In M/S Brandavan Food Products vs. Indian Railway Catering and Tourism Corporation Ltd. (IRCTC), the Delhi High Court referred a dispute involving a ₹4.5 crore demand notice to arbitration. The petitioner, which provides on-board catering for the Vande Bharat Express, challenged IRCTC’s decision to increase the annual concession fee following the augmentation of the train from 16 to 20 coaches, arguing that such a unilateral modification was not permitted under the license agreement. Justice Om Prakash Shukla appointed a sole arbitrator to adjudicate the matter under the rules of the Delhi International Arbitration Centre (DIAC) and granted the petitioner the liberty to seek interim protection directly from the arbitrator.
- Nature of the Dispute: The petitioner filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection against a demand notice dated December 3, 2025, issued by IRCTC. The dispute centered on a license agreement for catering services on Train No. 22435-36 (Vande Bharat Express).
- Allegations of Contractual Breach: The petitioner argued that IRCTC illegally raised a demand for ₹4,50,06,151/- by unilaterally increasing the annual concession fee from ₹3,31,20,000/- to ₹4,14,00,000/-. The petitioner maintained that the contract only permitted fee variations based on changes in train frequency, not on the number of coaches.
- Agreement to Arbitrate: During the proceedings, both parties agreed (ad idem) that the disputes should be referred to arbitration. The respondent requested that the arbitration be conducted under the aegis of the Delhi International Arbitration Centre (DIAC).
- Court’s Directions and Appointments:
- Sole Arbitrator: The Court requested Ms. Manisha Suri (Advocate) to act as the Sole Arbitrator to adjudicate the disputes.
- Procedural Compliance: The arbitrator is required to provide disclosures under Section 12(2) of the Act, and the parties agreed to waive the notice requirement under Section 21.
- Interim Measures: The Court granted the petitioner liberty to move an application for interim relief under Section 17 of the Act before the appointed arbitrator.
- Final Disposal: The Court disposed of the Section 9 petition, explicitly stating that all rights, contentions, and preliminary objections—including the arbitrability of claims—remain open for final adjudication by the arbitrator.
2026 DHC 5566
Brandavan Food Products vs. Indian Railway Catering and Tourism Corporation Ltd (D.O.J. 10.07.2026)




