{"id":52718,"date":"2008-10-23T00:00:00","date_gmt":"2008-10-22T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/utsav-flavours-vs-union-of-india-ors-on-23-october-2008"},"modified":"2017-02-02T17:30:06","modified_gmt":"2017-02-02T12:00:06","slug":"utsav-flavours-vs-union-of-india-ors-on-23-october-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/utsav-flavours-vs-union-of-india-ors-on-23-october-2008","title":{"rendered":"Utsav Flavours vs Union Of India &amp; Ors. on 23 October, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Jharkhand High Court<\/div>\n<div class=\"doc_title\">Utsav Flavours vs Union Of India &amp; Ors. on 23 October, 2008<\/div>\n<pre>            IN THE HIGH COURT OF JHARKHAND AT RANCHI\n                       L.P.A.No.353 of 2008\n            Utsav Flavours.              ... ... ... ... ... ...Appellant(s)\n                             -Versus-\n            The Union of India &amp; Others.             ... ... ...Respondent(s)\n                                ------------\n            CORAM:       HON'BLE THE CHIEF JUSTICE\n                         HON'BLE MR. JUSTICE D.K.SINHA\n\n             For the Appellant(s):         Mr. Rajiv Sinha, Advocate.\n             For the Respondent(s):        Mr. Indrajit Sinha, Advocate.\n                                  -------------\n04\/   23.10.2008<\/pre>\n<p>          This appeal has been preferred against the order dated<\/p>\n<p>            9.9.2008 passed by the learned Single Judge in W.P.(C) No.5886 of 2007,<\/p>\n<p>            who has been pleased to dismiss the writ petition holding therein that the<\/p>\n<p>            termination of the lease deed in favour of the petitioner-appellant herein to<\/p>\n<p>            operate food plaza at Tatanagar Railway Station was justified, legal and<\/p>\n<p>            sustainable.\n<\/p>\n<p>                           Undisputed position in the matter is that the petitioner-appellant<\/p>\n<p>            herein had entered into an agreement with the respondent No.2 Indian<\/p>\n<p>            Railway Catering and Tourism Corporation which had issued a licence in<\/p>\n<p>            favour of the appellant to operate food plaza at Tatanagar Railway Station.<\/p>\n<p>            Thus the petitioner\/appellant is a licensee by virtue of a written agreement<\/p>\n<p>            which had been executed between the petitioner-appellant and the<\/p>\n<p>            respondent No.2 and one of the specific conditions in the agreement was<\/p>\n<p>            incorporated as clause 20 which pertains to maintenance of hygiene and<\/p>\n<p>            quality control of the food. Under clause 21.1 it was specifically laid down that<\/p>\n<p>            the licensee will provide sale of products of reputed brands only of the<\/p>\n<p>            storage, handling of raw materials and finished products will have to be in<\/p>\n<p>            extreme hygienic conditions. Besides this, another clause in the agreement<\/p>\n<p>            was also incorporated as clause 19 laying down therein that in the event of<\/p>\n<p>            any dispute and difference arising under the conditions of licence or in<\/p>\n<p>            connection with the licence except as to any matters, which was specifically<\/p>\n<p>            provided by the specific condition, will be resolved by arbitration as per<\/p>\n<p>            provisions of the Arbitration and Conciliation Act, 1996.<\/p>\n<p>                           Admittedly, a dispute arose between the appellant-licensee of<\/p>\n<p>            food plaza and the respondent No.2 (Indian Railway Catering and Tourism<\/p>\n<p>            Corporation) since the respondent No.2-Corporation alleged that the<br \/>\n<span class=\"hidden_text\">                             2.<\/span><\/p>\n<p>petitioner\/appellant was not selling the food articles through the food plaza as<\/p>\n<p>per the terms and conditions of the agreement as it was not maintaining<\/p>\n<p>hygienic conditions in the food plaza. For this purpose, show-cause notices<\/p>\n<p>were issued to the petitioner-appellant on several occasions indicating that in<\/p>\n<p>spite of the notices which were issued to the respondents on 10.9.2003,<\/p>\n<p>14.10.2003, 24.1.2004, 25.2.2006, 12.4.2007, 29.4.2007 and 11.5.2007 and<\/p>\n<p>also in spite of several opportunities granted to the petitioner-appellant to<\/p>\n<p>rectify the lapses on the part of the licensee, the petitioner-appellant failed to<\/p>\n<p>improve the conditions. Consequently, in terms of the clause in the<\/p>\n<p>agreement, the licence granted in favour of the petitioner-appellant         was<\/p>\n<p>cancelled which was challenged by the petitioner-appellant by filing a writ<\/p>\n<p>petition.