. The appellant was directed in categorical terms
to take all round measures to improve the catering services. It was further
indicated that in case of failure by the appellant to take steps to improve the
level of catering services offered, the respondent would initiate process for
imposition of penal action as per Terms and Conditions of the Contract.
13. Attention of this Court has also been drawn to the tabulated statement
from the Catering Service Information Management (“CSIM”) Portal, where
ARB. A. (COMM.) 11/2026 Page 15 of 18
complaints are lodged by the passengers against the on-board catering
services. The brief summary of the complaints received against the appellant
for the subject train from the passengers, on the CSIM Portal, as on record
before this Court, is reproduced as under:
14. Perusal of the aforesaid table and the description of
complaints/remarks annexed with the present appeal, make it evident that
there are multiple complaints of over-charging, service quality, hygiene,
food quality, etc. against the appellant, which presents a troubling state of
affairs as regards the on-board catering services being offered by the
appellant on the subject train. On account of the said complaints, penalties
have been imposed upon the appellant, which have been duly paid by the
appellant.
15. This Court notes that the numerous complaints against the appellant
which were reflected on the CSIM Portal, as aforesaid, and which were also
brought to the notice of the appellant additionally by way of various letters,
ARB. A. (COMM.) 11/2026 Page 16 of 18
have not been challenged by the appellant.
16. Therefore, prima facie at the interim stage, it cannot be said that the
appellant was not put to notice before taking any action against it, or that the
appellant was not aware of the various complaints regarding instances of
unsatisfactory service by it.
17. Furthermore, this Court takes note of the provisions of Clause 6.10 of
the Master License Agreement which makes provisions for termination of
the license without any previous notice to the licensee in the event of
unsatisfactory service, poor quality of articles, persistent complaints from
passengers and services below the standard. Clause 6.10 reads as under:
18. The Termination Notice dated 02
nd
May, 2025, by which the contract
awarded to the appellant for the subject train has been terminated, makes
reference to Clause 6.10, with regard to the action taken by the respondent.
Therefore, prima facie, the action taken by the respondent cannot be faulted
with.
19. As regards the submission raised by the appellant pertaining to the
mandate of Clause 8.2 regarding issuance of a specific 15 days‟ cure period
notice, in view of reference to Clause 7.1 in the Termination Notice, the
ARB. A. (COMM.) 11/2026 Page 17 of 18
learned Arbitrator by the impugned order has held, as follows:
“xxx xxx xxx
27. During the course of arguments, the Claimant has not denied the
factum of these complaints against the food and services provided by
them being regularly brought to their notice by being placed on the
online portal which was accessible to them. There is, therefore, merit in
the Respondent's plea that it is not as if the Claimant has been taken by
surprise about the Respondent's decision regarding the deficiencies in its
service. No doubt, the provisions of Clause 8.2 which require a specific
15 day cure period notice, appears to have prima facie not been
followed but, at this interim stage, the Respondent's plea that the intent
of the said clause which mandates 15 days' notice duly stands fulfilled
cannot be simply brushed aside.
xxx xxx xxx”
(Emphasis Supplied)
20. This Court finds no perversity or illegality in the aforesaid finding of
the learned Arbitrator, and the same is a plausible view in the facts and
circumstances of the present case.
21. This Court also finds merit in the contention of the respondent that the
Court would not direct continuation of an arrangement under an agreement
which stands terminated. The legality of the termination of the contract by
the respondent would be a matter to be determined and adjudicated in the
arbitration proceedings. At the interim stage, while considering the
application under Section 17 of the Arbitration Act, the learned Arbitrator is
only required to consider whether the non-claimant/respondent is prima
facie entitled to take action for terminating the agreement. At the interim
stage, the validity of the Termination Order is considered only to the extent
of ascertaining as to whether there is a prima facie case in favour of the
claimant.
22. It is a settled proposition of law that matters of interpretation of
ARB. A. (COMM.) 11/2026 Page 18 of 18
contract lie primarily within the domain of the Arbitral Tribunal, and would
not warrant interference by this Court in an appeal under Section 37 (2)(b)
of the Arbitration Act (See: Ambrish H. Soni Versus Chetan Narendra
Dhakan and Others, 2024 SCC OnLine Bom 2280, Para 17).
23. The learned Arbitrator has categorically held that, taking into account
the factum of registration of various deficiencies in service quality, and
persistent passenger complaints on the online system, it would be against the
public interest to grant any interim stay to the appellant herein. Thus, the
learned Arbitrator did not find the present case to be a fit case where a status
quo ante deserved to be granted. The aforesaid view by the learned
Arbitrator does not suffer from any infirmity considering the submissions
and documents on record. The learned Arbitrator has taken into account the
material before the Arbitral Tribunal and has given a prima facie finding on
the issues before it. The view taken by the learned Arbitrator cannot be said
to be perverse and does not warrant any interference by this Court.
24. Accordingly, this Court finds no merit in the present appeal.
25. It is made clear that the observations made in the present order shall
not in any way influence the outcome of the arbitral proceedings.
26. The present appeal is consequently dismissed, along with the pending
applications.
MINI PUSHKARNA
(JUDGE)
JANUARY 19, 2026
KR/AK/SK
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