\n<\/p>\n<p>              But in our considered opinion, when the dispute arose as to<\/p>\n<p>whether the petitioner-appellant was maintaining proper hygiene in the food<\/p>\n<p>plaza and whether it was operating the plaza          as per the terms of the<\/p>\n<p>agreement or not and there being also a clause in the agreement for<\/p>\n<p>appointment of an arbitrator in the event of any dispute arising between the<\/p>\n<p>parties, the petitioner-appellant had the remedy of taking recourse to the<\/p>\n<p>provisions in the agreement by taking steps for appointment of an arbitrator.<\/p>\n<p>The petitioner-appellant in spite of the clause in the agreement, filed a writ<\/p>\n<p>petition before the learned Single Judge, who by a reasoned judgment and<\/p>\n<p>order was pleased to hold that the petition was not fit to be entertained.<\/p>\n<p>              The learned Single Judge while examining the question as to<\/p>\n<p>whether the rules of natural justice were violated or not prior to canceling the<\/p>\n<p>licence, prima facie also examined the question as to whether hygienic<\/p>\n<p>conditions were maintained in the food plaza or not although the learned<\/p>\n<p>Single Judge was under no obligation to enter into the question of fact in this<\/p>\n<p>regard. The Petitioner-appellant herein, in our view, had entered into a<\/p>\n<p>contractual agreement with the respondent No.2 Indian Railway Catering and<\/p>\n<p>Tourism Corporation and his entire right to operate the food plaza emerged<br \/>\n<span class=\"hidden_text\">                            3.<\/span><\/p>\n<p>from the agreement which had been executed between them. Once the<\/p>\n<p>petitioner-appellant submitted that in the event of existence of any dispute,<\/p>\n<p>the licensee will take recourse to the arbitration proceeding, his writ petition<\/p>\n<p>could have been dismissed on this ground alone but fortunately for him, the<\/p>\n<p>learned Single Judge dismissed the writ petition on the ground that he was<\/p>\n<p>granted sufficient opportunity to establish that he had not violated the terms<\/p>\n<p>and conditions of the agreement for which licence was issued and also took<\/p>\n<p>notice of the fact that he failed to operate the food plaza in terms of the<\/p>\n<p>agreement wherein a specific condition for maintaining hygiene in the food<\/p>\n<p>plaza was essential. Once the condition to maintain hygienic condition was<\/p>\n<p>laid down as one of the basic grounds to operate the food plaza, the same<\/p>\n<p>could not have been ignored by the petitioner-appellant so as to contend that<\/p>\n<p>even if he had been granted sufficient time to improve the condition and he<\/p>\n<p>failed to improve, yet he had the right to continue with the same.<\/p>\n<p>              Hence, for the reasons which have been assigned by the<\/p>\n<p>learned Single Judge as also on the ground of the remedy already available<\/p>\n<p>to the petitioner-appellant under the agreement for referring the matter to the<\/p>\n<p>arbitrator, we see no ground to entertain this appeal and hence the same is<\/p>\n<p>dismissed.\n<\/p>\n<p>              Consequently, I.A. No.2840 of 2008 and I.A. No.2881 of 2008<\/p>\n<p>also stand rejected.\n<\/p>\n<\/p>\n<p>                                                [Gyan Sudha Misra, C.J.]<\/p>\n<p>                                                       [D.K.Sinha,J.]<br \/>\nP.K.S.\/S.B.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jharkhand High Court Utsav Flavours vs Union Of India &amp; Ors. on 23 October, 2008 IN THE HIGH COURT OF JHARKHAND AT RANCHI L.P.A.No.353 of 2008 Utsav Flavours. &#8230; &#8230; &#8230; &#8230; &#8230; &#8230;Appellant(s) -Versus- The Union of India &amp; Others. &#8230; &#8230; &#8230;Respondent(s) &#8212;&#8212;&#8212;&#8212; CORAM: HON&#8217;BLE THE CHIEF JUSTICE HON&#8217;BLE MR. JUSTICE D.K.SINHA For [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,18],"tags":[],"class_list":["post-52718","post","type-post","status-publish","format-standard","hentry","category-high-court","category-jharkhand-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Utsav Flavours vs Union Of India &amp; Ors. on 23 October, 2008 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/utsav-flavours-vs-union-of-india-ors-on-23-october-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Utsav Flavours vs Union Of India &amp; 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